Direct deposit of individual security checks: safe, fast ?? disastrous and
Michele Severin claims sheвЂ™s got thousands in credit-card obligation that is financial no means to fix invest it. A mom that is single Brooklyn, she along with her youngster endure $1,300 each month in federal government personal protection disability repayments ??вЂњ never as set alongside the $50,000 each year she obtained as a brand new York City advisor motorist before a major accident in 1989 knocked her through the work.
To protect by by by herself from creditors, she considered filing for bankruptcy, even so the attorneysвЂ™ costs had been much too high she figured creditors couldnвЂ™t garnish Social Security on her behalf and. Presuming the money wound up being safe, she set up deposit this is certainly direct that could be less expensive, safer, and faster than depositing the income in specific. However in March 2005, her bank froze the funds, and Ms. Severin, unable to invest rent, discovered herself in court fighting an eviction.
SeverinвЂ™s example just is not unique. While the federal agencies begin another push for recipients to simply accept their Social Security checks by direct deposit, consumer advocates explain a threat that is little-known of the machine: Recipients who have judgments against them have been in risk of access that is losing their funds.
The specific situation, advocates state, isn’t the direct-deposit system, even so the failure of finance institutions to help make use of safeguards to protect reports with exempt funds from being frozen.