> Markdown copy of https://www.safarisop.com/resources/nws-garnishment_spotlight.html for AI agents.
> Index of every page on this site: https://www.safarisop.com/llms.txt

##### GARNISHMENT PROCESSING

# Garnishments Move from Back Office to Compliance Spotlight with CFPB Order

### Compliance Concerns after CFPB fines bank for improper garnishment practices

Published in ABA Bank Compliance Magazine, Sept/Oct 2022
By Lynn Reilly, VP of Customer Engagement, Safari SOP

Until recently, processing account garnishments was a routine back-office function that typically received little attention from management. That changed in May 2022, when a Consumer Financial Protection Bureau (CFPB) consent order put a spotlight on account garnishments as a compliance concern. Finding that Bank of America had engaged in unfair and deceptive garnishment practices, the CFPB levied a $10 million fine and ordered at least $592,000 be refunded to customers. The enforcement action also requires the institution to reform its processes and modify its deposit account agreements. (See: [Consumer Financial Protection Bureau Newsroom 05/02/22](https://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-bank-of-america-to-pay-10-million-penalty-for-illegal-garnishments/?_gl=1%2Axdt083%2A_ga%2AOTkyMTk0NjE5LjE2NDk3OTUxMDg.%2A_ga_DBYJL30CHS%2AMTY1NzgyNjQ1Mi4xOC4xLjE2NTc4MjY0ODcuMAhttps://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-bank-of-america-to-pay-10-million-penalty-for-illegal-garnishments/?_gl=1%2Axdt083%2A_ga%2AOTkyMTk0NjE5LjE2NDk3OTUxMDg.%2A_ga_DBYJL30CHS%2AMTY1NzgyNjQ1Mi4xOC4xLjE2NTc4MjY0ODcuMA))

The order’s potentially broader implications warrant attention from compliance professionals. The CFPB’s jurisdiction reaches only entities with assets over $10 billion, but any financial institution that continues practices inconsistent with the order may risk becoming the target of other regulatory agencies or consumer class action litigation. To avoid risks of potential liability, negative publicity, and business disruption, every financial institution should revisit its garnishment response processes in light of the order.