Thursday, July 17, 2008

SSA OIG publishes report on bank fees charged for illegal garnishments against SS funds

The SSA's Office of the Inspector General has published a report on financial institutions that have been charging service fees for garnishing accounts holding Social Security funds.  Federal law prohibits involuntary alienation of SS funds on deposit except in very limited circumstances.  Here's a summary of the report:

"The objective of our review was to determine whether financial institutions (FI) were
deducting service fees and garnishments from beneficiaries’ direct deposit, personal
accounts. This report contains information related to the 12 largest FIs and a sample of
13 small-, medium- and large-sized FIs that received electronic deposit of payments to
Social Security beneficiaries in the United States from September 1, 2006 through
August 31, 2007. Specifically, this report contains information on

• the number of FIs that allowed the garnishment of Old-Age, Survivors and Disability
Insurance (OASDI)1 and/or Supplemental Security Income (SSI)2 payments;
• the number of accounts upon which garnishment-related fees were imposed and the
total dollar amount of fees charged to these accounts as a result of the garnishment;
and
• the types of fees these FIs charged beneficiaries."

Read the report here:  http://www.ssa.gov/oig/ADOBEPDF/A-15-08-28031.pdf

http://lawprofessors.typepad.com/elder_law/2008/07/ssa-oig-publish.html

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