Credit Card Companies Snatch Social Security Payments
Holes are appearing every day in our so-called safety net. But even amidst all the budget cutting, most elders and disabled people probably feel that their monthly Social Security checks are something they can count on. Having escaped attempts at privatization under Bush, Social Security might appear secure, at least in the short term.
Maybe not. As New America Media reports, debt collectors for credit card companies and other creditors are now going after Social Security payments, which are supposed to be exempt from garnishment in such situations. Their tactics include freezing the bank accounts into which a beneficiary’s Social Security checks are direct-deposited. When this happens, often without warning, old and disabled people find themselve suddenly without the resources to buy food and medicine, which can trigger a desperate medical crisis.
That’s right. The meager amounts deposited into our accounts by the Social Security Administration, which many older people now must rely on more than ever before because of layoffs, the real estate crash, and the 401k collapse, are being illegally siezed, often by the very same companies that brought on the crisis in the first place–the big banks and other financial institutions that issue loans and credit cards. After taking in billions in public stimulus funds, they are wringing out every last dime by going after these public pensions, which are supposed to be protected. When you read stories about how Wall Street is relaxing with the comeback of high pay and big bonuses, think about this:
Margot Saunders of the National Consumer Law Center estimates that “tens of thousands of people every month,” who are elderly or disabled, are being forced into dire financial circumstances. Bank account freezes and illegal garnishments of exempt funds, including veterans’ benefits, are shredding safety nets. In her 2008 testimony before a House Ways and Means Subcommittee on Social Security, Saunders included a long list of stories.…