Final rules were recently adopted implementing federal statutes intended to protect certain Federal government benefit payments from garnishment. The final regulations establish a protocol for financial institutions to follow when served with garnishments upon deposit accounts where Federal benefit payments are directly deposited. Examples of Federal benefit payments affected include Social Security Administration payments, Department of Veteran’s Affairs payments, and Office of Personnel Management payments. Financial institutions should review the updated regulations and evaluate policy and processes to ensure compliance with the final regulations.
Sound Counsel. Smart Business.