Garnishments Flashcards

1
Q

T or F

Generally, federal payments are protected from garnishments.

A

TRUE

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2
Q

Prior to taking any action related to a garnishment order, and no later than _____ following the receipt of the order, the institution must determine if the _________________ has attached a Notice of Right to Garnish Federal Benefits.

A

* two business days

* Federal Government or a State Child Support Enforcement Agency

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3
Q

When the Notice of Right to Garnish Federal Benefits is not included, the institution must perform an account review of the preceding ______ within _______.

A

* two months

* two business days (can be negotiated with the creditor if needed)

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4
Q

When the account lookback determines that no federal benefits were deposited into the account, what garnishment procedures should be followed?

A

the usual procedures established by the institution

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5
Q

When the account lookback determines that federal benefits were deposited into the account, what garnishment procedures should be followed?

A

The institution must act to protect those benefit payments

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6
Q

T or F

The institution must perform separate reviews for each account in the name of the account holder that is subject to the garnishment action.

A

TRUE

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7
Q

What constitutes the protected amount for garnishment lookbacks?

A

the lesser of

* the sum of all benefit payments posted to an account during the lookback period OR

* the balance in the account when the review is performed

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8
Q

Protected amounts for garnishment lookbacks as calculated by the institution are considered to be conclusively:

A

exempt from garnishment.

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9
Q

The institution must provide a notice to the account holder named in a garnishment order within _____ from account review and include:

A

* 3 business days

* the protected amount and any excess funds

* notice of the garnishment

* forms pertaining to the order

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10
Q

Institutions may not charge or collect a fee against the protected amount but may collect a garnishment fee up to ________ after the review if additional available funds are deposited into the account.

A

five business days

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11
Q

Institutions must retain records to demonstrate compliance for a period of _______ from the date of garnishment order receipt.

A

two years

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12
Q

Penalties for violations of garnishment rules can be up to:

A

*$7500 per day for general violations

* $37,500 per day for safety and soundness violations

* $1,425,000 per day for knowingly or recklessly causing substantial losses

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13
Q

T or F

Garnishment rules apply to accounts where federal benefits are paid by treasury checks.

A

FALSE

the garnishment rules only apply to benefits paid electronically

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