A change for NYers who will file in 2009...

[WoodSprite]

http://www.************************

[WhatMoney]

I have been following this legislation for the past year and have mentioned it here in the forum several times. It will be interesting to see if this law has any real effect once it becomes law. There has been a similiar law in California since 2004. The California banks mostly chosen to ignore it and then freeze exempt social security direct deposit checking account funds in direct violation of the State statues. They do this because they can get by with it. There are no penalties for violating the state laws in California if you are a bank. There are no mandatory penalties in the New York statues either. Until a minimum $10,000 per incident fine and jail time are included the banks will continue their criminal behavior.

So what will happen is some (most) banks will continue to freeze protected social security funds. They know that it will take a court order to release the funds, despite the new law. Every week in CA there are hearings in front of judges to release exempt SS funds on illegally frozen funds. Since there are no penalities to the banks, they continue to thumb their noses at the law, knowing a large percentage of seniors will not know their rights and simply turn over their exempt funds to the criminal collectors and their accomplices, the banks.

[ssdsco]