Can my bank garnish my 401k payment under Hardship Program? Posted on April 26, 2011

I'm an employee for BPPR. I'm out of work with no income since Sept 2010 due to a job related accident. Under going treatment. I applied for financial help from my 401k under the Hardship Program. since I have a negative in my account I wrote a letter asking HR to send me the check by mail, they deposited it in the account and the bank garnished it and applied it towards the debt. This is because a check that was paid to me by a bank in Ohio bounced, after 4 days my bank cleared it and the 5th day said it was not payable. I reported this and The Federal Reverse of Ohio is investigating. The money my bank gave me through my 401k under the Hardship program was to be applied towards my mortgage payment that is 3 months behind. (mortgage in the same bank). Asked them in writing for them to apply the payment directly. Can they do this with me Being funds under hardship/disability?

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