A couple new rules may affect you if you are receiving Social Security Benefits:
First, if you owe an unpaid debt, federal law says your Social Security benefits, in most cases, can’t be garnished to pay the bill. But despite the law, some older people have seen their bank accounts frozen including their benefits.
Andrea Coombs of Market Watch reports that “before the new rule, when debt collectors pursuing an unpaid debt secured a court-ordered garnishment, the bank often would simply freeze the money in the debtor’s account, whether or not it included federal payments, such as Social Security benefits, said Margot Saunders, an attorney with the National Consumer Law Center.”
Secondly, Andrea goes on to also explain that under the new law using Pre-Paid cards (like Direct Express) soon won’t be an option. “The Treasury Department also announced that anyone signing up for Social Security, Supplemental Security Income, veterans or some other federal benefits on or after May 1 can no longer get paper checks mailed to them. Instead. they will get their money electronically deposited in their bank account, or they can opt for a prepaid debit card.”
Are you currently receiving or planning to receive paper Social Security Checks? You should read up on the new laws. This Market Watch Article is a good place to start.
Please feel free to contact us at RF Financial Solutions if you have any questions.
