Social Security Banks must review an account within two business days of a garnishment order and cannot charge a fee against protected Social Security, VA, railroad or federal retirement deposits By Tyler Foster, Banks that receive a garnishment order must check the account for federal benefits within two business days, and they cannot charge a garnishment fee against the protected amount. That is how Treasury’s garnishment rule, Part 212 of Title 31 of the federal regulations, treats Social Security, VA, railroad retirement and federal retirement deposits made in the previous two months. The account holder does not have to ask for any of it. The rule works as a short sequence: a review, a protected amount, a notice and a limit on fees. Each step has its own clock, and most account holders never see them, because the first sign of a garnishment is often a debit card that declines. Under section 212.5, a financial institution must perform an account review no later than two business days after it receives the order and enough information to tell whether the debtor holds an account. The review comes before any other action that may affect funds in the account. A bank cannot freeze first and sort out the benefits later. The review asks one question: did a benefit agency deposit a benefit payment into this account during the lookback period? The rule’s list of covered payments includes Social Security benefits and Supplemental Security Income, VA benefits, railroad retirement benefits and Office of Personnel Management benefits, which covers federal retirement annuities. Other features of the account do not change the review. A joint account, mixed funds, several benefit payments or a balance above zero all leave the same test in place. Each account in the holder’s name is reviewed separately, and a bank may not trace money as it moves from one account to another