Regulatory AlertsCA 13-16: Interagency Examination Procedures for Garnishment of Accounts Containing Federal Benefit Payments Rule
The Board of Governors of the Federal Reserve System issued Consumer Affairs Letter CA 13-16 to provide interagency examination procedures for the Garnishment of Accounts Containing Federal Benefit Payments Rule. This guidance directs examiners to evaluate state member banks' compliance with 31 CFR Part 212, which implements statutory restrictions on garnishing accounts holding direct deposits of certain federal benefit payments. The attached procedures outline the specific steps and narrative discussions necessary for assessing institutional adherence to these consumer protection requirements.
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CA 13-16: Interagency Examination Procedures for Garnishment of Accounts Containing Federal Benefit Payments Rule
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. 20551
DIVISION OF CONSUMER AND COMMUNITY AFFAIRS
CA 13-16
October 30, 2013
TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS SECTIONS
SUBJECT:
Interagency Examination Procedures for Garnishment of Accounts Containing Federal Benefit Payments Rule
Applicability to Community Banking Organizations: This guidance applies to all state member banks, including those with $10 billion or less in consolidated assets.
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 institution’s compliance with the rule.
If you have any questions, please contact Lanette Meister, Senior Supervisory Consumer Financial Services Analyst, at (202) 452-2705.
signed by Sandra F. Braunstein Director Division of Consumer and Community Affairs
Attachments:
Examination Procedures for Garnishment of Accounts Containing Federal Benefit Payments Rule
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Last Update:
April 20, 2017