Can my bank or credit union charge me a fee for processing a garnishment if I receive Social Security or VA benefits?
- Listed: August 13, 2022 5:15 pm
- Expires: 99365 days, 14 hours
Description
Can my bank or credit union charge me a fee for processing a garnishment if I receive Social Security or VA benefits?
Yes. Your bank can charge a garnishment fee, but only if you have more than 2 months’ worth of benefits in your account.
- Learn more about the Debt Collection Rule and your debt collection rights.
If your account balance is less than 2 months worth of Social Security or VA benefits, your bank has to protect that amount — period. The bank can’t charge garnishment fees against this protected amount. The bank is not allowed to charge fees for this garnishment later, when you have more funds.
If you think your bank charged a garnishment fee when it shouldn’t have:
- Call your bank and explain why you think the garnishment fee is wrong.
- Consider seeking legal assistance. The Center for Elder Rights Advocacy can refer you to a local agency that provides free legal help to seniors who qualify. You can call the Center for Elder Rights Advocacy at: (866) 949-2372.
- You can also find a lawyer in your state.
- You can use our sample letter to tell a collector that you receive protected income from Social Security or VA benefits. Check out the sample letter and instructions here.
If you’ve had a problem with debt collection, you can submit a complaint online or by calling (855) 411-2372.
Disclaimer: This site/app is not affiliated with any Government or public agencies. You may find this and additional information from US Consumer Financial Protection Bureau. This app is not affiliated with above agency or US government. We have provided this app for easy access for freely available information from Consumer Financial Protection Bureau, a U.S. government agency. We assume no legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process described or depicted on this site/app.
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Listing ID: 94562f7dc03ad699
- Listed by: Editor
- Member Since: July 24, 2018
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