Federal Benefit Payments Garnishment Requirements: Eight FAQ’s – Rebroadcast
Are your compliance procedures up to date and being followed? This program provides a review of the requirements under the June 2013 final rule.
For over a year financial institutions have been required to comply with a new federal garnishment rule that became effective on June 28, 2013.
A key player in requesting garnishments is the U.S. Department of Treasury, along with several federal agencies, such as the Social Security Administration, the Department of Veterans Affairs, the Railroad Retirement Board, and the Office of Personnel Management. The final rule not only supersedes state laws that mandate how financial institutions process garnishments, but also applies to state tax levies and warrants.
- General review of the requirements. What types of accounts are covered?
- Key definitions
- Examples of “lookback periods” and calculating the “protected amount”
- Detailed steps financial institutions need to take when processing garnishment and levy requests
- Key topics in the “Garnishment Guideline” published in June 2013
- Required notices – model language and sample forms included
- How the rules impact garnishment and hold amounts
- Eight frequently asked questions:
1. How can a financial institution identify a federal benefit payment?
2. When a financial institution is determining the protected amount, what account balance should be used?
3. After establishing a protected amount, can a financial institution deduct a garnishment fee from nonprotected funds?
4. When are financial institutions required to send a notice to an account holder?
5. Are levies subject to the rule?
6. In section 212.4, the Final Rule provides an exception for orders obtained by State child support enforcement agencies or the United States. Does the Final Rule address the garnishment of Supplemental Security Income (SSI) payments by child support enforcement agencies?
7. Do the Agencies also discuss the garnishment of payments made by the Department of Veterans Affairs (VA) by child support enforcement agencies in the preamble of the Final Rule?
8. If State law establishes a minimum protected amount before a garnishment order can be applied, do the procedures in the Rule still apply?
This is a re-broadcast of our 11/17/14 webinar.
Experienced and new personnel responsible for processing third party claims against customer funds and compliance officers and auditors who review the processing of garnishment claims. This session does not address state-specific laws.
Susan Costonis CRCM, Consulting &Training for Financial Institutions, is a compliance consultant and trainer who is affiliated with gettechnical inc. She specializes in compliance management along with deposit and lending regulatory training. Most of her 34-year career was spent as a banker in several areas including lending, marketing, electronic banking, compliance, and senior management.
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