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Loophole lets bill collectors seize Social Security payments

Federal law prohibits creditors from garnishing Social Security disability and veterans’ benefits payments to cover bad debts, but the practice is pretty widespread as a recent article from The Wall Street Journal revealed.But at banks like Wachovia and others, the standard practice is to freeze the

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Federal law prohibits creditors from garnishing Social Security disability and veterans’ benefits payments to cover bad debts, but the practice is pretty widespread as a recent article from The Wall Street Journal revealed.

But at banks like Wachovia and others, the standard practice is to freeze the customer’s account when a garnishment order is received.

Legal Examiner Staffer

Legal Examiner Staffer

Legal Examiner staff writers come from diverse journalism and communications backgrounds. They contribute news and insights to inform readers on legal issues, public safety, consumer protection, and other national topics.

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