New Treasury Rule Protects Social Security And Other Federal Benefits from Garnishment

A federal rule recently issued strengthens the rights of retirees, veterans and disabled Oklahomans to keep certain federal benefits in their bank accounts and not worry that those funds will be garnished by creditors, according Legal Aid Services of Oklahoma.

The new rule is proposed by the U.S. Treasury Department, and will take effect on May 1 but is still open for public comment. The rule will limit creditors’ ability to freeze and take funds from accounts that contain Social Security, Supplemental Security Income (SSI), VA and other federal benefits. These benefits, which are legally protected from court-issued garnishment orders, are critical to the survival of many recipients.
Legal Aid Litigation Director Mike Miller commended the treasury department, the Social Security Administration, Department of Veterans Affairs and other federal agencies involved in working to safeguard essential benefits. He said "Legal Aid often is contacted by  Oklahomans who are retired, disabled or are veterans  and who have no money for food, rent or medicine because of creditor-imposed garnishment freezes."

"Social Security, Supplemental Security Income (SSI), VA and similar benefits are intended to meet beneficiaries’ daily needs. Federal law makes these funds immune from seizure by creditors," said Miller. However, in actuality, creditors frequently obtain court garnishment orders so that banks then freeze bank accounts containing protected funds. The account holder then may be unable to access funds for daily expenses for weeks or months.

“Oftentimes, the paperwork and procedures needed to end an illegal freeze of bank accounts proves too daunting for the elderly or disabled person as well as veterans, so the bank ends up turning over the untouchable funds to a creditor. This new rule will give peace of mind to many elders, veterans, and disability benefit recipients.”

The new rule prohibits the practice of denying beneficiaries access to these essential funds in bank accounts. It requires all banks to determine whether an account contains protected funds. If an account contains protected funds, the bank is required to protect two months of benefit payments from garnishment or the balance on the day the bank reviews the garnishment, whichever is less.

For instance, a debtor receives $1,250 a month in Social Security. On the day the bank reviews the garnishment, the debtor has a $1,000 account balance. The protected amount would be $1,000, and nothing would be taken out of the account. In another case, on the day the bank reviews the garnishment, the account holder has a $3,000 balance. The debtor receives $1,250 a month in Social Security. The protected amount would be $2,500. Up to $500 could be garnished from this account but the bank must follow state laws regarding that garnishment, and the bank is permitted to charge a garnishment fee. Protection of more than two months of benefit payments requires additional court filings by the beneficiary.

In announcing the rule, the agencies stated that its framework could be expanded in future years to protect other federal payments such as military retirement.

Comments on the new rule may be filed by May 24, 2011, by going to www.regulations.gov and entering “3206-AM17” in the keyword field.

Legal Aid Services of Oklahoma is a not-for-profit law firm which provides free civillegal assistance to eligible low-income individuals and their families and to elderly persons in the areas of family, consumer, housing, health and employment.  Legal Aid attorneys and staff work through a network of fully-staffed law offices and satellite offices, serving eligible clients in all 77 counties of Oklahoma.
The statewide toll-free number to call for legal assistance is 888-534-5243.
Funding for Legal Aid is from the Legal Services Corporation, the State of Oklahoma, the Oklahoma Bar Foundation, 15 United Way or United Fund organizations and generous attorneys, law firms, foundations, businesses and individuals throughout the state contributing to the Campaign for Justice.

2nd Annual Day Without Violence, Enid, Oklahoma (April 16th)

This Saturday, April 16, 2011, from 10 a.m. to 3 p.m. is the 2nd Annual Day Without Violence event sponsored by the Garfield County Domestic Violence Task Force.

It will be held in conjunction with the Smokin Red Dirt BBQ cookoff in Downtown Enid, near the intersection of Independence and Maine streets.  The goal is to increase awareness of what constitutes domestic violence and what services are available for victims.

