Recently Released Comptroller’s Handbook on Federal Garnishments Contains Inconsistencies
April 28, 2014
The Office of the Comptroller of the Currency’s Handbook, released on April 1, pertaining to the garnishment of accounts that contain federal benefit payments included inconsistencies with the federal garnishment rule. These inconsistences may lead examiners and financial institutions to apply the rule incorrectly. These inconsistencies were brought to light by Ted Kitada of Wells Fargo, chairman of CBA’s Legal Affairs Committee, who helped the American Bankers Association develop a memorandum to officials with the OCC. The OCC is currently looking into the matter.See CBA’s Regulatory Compliance Bulletin for more information.