creditors' collection practices scrutinized

"Faced with rising food and gas prices and little income growth, fewer resources have been available to manage debt."

As many people struggle to pay for necessities, they skip making debt payments. Many creditors in turn are seeking relief by taking borrowers to court. But in some cases the actions of the financial institutions in carrying out court orders are of questionable legality, according to a new report out by the Social Security Administration's Office of the Inspector General.

The inspector general found that some financial institutions are apparently violating federal law by garnisheeing accounts that receive electronic deposits of Old Age, Survivors and Disability Insurance, and/or Supplemental Security Income payments. These funds are supposed to be protected from creditors except under certain conditions.



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