En español | Federal law generally prohibits creditors from seizing Social Security benefits to pay a debt, except for alimony, child support, federal taxes and non-tax debts owed to certain other federal agencies.
But recently, the California Supreme Court ruled that overdraft charges are not debts, so banks can deduct money from Social Security payments to pay these charges. Other states could follow California’s ruling, consumer advocates say.
Join or Renew With AARP for Just $16 a Year
- Discounts on travel and everyday savings
- Subscription to AARP The Magazine
- An ally on issues that matter most to you
- Free membership for your spouse or partner