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The Treasury Department and other agencies have issued proposed rules to enforce protection of Federal benefit payments from garnishment. Although a federal statute prohibits garnishing Social Security, Supplemental Security income and veterans benefits, many banks still “freeze” accounts when they receive a court-issued garnishmant order. The new regulations will end bank practices of “freezing” exempt benefits, which can cause overfraft fees, and prohibit steep garnishment fees from being charged.

www.rgulations.gov.