Changes to Requirements for Identifying Exempt Funds When Processing Garnishments
WHAT?
Since the federal garnishment regulations took effect in May of 2011, financial institutions have developed a "Plan B" for the handling of third party claims when federal benefit payments are involved. When they determine that an individual received certain types of federal benefit payments via direct deposit, they follow this separate track and establish a "lookback" period. Then they calculate a "protected amount." Then, they sent a notice to the debtor. Only after all of these steps do they return to their normal procedures and do what they can to respond to the third party's claim.
Now, the regulation that dictated that course of events is changing. The changes do not alter the fundamental process outlined above, but they tweak it at virtually every step along the way.
This webinar is designed for those with no experience as well as those with a couple years' worth of practice in compliance with these regulations. It reviews the federal requirements on a step by step basis, noting the nuances of each change that is taking place.
Supplementary information accompanying the original regulation indicated that compliance will be reviewed in on-site examinations by federal functional regulatory agencies; e.g. the FDIC, OCC, etc.
WHY?
The changes to the regulation are substantive and will affect several pulse points in the way financial institutions handle third party claims when federal benefit payments are present.
PROGRAM CONTENT
- A full review of what the regulation requires with specific attention to the points where changes were made
- New definition of "account"
- Revised definition of "benefit payment"
- Clarification of the definition of "garnishment order"
- Revised definition of "protected amount" and clarification of "account balance"
- Adjustment of procedures upon receipt of a garnishment order
- Account closure
- "New garnishment order"
- Changes on permissibility of "garnishment fees"
- Mailing instructions for the notice to the account holder
WHO SHOULD ATTEND?
The expected audience is bank personnel who are responsible for designing and implementing procedures for processing third party claims against customer funds.
Attendees must already have thorough knowledge of their particular state's laws and court procedures governing the processing of third party claims against customer accounts. This program does not encompass the laws of any particular state; no attempt is made to answer questions regarding state law. It would be prudent to have your bank counsel attend so you can help determine how these federal requirements can be coordinated with the law of your state.
Remember, when you attend BOL webinars, not all of your employees have to be available the day of the program - you can access it again for up to 30 days after the program. If you realize that additional personnel should have attended they can watch the re-run!