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Ideas for Dealing With Blind Garnishment Writs

Answered by: 
Ken Golliher

Question: 
Our bank really needs some ideas for dealing with what we call a "rogue" law firm that is serving bundles of hundreds of garnishment writs at a time on us. Needless to say, processing the writs is burdensome and disruptive!We contacted the law firm, and learned that they are going to be serving over 2000 on our bank by the end of the year. They are all blind attachments, so it is obvious the firm has no idea where it may find accounts, so they are blanketing the area with garnishment orders. In the last 500 writs we processed, we identified fewer than 10 accounts in our bank.Is there anything we can do to get the firm to "call off the dogs"?
Answer: 

In my home state we call them "shotgun levies." However, without knowing what state your from, there won't be anyone in this forum who can help you out. I suggest you re-post in your state's forum.

A couple of generic suggestions:
* Talk to your bank's legal counsel. In some states the levy is a court document signed by the attorney and it's assumed that the attorney knows or at least has reason to believe there are funds at your bank subject to the claim. Signing the form when no such belief exists is characterized as "abuse of process" and may earn the attorney a contempt citation.

* Talk to your state bankers association. In my home state they passed a statute that every claim had to be accompanied by a $10 check payable to the levied bank. Obviously, it was not intended to adequately compensate the receiving bank for processing the claim. It was intended to cut down on shotgun levies. It worked. If your association can be made to see this as a problem tell them you want something in exchange for the dues you pay: legislation.

First published on BankersOnline.com 2/14/11

First published on 02/14/2011

Filed under: 
Operations
Filed under operations as: 
Garnishment
IT

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