Answer:
When the analysis of the regulation says "it serves no useful purpose to follow the rule’s procedures in situations where a financial institution has made a determination not to take any action affecting an account as the result of the receipt of a garnishment order... [and] if a financial institution will not be freezing or removing funds from an account in response to a garnishment order, then the financial institution should not perform an account review to determine if a protected amount should be established," it's referring to situations in which the institution determines that it will take no action because the order doesn't identify a depositor of the bank.
For example, the person targeted in the order is just a signer, not an owner, of accounts. Or the garnishment names John O. Smith with SSN 123-45-6789 and you have no account matching that combination, but you have an account owned by John O. Smith Jr., with SSN 456-78-9012.
If you have multiple accounts in the name of the target of the garnishment order, and you are able to satisfy the garnishment amount with the funds in the customer's accounts that don't have direct deposits of federal benefit payments, you don't need to complete an analysis of all the customer's accounts, and don't have to provide the notice required in the regulation. You can proceed using your garnishment processing procedures applicable to non-protected funds situations.
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