Effective June 28, credit unions that receive garnishment orders against accounts that receive federal benefit payments via direct deposit must provide the member with access to the funds.
The final rule from the U.S. Treasury, Social Security Administration, Veteran's Administration and other agencies requires institutions to determine the sum of the benefit payments deposited to the account during a two-month period, and then provide access to an amount equal to that sum, or to the current balance of the account, whichever is lower.
The rule also eliminates the requirement set by a 2011 rule to send a disclosure to all members receiving a garnishment order. Instead, notices are only required in the event funds in the account exceed the protected amount.
Garnishment orders issued by state or municipal authorities were also added to the rule.
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