NCUA Addresses Garnishment of Accounts with Federal Benefits
August 29, 2011
August 30, 2011
In a recent Regulatory Alert (11-RA-04), the National Credit Union Administration (NCUA) offered guidance to help credit unions comply with a joint interim final rule that addresses garnishment of accounts that include federal benefits payments.
The joint rule pertains to the following benefit payments:
- Social Security and Supplemental Security Income benefits
- Veterans benefits
- Federal Railroad retirement, unemployment and sickness benefits
- Civil Service Retirement System benefits
- Federal Employees Retirement System benefits
The rule requires financial institutions that receive a garnishment order for an account to determine whether any federal benefit payments were directly deposited into the account within 60 days prior to receipt of the order.
Questions? Contact the Compliance Hotline at 800.546.4465, or e-mail us at email@example.com.