Financial institutions may not hold CARES Act rebate payments for garnishment or liens.
Maryland Gov. Larry Hogan issued an order April 29 exempting Coronavirus Aid, Relief, and Economic Security (CARES) Act payments from garnishment.
- CARES Act Recovery Rebates are exempt from, and shall not be subject to, garnishment.
- All financial institutions are hereby ordered not to hold a CARES Act Recovery Rebate of the judgment debtor under a writ of garnishment and to treat CARES Act Recovery Rebates as protected amounts under Maryland Rules 2-645.1 and 3-645.1.
- No banking institution or credit union incorporated under the laws of this state shall have any lien upon, or right of setoff against funds in any customer or member’s account, to the extent such funds are traceable to a CARES Act Recovery Rebate.
In response to the governor’s order exempting CARES Act payments, the Maryland Commissioner of Financial Regulation issued an advisory for Non-Depository Financial Services Providers.
The advisory states:
"In light of the governor’s order, all business entities licensed by the Commissioner of Financial Regulation ("Commissioner") shall conform to the dictates therein and cease any and all garnishment and/or set-off activity on said Relief Payments, whether directly or through an authorized agent. To the extent a licensed business entity inadvertently receives the proceeds of the Relief Payments, they should endeavor to rectify this mistake in order to permit those funds to be used by Maryland taxpayers for the intended purposes. Should it be determined that a licensed entity willfully or negligently violates the dictates of the governor’s order, such entity may be subject to regulatory action to the fullest extent of the law."
Visit ACA International’s COVID-19 page for more information on state and federal guidance.
For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at [email protected] or call (952) 926-6547.