![]() ![]() ![]() If you receive $1,000 in Social Security each month, your bank will see that $2,000 in Social Security was direct deposited in the last 2 months.To take advantage of the automatic protections for direct deposited Social Security and VA benefits, you can sign up to have these benefits direct deposited to your bank account or loaded onto a prepaid card.Įxamples of how the automatic protection works If your benefits are loaded onto a Direct Express card or to another prepaid account, they are still automatically protected from garnishment just like money in a bank account. Many people receive federal benefits such as Social Security or VA on a prepaid card. If your account has more than 2 months’ worth of benefits, your bank can garnish or freeze the extra money. However, if that extra money that is garnished is exempt from garnishment under federal or state law, you may be able to go to court to have your money released. The bank must protect 2 months’ worth of benefits from garnishment and let you use that money. If a collector tries to garnish money in your account, your bank must look at your account history to see if you received any of the above benefits by direct deposit in the last 2 months. Your bank or credit union must automatically protects 2 months’ worth of benefits ![]() Federal Railroad retirement, unemployment and sickness.Read about how the automatic protection works. There are some exceptions to this rule, which are explained below. Department of Treasury rule requires banks to automatically protect certain federal benefits from being frozen or garnished if they are direct deposited into your account. After a debt collector sues you for the debt and wins a judgment, it can get a court order for your bank or credit union to turn over money from your account or prepaid card. ![]()
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