Got Garns?

The NCUA just released a Regulatory Alert on the proper way to handle the garnishment of accounts that are recieving certain forms of federal benefits.

If your credit union receives a garnishment order against a member who receives certain federal benefit payments like SSI or Social Security by direct deposit, you may need to perform an account review to identify a protected amount, and issue a detailed notice to the account holder.

On May 29, 2013, federal agencies adopted a final rule,  amending their regulation and the procedures governing the garnishment of certain federal benefit payments.  The final rule became effective on June 28, 2013.

You can read the full text of the Alert here.

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