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Bank levy rules California


Chris408
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how much leeway are banks given around when a bank levy gets enforced. Everything I've read states funds should be frozen at time of receipt.  

So for example if a levy is served at 2:30 on a Friday afternoon can they wait until the following Monday before freezing funds? Thus allowing checks and cash withdrawals? Are they allowed to deduct the service fee out if funds that should have gone towards judgement? 

 

 

 

 

 

 

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19 minutes ago, Chris408 said:

So for example if a levy is served at 2:30 on a Friday afternoon can they wait until the following Monday before freezing funds? Thus allowing checks and cash withdrawals?

Generally there is no leeway once the lawful order from the court comes in during regular business hours.  They move to freeze the funds for the creditor first as they are required to then the bank fee is added to the customer account creating a larger negative balance if there was not enough to cover the entire levy.  After that they add insult to injury and add the insufficient funds fee too.  Unless the funds are from a protected source i.e. disability they have to freeze the account immediately to prevent withdrawals away from the levy.

23 minutes ago, Chris408 said:

Are they allowed to deduct the service fee out if funds that should have gone towards judgement? 

They don't typically deduct the service fee first.  They usually do it last after the levy.  Much depends on bank policy.

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Thanks for the response. Im the creditor in this case and feel as if BofA didnt enforce properly. I was able to obtain statement info from the debtors account  which are included below

the proof of service receipt  i have says service occurred 10/28 at 2:20pm so the account should have been frozen at same time; but looking at the statements it wasn't enforced until 31st. Thus checks and charges made between  that time cleared the  account.  Also in The first image a single charge of  934 Listed for legal fee  but second image has two legal charges one being 125 deducted for legal service fee.  Are these valid concerns in your opinion? 

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1 hour ago, Chris408 said:

the proof of service receipt  i have says service occurred 10/28 at 2:20pm so the account should have been frozen at same time; but looking at the statements it wasn't enforced until 31st.

Unfortunately for some banks the "day" ends at 2 pm and therefore would be attached to the account on the next regular banking day.  In your case 10/28 was a Friday and the next banking day would have been Monday 10/31.  The second problem is the bank is required to ensure the funds are not from a protected source before freezing the account and that can add time to the processing.  

1 hour ago, Chris408 said:

Also in The first image a single charge of  934 Listed for legal fee  but second image has two legal charges one being 125 deducted for legal service fee.

Regardless of whether the customer has $4.35 or $4350 in their account the bank will charge the fee.

1 hour ago, Chris408 said:

Are these valid concerns in your opinion? 

No.  If you really want to collect then haul the person in for a debtor's exam.

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