US Treasury Updates Federal Garnishment Rule

General information

Last week, the U.S. Treasury published revisions to its federal garnishment rule, which was first issued in 2011. The rule seeks to protect certain government benefit payments from being garnished. The changes clarify definitions such as “account” and “garnishment order” (to include orders or levies issued by a state, state agency, or municipality) and include additional details about how banks can charge a garnishment fee.CBA Legal Affairs Committee Chairman Ted Kitada, senior counsel with Wells Fargo Bank, has updated a summary and analysis of the garnishment rule he first prepared when the rule was first published.