Ohio Attorney General Mike DeWine

Services > Services for military and veterans > Comment on the proposed garnishment rule

Comment on the proposed garnishment rule

A new federal rule recently proposed aims to restrict garnishment of federal benefit payments.

The rule, proposed by the Department of the Treasury, Social Security Administration, Department of Veterans Affairs, Railroad Retirement Board and Office of Personnel Management, requires the banking industry to implement new federal guidelines in protecting consumers against frozen benefit payments.

Currently, under state and federal law, these benefits are exempt from garnishment and court orders obtained by debt collectors. However, because the benefits often are directly deposited into recipients’ bank accounts, banks can freeze accounts that contain the protected funds, depriving many recipients of their main source of income.

The new rule will:
  • Require the U.S. Treasury to work with financial institutions to identify and protect exempted funds.
  • Apply only to individuals who receive federal benefits through electronic deposit.

Please add your comments below.

Comments


* Required



The public comment period for the proposal ends June 18, 2010.
As many seniors and veterans struggle to make ends meet, now it is more critical than ever to ensure their benefits are protected.

The new proposal will provide an additional layer of security to keep benefit payments from being garnished by debt collectors, as the law already confirms. This will protect those payments for the people who need them the most.

Richard Cordray
Ohio Attorney General

 
Home | Español | Privacy and Disclaimers | Careers | Contact | Webmaster | © 2011 Ohio Attorney General Mike DeWine