Direct deposit of personal safety checks: safe, quick – and disastrous

Michele Severin states she's thousands in credit-card financial obligation with no real method to spend it. a mother that is single Brooklyn, she along with her young daughter go on $1,300 30 days in federal federal federal government Social safety impairment payments – less compared to $50,000 per year she obtained as a brand new York City coach motorist before an accident in 1989 knocked her from the work.

To safeguard by by herself from creditors, she considered filing for bankruptcy, nevertheless the solicitors' charges had been too much on her and she figured creditors could not garnish Social protection. Presuming the amount of money had been safe, she setup deposit that is direct that is more affordable, better, and faster than depositing the cash in individual. But in March 2005, her bank froze the funds, and Ms. Severin, struggling to spend lease, discovered herself in court fighting an eviction.

Severin's situation is certainly not unique. Due to the fact federal agencies start another push for recipients to simply accept their Social Security checks by direct deposit, customer advocates indicate a little-known chance of with the system: Recipients who possess judgments against them are susceptible to access that is losing their cash.