Compliance Question of the Week
November 5, 2013
Nov. 5, 2013
We received a garnishment for a member. When we called to let him know that we were holding the funds for the garnishment, he told me he was in the process of filing bankruptcy. Can I still honor the garnishment?
Yes. In both Oregon and Washington, the mention of filing bankruptcy has no bearing on the garnishment until a bankruptcy has actually been filed. If the member is simply talking with an attorney, the credit union will need to honor the garnishment order. The credit union is not protected from liability if it does not comply with the garnishment order.
Questions? Contact the Compliance Hotline: 1.800.546.4465, firstname.lastname@example.org.
Posted in Compliance.