Blog: Garnishments

Account garnishment is one of the few bank operations where the institution is caught between two parties who can both sue it. Freeze too much and the accountholder has a claim; release too much and the creditor or the taxing authority does. The procedure exists to make the bank's conduct defensible either way, and following it precisely is the entire defense.

Note at the outset: garnishing a deposit account is not the same as garnishing wages. Wage garnishment is an ...

Regulation CC decides when a customer can spend a deposited check. It is the rule the front line applies most often and understands least precisely, and it is unusual among consumer regulations in that most violations are not about the decision — they are about the notice that should have accompanied it.

What Regulation CC Does

Regulation CC implements the Expedited Funds Availability Act and also governs the check collection and return process, including electronic check