CUNA contends that proposed federal rules requiring credit unions and banks to perform an extensive account review when it receives a garnishment order would be burdensome while NAFCU just wants credit unions to have more time to conduct the review.
Those are among the differences between the associations' opinion on the proposed rule, as expressed in separate letters sent last week to the Treasury Department.
The rules are aimed at clarifying the procedures that financial institutions use to evaluate how much of the funds in an account are exempt from being garnished. It is aimed at closing a loophole creditors have used to seize deposits of federal benefits from accounts at credit unions and banks.
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