The Wall Street Journal is reporting that recently some legislators are pressing for new rules that would allow banks to seize Social Security and other federal pension funds from private account-holders. Traditionally, such monetary seizures have been illegal.
Specifically, as part of President Obama’s stimulus package, those receiving Social Security benefit, survivors benefits, and v.a. benefits received $250 payments from the federal government. Now, some lawmakers want those funds held at the bank when the account holder owes debts to certain creditors. The legislators maintain that although the statute expressly forbids seizing money from the bank accounts of such federal pensionary recipients, the law does not specifically state whether or not automatic bank deposits can be stopped.
So much for the spirit of the law.