WASHINGTON, D.C. – The options Subcommittee on Social safety held a hearing right now to examine just how specific lending that is payday other standard bank techniques may damage susceptible Social safety beneficiaries, and can even undermine the intent associated with personal safety Act. Representative Earl Pomeroy (D-ND), a senior person in the Subcommittee, presided within the hearing and delivered the opening statement that is following

“Today’s hearing will examine exactly exactly how banking that is certain financial obligation collection and lending practices affect Social Security and Supplemental Security money (SSI) advantage payments, and might undermine conditions for the personal safety Act designed to protect beneficiaries’ basic income. Our company is worried why these techniques have the prospective to damage beneficiaries that are vulnerable.

“The personal protection Act contains unique conditions to protect personal protection and SSI advantages of creditors, to be able to make sure funds are offered for fundamental requirements such as for instance meals, clothes and shelter. Area 207 associated with the Social safety Act generally protects advantages of garnishment, project, along with other appropriate procedures associated to your assortment of financial obligation.

“However, a quantity of economic methods have actually started to light which undermine these defenses

These methods include freezes on beneficiary bank records, garnishment, high-fee direct deposit plans, and payday financing to un-banked SSA beneficiaries. The hearing just isn’t designed to foster debate on the general benefits or drawbacks of payday or “advance payment” loans. read more →