NY trying to pass new exempt income protection law If you live in ny you won't have to worry about them freezing your bank account if you keep less than 1,716 in your account or 2,500 if you are receiving any exempt income that has been deposited electronically within the past 45 days.. Many people on social security were complaining that their ss direct deposits were being frozen by ca's that the Governor of ny has been sent to sign the 'Exempt Income Protection Act".It already has been passed by the State Senate and Assembly.It is now waiting for the Governor to sign it into law.It states that even if the consumer doesn't have protected money,the bill would still prevent the first 1,716. from being frozen-equal to 30 hours of minimum wage a week for eight weeks.That reflects the state exemption for wages and the state's 7.15 minimum wage. Smaller bank accounts can't be frozen at all.The bill also changes state law to allow no more than 2 restraining notices per year per bank account.It also prohibits a bank from charging a fee to customers if it can't freeze the account or a freeze violates the law.The creditors will no longer be able to ignore the exemption laws and just freeze the accounts.The 1,716 and 2,500 threshold will be adjusted for inflation by the state banking superintendent every 3 years beginning april 1,2012.The lower threshold will rise to 1,740 on july 24,2009 when the federal minimum wage rises to 7.25 an hour.
Thanks for the info. Do you have any idea how this may affect bank accounts that are currently restrained? I had less than $300 between my savings and checking (I'm currently unemployed) and one of my creditors restrained each account for more than $5000. Any info would be helpful - thanks.
The article did not mention anything about present accounts.However once the Governor signs it into law more information may become available.Will have to wait and see.Hope he signs this bill into law sooner than later. [Posted by 74.78.12.224 via WebWarper: saving traffic, antivirus, acceleration, anonymizer, optimization of sites This is added while posting a message to avoid misuse. Try: http://webwarper.net/webwarper.exe Example of viewing: Lycos ]
