What Is a Garnishment Processing Fee?
The laws of all states in the U.S. permit different types of garnishment. Garnishment is an order of a court directing an employer or financial institution to retain funds of an employee or depositor. Those funds are transmitted to the court as part of the process of satisfying a judgment entered in a particular case. Garnishment processing fees legally can be assessed by an employer or financial institution.
Other People Are Reading
-
Function
-
The function of a garnishment fee is to compensate an employer or financial institution for the time and expense associated with processing a garnishment request.
Identification
-
State law and the rules of the local court establish the range permissible for a garnishment processing fee. An employer or financial institution must abide by these limits. The fee range differs from one jurisdiction to another.
-
Effects
-
The effect of a garnishment processing fee is the removal of additional money from the employee's paycheck or the depositor's account. In other words, ultimately it is the person being garnished who bears the expense of the garnishment processing fee.
Benefits
-
The benefits of a garnishment processing fee include ensuring that an employer or financial institution remains willing to cooperate in the process of collecting a judgment through the judicial system. Absent a garnishment processing fee, employers and financial institutions become less willing to devote the time and energy of their staffs to the garnishment process.
Considerations
-
If the garnishment of a financial account or wages continues on a recurring basis, most jurisdictions permit the financial institution or the employer to charge a garnishment processing fee each time money is removed from an account or a paycheck.
-
References
Resources
- Photo Credit Cash image by Greg Carpenter from Fotolia.com
