If a customer is to receive a social security deposit on the 1st and last week we received a (1) levy OR (2) a garnishment, can we attach these funds or is a social security deposit protected and has to be released to the customer? I am looking for where to find documentation on this. Thanks

42 USC 407 is the cite regarding social security proceeds being exempt from levies, granishments, attachments.

Lissie,

See also some very informative stories on BOL in recent months regarding offsets and levies. One in particular is Lopez vs Washington Mutual.

MarkB

Embarassed to bring up again! Does the Lopez case pertain to ninth district or all districts? We are located in Ky?

How are other bank handling overdrafts on accounts with SS & VA deposits?

Remember - the Lopez opinion was overturned. Even if it wasn't however, it only applies to the 9th Circuit.

Thank you for verifying that I am not losing what is left of my mind. Our senior vice president insisted I was wrong and that case had not been overturned. Thanks again.

Refer your SVP to Bankers Online CourtWatch section on Social Security Offsets or more specifically to the new opinion.