Answers about Garnishments

My bank received a garnishment order. Is my bank required to determine if my bank account includes Social Security or other Federal benefit payments?

Generally, if your bank receives a garnishment order for your bank account after May 1, 2011:

  • The bank must perform an account review.
  • The account review shall be performed within two business days of receiving the garnishment order.
  • The required review period is a lookback at the two month period beginning the calendar day before the bank performs the account review.

Examples of the timing of the account review and the lookback period:

Financial institution receives a garnishment order on Wednesday, November 17. The financial institution performs the account review on Thursday, November 18. The review period begins on Wednesday, November 17, the day preceding the date of account review. The review period ends on Friday, September 17, two months earlier.

Financial institution receives garnishment order on Tuesday August 30. The financial institution performs the account review two business days later on Thursday, September 1. The review period begins on Wednesday, August 31, the day preceding the date of account review. The review period ends on Wednesday, June 30, the last date of the month two months earlier, since June 31 does not exist to correspond with August 31.

Financial institution receives garnishment order on Wednesday, March 17. The financial institution performs the account review the same day on Wednesday, March 17. The review period begins on Tuesday, March 16, the date preceding the date of account review. The review period ends on Saturday, January 16, two months earlier.

Financial institution receives garnishment order on Friday, December 10. The financial institution performs the account review two business days later on Tuesday, December 14. The review period begins on Monday, December 13, the date preceding the date of account review. The review period ends on Wednesday, October 13, the corresponding date two months earlier.

June 2011