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In his article entitled "Bill collectors seize Social Security benefits from bank accounts despite prohibitions," Stephen Ohlemacher exposes yet another unfair and deceptive scheme made possible by a flawed banking system. The sub-title and beginning of his article appears below:

"Creditors use loophole to seize protected benefits

WASHINGTON - Bill collectors are exploiting a legal loophole to seize Social Security and veterans' benefits even though federal law is supposed to protect the payments from creditors.

Lawmakers from both parties who have been pressing the Treasury Department for years to close the loophole with new regulations are growing impatient. The Obama administration is now promising action but has offered no timetable for developing the new rules.

Federal law has long protected Social Security and veterans benefits from most creditors, with a few exceptions for child support, alimony, unpaid federal taxes and debts to other federal agencies. But creditors have been seizing the payments anyway by getting court orders to freeze and garnish bank accounts that receive the benefits through direct deposit...."

You can read the rest of the article at:

http://blog.taragana.com/n/bill-collectors-seize-social-security-benefits-from-bank-accounts-despite-prohibitions-69847/

However, at:

http://www.creditscorequick.com/2009/06/seniors-in-credit-crisis-can-they.html

Marty Cliff offers the following good advice:

"...Since many citizens receiving Social Security benefits need those funds for daily living expenses, it becomes vital to protect them. Three possible solutions are worth consideration:

. Separate accounts: Set up one bank account for nothing but Social Security payments. Make sure the bank knows that Social Security is its only funding source.

. Switch to receiving checks in the mail and use cash or money orders to pay your bills.

. Have your social Security benefits electronically loaded to a debit card not affiliated with a traditional bank account. This is the government's Direct Express debit card."

You can learn about the Direct Express debit card at:

http://www.socialsecurity.gov/pubs/10073.html

Why it will take, literally, an act of Congress to keep these blood-thirsty creditors from illegally preying on seniors trying to subsist on very little is beyond my comprehension.

Uncle Sam could stop this nonsense if he wanted to.

- Ed Smith, Publisher
The EHS Letter Manual