Legal Aid Services of Oklahoma will be there, along with about 20 other agencies, including the Garfield County Sheriff, Enid Police Department, Garfield County District Attorney's office, Enid YWCA, Enid Public Schools,  OK DHS, OK Department of Corrections, Vance Air Force Base, Enid United Way and many others.

Agencies will have all kinds of fun activities for the whole family, including 'hands-on' activities for the kids!  We’ll have prizes, free sno-cones and inflatables.  Stop by the Legal Aid area for information about domestic violence and what you can do, trinkets and draw a picture on the topic "a Day Without Violence." 
Speaking of Domestic Violence, no one has the right to harm you physically or emotionally, hit you, choke you, stalk you, harass you... none of this is acceptable behavior, in fact, it might be a crime!

If you find yourself in this position, you are NOT alone!  There is help available.
In Oklahoma, here is a list of all of the domestic violence shelters where you can get help:
http://www.lawhelp.org/Program/3545/RTF1.cfm?pagename=Links%20and%20Resources

If this sounds like you or some you know, you might need a Victim's Protective Order. 







Find more information at this link:

Family Law>Domestic Violence
http://www.oklaw.org/link.cfm?3350

2011 Tips on Avoiding Fraudulent Charitable Contribution Schemes

Recent natural disasters - tornadoes, floods, and earthquakes, and now add tsunami and nuclear disaster to the list - open the door for American to help others.   These sudden events and the immediate pictures we see of the loss of life, emotional distress and incredible property loss to victims, evoke our desire to help these victims by sending manpower and contributions of water, food and money to provide some relief to these awful situations.

Generosity, unfortunately gives the opportunity for criminals to scam donors.
Your contribution may not get to the organization you intended or the organization may not even exist!
Before making a donation of any kind, check out these tips:

• Unsolicited or spam e-mails - Don't respond!
   
• Beware of individuals who claim to be officials asking for money by e-mail.
   
• NEVER click on links in an e-mail you did not ask to receive or that you are not sure that if you know the sender.
  If you think it is the real organization, try typing the link in a new browser window or try to locate the organization using a search engine like  Google, Yahoo or Bing.
   
• Unless you know the person sending the email, NEVER open attachments.
  Emails claiming to have pictures in attached files may contain viruses.
   
• Always make the contribution directly to an organization you know.  Never give money to someone else who is going to give the money to a charity.
   
• Check the organization out!  Check for a website.  Check with the Oklahoma Secretary of State, your local Better Business Bureau or your local Chamber of Commerce.
  
  The Oklahoma Solicitation of Charitable Contributions Act, requires every organization located in Oklahoma or asking for contributions in Oklahoma (with a few exceptions) to register with the Oklahoma Secretary of State.
  This is the link to search:
  https://www.sos.ok.gov/corp/corpInquiryFind.aspx
   
• Ask family and friends who they trust with their charitable contributions.
   
• Do not give your personal or financial information to anyone who asks for a donation. You may open yourself up to identity theft!

More information on charitable contribution schemes and other types of online schemes, can be found at http://www.lookstoogoodtobetrue.com/.

If you believe you have been a victim of a charity-related scheme, contact the National Center for Disaster Fraud by telephone at (866) 720-5721, or by fax at (225) 334-4707 or see this website:
http://www.justice.gov/criminal/oilspill/about/ncdf.html

[The National Center for Disaster Fraud (NCDF) was started by the Department of Justice to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina. Its mission has expanded to include suspected fraud from any natural or man-made disaster. More than 20 federal agencies, including the FBI, participate in the NCDF, allowing it to act as a centralized clearinghouse of information related to relief fraud.]

If you believe you have been the victim of identity theft, check the consumer law section of the OKLaw.org (legal information) website 

or click here for "Identity Theft and Financial Fraud" information.

You can also report suspicious e-mail solicitations or fraudulent websites to the Internet Crime Complaint Center at http://www.ic3.gov/.