Federal Garnishment Rule Customer Notice
Issue/Inquiry
The Federal Garnishment Rule requires the Bank to provide accountholders receiving covered benefit direct deposit payments a notice when their accounts are garnished. The Bank sends a copy of the actual levy notice to the customer when the account is debited, which includes the amount debited and the date of the debit. The levy appears to include all applicable information except for the accountholder’s right to consult an attorney or legal aid service in asserting a further garnishment exemption against the creditor that initiated the order for amounts above the protected amount.
How do other banks provide this notice? Should the Bank have sent a separate notice along with the levy, or is the levy alone sufficient?
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