Feb 23, 2011

New Garnishment Rules

From today's Federal Register:
Treasury, SSA [Social Security Administration], VA [Department of Veterans Affairs], RRB [Railroad Retirement Board] and OPM [Office of Personnel Management] (Agencies) are issuing an interim final rule to implement statutory restrictions on the garnishment of Federal benefit payments. The rule establishes procedures that financial institutions must follow when they receive a garnishment order against an account holder who receives certain types of Federal benefit payments by direct deposit. The rule requires financial institutions that receive such a garnishment order to determine the sum of such Federal benefit payments deposited to the account during a two month period, and to ensure that the account holder has access to an amount equal to that sum or to the current balance of the account, whichever is lower.

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