Ask the Experts: Taking Bank Fees From Social Security Checks

Q. My bank garnished my Social Security check for overdraft fees. Is this legal?

A. Federal law generally prohibits creditors from seizing federal benefits to pay a debt. But in June, the California Supreme Court ruled that overdraft charges are not debts, so banks can deduct money from Social Security. Other states could follow California’s ruling, making it more difficult to protect Social Security benefits from bank fees, consumer advocates say.

Source: Stan Hinden