Consumer Affairs Letters
Interagency Examination Procedures for Garnishment of Accounts Containing Federal Benefit Payments Rule
AND COMMUNITY AFFAIRS
|SUBJECT:||Interagency Examination Procedures for Garnishment of Accounts Containing Federal Benefit Payments Rule|
The Task Force on Consumer Compliance of the Federal Financial Institutions Examination Council has approved the attached interagency examination procedures for the Garnishment of Accounts Containing Federal Benefit Payments Rule (Garnishment Rule). Earlier this year, the Department of the Treasury, the Social Security Administration, the Department of Veteran Affairs, the Railroad Retirement Board, and the Office of Personnel Management issued the Garnishment Rule to implement statutory restrictions on garnishment of certain exempt federal benefit payments. The rule, 31 CFR Part 212, establishes procedures that a financial institution must follow when it receives a garnishment order against an account holder who receives certain Federal benefit payments by direct deposit. The attached examination procedures provide a narrative discussion of the Garnishment Rule and procedures for examiners to follow in evaluating an institutionís compliance with the rule.
If you have any questions, please contact Lanette Meister, Senior Supervisory Consumer Financial Services Analyst, at (202) 452-2705.
Sandra F. Braunstein
Division of Consumer and Community Affairs