After a financial obligation collector sues you for the financial obligation and wins a judgment, it may get a court purchase for the bank or credit union to make over funds from your bank account or prepaid card. This might be called a вЂњgarnishment.вЂќ A U.S. Department of Treasury rule requires banks to immediately protect particular benefits that are federal being frozen or garnished if they’re direct deposited into the account. There are several exceptions to the guideline, that are explained below. Learn about the way the automated security works.
Advantages included in this guideline:
Your bank or credit union must immediately protects 2 monthsвЂ™ well worth of benefits
If a collector attempts to garnish money in to your account, your bank must glance at your bank account history to see if you received some of the above advantages by direct deposit within the last few 2 months. The lender must protect 2 monthsвЂ™ well worth of benefits from garnishment and allow you to utilize that cash.