Judgments - Attachments and Garnishments - U.S. District Court of Arizona Finds Garnishment Restrictions in Title III of Consumer Credit Protection Act Inapplicable to Wages Deposited in Bank Account
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Authors
Kubichek, David A.
Issue Date
1976
Volume
9
Issue
Type
Journal Article
Language
Keywords
Alternative Title
Abstract
INTRODUCTION|In 1968, pursuant to the bankruptcy and commerce powers, Congress passed Title III of the Consumer Credit Protection Act (C.C.P.A.) . The general purpose of that act was to exempt from garnishment seventy-five percent of the earnings of an employee for any one work week.|In Dunlop v. First Nat'l Bank of Arizona, the United States District Court for the District of Arizona found that the garnishment provisions of Title III of the C.C.P.A. do not exempt funds held by a bank in its depositors' accounts, and that a garnishee bank is under no duty to contest garnishment proceedings against such funds. This decision overrules previously issued opinion letters of the Department of Labor, which would extend Title III protection to such funds on the theory that they retain their character as earnings even after deposit in an account. The immediate result of this decision, subject to the vagaries of state law, will be to provide creditors with an unprotected source of earnings from which to satisfy amounts owed them by debtors...
Description
Citation
9 Creighton L. Rev. 761 (1975-1976)
Publisher
Creighton University School of Law