maddaughter
Junior Member
What is the name of your state (only U.S. law)? Minnesota.
I receieved a check from my school for $4800 for federal student loans and pell grants that exceeded my tuition, I signed it over to my mother so that she could cash it for me. My mother deposited the check on the 9/14 but it didnt post until the 15th as it was a sunday. By Friday my mother said the check had still not cleared her account, so we called the bank and found out her account had been garnished. Sure enough in the mail she got a letter from the attorney dated sept 16th. In the letter it states that they served the bank on the 11th. Well the bank never notified my mother and just released the funds to the creditor. Now to my knowledge the bank cannot release the funds until 14 days after they noticed was served to see if the debtor is going to file an exemption, is this correct? Also since the funds are from federal student loans, and are traceable back to me can they take that money or is it exempt. I have to contact the legal department of the bank as well as the attorneys office on monday as we discovered this at the end of the business day on friday. Any advice?
I receieved a check from my school for $4800 for federal student loans and pell grants that exceeded my tuition, I signed it over to my mother so that she could cash it for me. My mother deposited the check on the 9/14 but it didnt post until the 15th as it was a sunday. By Friday my mother said the check had still not cleared her account, so we called the bank and found out her account had been garnished. Sure enough in the mail she got a letter from the attorney dated sept 16th. In the letter it states that they served the bank on the 11th. Well the bank never notified my mother and just released the funds to the creditor. Now to my knowledge the bank cannot release the funds until 14 days after they noticed was served to see if the debtor is going to file an exemption, is this correct? Also since the funds are from federal student loans, and are traceable back to me can they take that money or is it exempt. I have to contact the legal department of the bank as well as the attorneys office on monday as we discovered this at the end of the business day on friday. Any advice?