Garnishment of Accounts Containing Federal Benefits Payments Procedures
Updated 01/01/2024
Under federal regulation 31 CFR Part 212, banks that receive a garnishment order are required to follow certain procedures, including the following: (1) determine whether any account held by the named account holder received exempt Federal payments by direct deposit; (2) determine the sum of protected Federal benefits deposited to each individual account during a two month period; and (3) ensure that the account holder has access to an amount equal to that sum or to the current balance of such account(s), whichever is lower. Use the following procedures when performing a garnishment on an account which contains federal benefit payments.
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