Illegal Collections - Don't direct deposit your social security or veteran's benefits!

Today's WSJ brings us news about collection agencies illegally stealing money from old folks with the complete cooperation of the banks these old folks entrusted with their social security funds, and the courts. Harsh you say? Read the article. Well at least the preview (WSJ only allows subscribers to read the full article). The whole article would make you cry anyhow.

Federal law is clear. It is illegal for creditor's to take anyone's social security or veteren's benefits to repay debts.

And yet, banks, courts and collection agencies do it all the time. They've learned that the penalties for getting caught are minor and the rewards are easy. What happens when anyone complains? The banks say it isn't their job. The collection agency says it isn't their job. The courts say it isn't their job. It's nobody's job. Well isn't that nice. For everyone stealing the money that is.

You would think that mighty bastion of civil liberties (ie, the ACLU) would be on this like a report of girls from the local church on the sidewalk in front of Planned Parenthood wouldn't you. Eh! You're wrong. No money or big press in it. These old folks were lucky to get a mention in the financial paper.

Does it matter whether or not they actually owe the money? Well yes it does. Does that make it legal? No it doesn't. Does that mean any of these parties are going to stop any time real soon? No it doesn't. Easy money to a manager is easy money indeed.

What can you do? Keep an eye on your elderly family members and friends. Let them know that their social security benefits and/or veterans benefits are legally untouchable by collection agencies. Let them know that it may be easier to direct deposit their social security and/or veteran's benefit check(s) but it sure isn't safer anymore now that banks have discovered this easy revenue source.