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.
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 cant 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 shouldnt 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 or visit:
- You can also find a lawyer in your state by visiting AskMiss April.
- 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 youve had a problem with debt collection, you can submit a complaint online or by calling (855) .