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Flashcards in Garnishments Deck (13):
1

T or F

Generally, federal payments are protected from garnishments.

TRUE

2

Prior to taking any action related to a garnishment order, and no later than _____ following the receipt of the order, the institution must determine if the _________________ has attached a Notice of Right to Garnish Federal Benefits.

* two business days

* Federal Government or a State Child Support Enforcement Agency

3

When the Notice of Right to Garnish Federal Benefits is not included, the institution must perform an account review of the preceding ______ within _______.

* two months

* two business days (can be negotiated with the creditor if needed)

4

When the account lookback determines that no federal benefits were deposited into the account, what garnishment procedures should be followed?

the usual procedures established by the institution

5

When the account lookback determines that federal benefits were deposited into the account, what garnishment procedures should be followed?

The institution must act to protect those benefit payments

6

T or F

The institution must perform separate reviews for each account in the name of the account holder that is subject to the garnishment action.

TRUE

7

What constitutes the protected amount for garnishment lookbacks?

the lesser of

* the sum of all benefit payments posted to an account during the lookback period OR

* the balance in the account when the review is performed

8

Protected amounts for garnishment lookbacks as calculated by the institution are considered to be conclusively:

exempt from garnishment.

9

The institution must provide a notice to the account holder named in a garnishment order within _____ from account review and include:

* 3 business days

* the protected amount and any excess funds

* notice of the garnishment

* forms pertaining to the order

10

Institutions may not charge or collect a fee against the protected amount but may collect a garnishment fee up to ________ after the review if additional available funds are deposited into the account.

five business days

11

Institutions must retain records to demonstrate compliance for a period of _______ from the date of garnishment order receipt.

two years

12

Penalties for violations of garnishment rules can be up to:

*$7500 per day for general violations

* $37,500 per day for safety and soundness violations

* $1,425,000 per day for knowingly or recklessly causing substantial losses

13

T or F

Garnishment rules apply to accounts where federal benefits are paid by treasury checks.

FALSE

the garnishment rules only apply to benefits paid electronically