What is the Garnishment Bank Act?

The Garnishment Bank Act is a Washington state law that helps protect the rights of creditors and consumers. It dictates how creditors are able to collect on debts owed to them by consumers. The Act also provides guidelines on how banks must handle garnishment orders. Under the Garnishment Bank Act, creditors must first provide the bank with a valid court order or other type of garnishment order prior to attempting to collect a debt from a consumer’s bank account. This order must include the name of the creditor, the debtor’s bank account information, and the amount of money the creditor is seeking to withdraw from the debtor’s account. The bank must then freeze the amount of money the creditor is seeking to collect from the account. The Garnishment Bank Act also requires banks to freeze the accounts of debtors who are the subject of a garnishment order, even if the debtor has sufficient funds in the account to pay off the debt. Banks are also prohibited from disclosing any information regarding the account to the debtor or the creditor without a court order or other type of garnishment order. This Act is important for protecting consumer rights in Washington state. It ensures that creditors cannot arbitrarily withdraw money from a consumer’s account without a valid court order. It also provides consumers with the ability to dispute the garnishment order if they believe it to be invalid. The Garnishment Bank Act helps to ensure the creditors and debtors in Washington state are treated fairly and that their rights are protected.

Related FAQs

What is the National Bankruptcy Reform Act?
What is the Fair Debt Collection Practices Act?
What is the Community Reinvestment Act?
What is the Right to Financial Privacy Act?
What is the Gramm-Leach-Bliley Act?
What is the Bankruptcy Abuse Prevention and Consumer Protection Act?
What are the requirements for a valid loan agreement?
What is the Check Clearing for the 21st Century Act?
What is the Unlawful Internet Gambling Enforcement Act?
What is the Community Reinvestment Modernization Act?

What is the Garnishment Bank Act?

Related FAQs

Related Blog Posts