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New bank garnishment rules coming soon

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New bank garnishment rules coming soon

Post  nancym on Sun Apr 25, 2010 6:41 pm

Anyone collecting federal benefits like SS, SSI, or Veteran's benefits who might be having trouble with a creditor should be aware of new rules probably coming into effect later this year as far as their bank accounts. (This is good news for a change.)

http://online.wsj.com/article/SB10001424052702303695604575182610458761930.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

Here's the Senate Finance committee's statement on the matter, similar to the news article:

http://finance.senate.gov/newsroom/chairman/release/?id=60d20ccb-8871-4c84-9a60-3fd1cea8a8d5
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nancym

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Re: New bank garnishment rules coming soon

Post  studioWI on Sun Apr 25, 2010 7:17 pm

Thanks Nancy. This doesn't apply to me specifically, but I appreciate the fact that you're posting good information.

Believe me, I appreciate that fact.

studioWI

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It's a start

Post  Sheila on Mon Apr 26, 2010 11:05 pm

I guess it is good to protect social security. Now if they can only protect child support and unemployment. When my account was taken, (It's not just frozen, they take all the money out as well), they said even though I got child support, they were allowed to take it because once it is in the account they can't tell what it is. Remember, for anyone who has read my other post, my creditor also TOOK my child's account. Now, I have to go to court to retrieve any of it. It is still legal for these creditors to take EVERYTHING out of your bank account. I have a feeling this new legislation won't change much. After the creditors clear one's account, then your have to PROVE it is social security. Most folks cannot afford a lawyer.

What angers me is the article states that people really need their benefits to live. Well, HEY, I needed my money for FOOD!!!!!!!!!!!!!!!!!!!

Sheila

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Re: New bank garnishment rules coming soon

Post  nancym on Wed Apr 28, 2010 12:41 am

Sheila,

It's not just SS checks, it's any government payments, including unemployment checks. I shouldn't have said just federal payments or made that clearer. And this won't take effect till sometime later this year, unfortunately for you and many others, myself included.

What it would do is give the banks the authority to look at the account and they can tell when most protected payments are deposited there. Then there is an amount established that cannot be frozen, determined by the amount of those types of payments, presumably amounts over that could be frozen. I don't know the exact details, and I'm not sure they've even worked out all the details, but the key is that now your bank doesn't have the authority to ignore the court order, but they would have if these new Treasury rules go into effect.

Until they do, it's a good idea to keep all your money out of the bank and try to use those debit cards that are available, or keep some in cash. I'm not sure about PayPal; I think they can seize money from that as well under current law.
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The article

Post  Sheila on Fri Apr 30, 2010 10:55 pm

The article itself talks about SS. Anyway, I don't need advice about what to do. I will never use a bank in any form again. Yes, paypal can be seized because it comes from your bank account. Even if you have a smart debit card, if you have direct deposit to the card, it can and WILL be seized. Cash is the only way to go. This should have never been allowed in our country to begin with. I for one, will never trust a bank or the government again. It was all a lie. Unless you are rich, on welfare, or a BANK, you pretty much don't count in the good ole USA. Hard lesson to learn, but true.

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Re: New bank garnishment rules coming soon

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