Garnishment rule eyed in NAFCU Compliance Monitor
Oct. 2, 2013 – NAFCU members with questions about the final rule on garnishment of accounts containing federal benefit payments can get answers in this month’s NAFCU Compliance Monitor, which also looks at CFPB’s Supervisory Highlights from the summer and its overview of elements of effective compliance management systems.
“If your credit union receives a garnishment order against a member who receives certain federal benefit payments by direct deposit, you may need to perform an account review to identify the protected amount and issue a detailed notice to the account holder,” the Monitor explains. The article also details what the notice to the account holder must include, what the protocol is for unprotected funds and the rules on record retention after the receipt of a garnishment order.
The Monitor also includes the “Compliance Forum” – a collection of questions for NAFCU’s compliance team and their answers. This month’s edition features questions about garnishment orders and the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) of 2008.
Finally, the Monitor has a list of important compliance deadlines coming up, including Regulation E amendments providing protections to consumers who send international remittance transfers to other consumers or businesses in a foreign country, which are scheduled for Oct. 28. For more information on remittances, take a look at last month’s NAFCU Compliance Monitor, which featured an article on the subject.
NAFCU Compliance Monitor