Sonoma County Bankruptcy Lawyer Blog

The California Credit Law Blog reports, among others, that recipients of federal benefits will get new protections from creditors under a federal rule going into effect May 1.

The new rule was pushed by the National Consumer Law Center as a way to make technical protections into real ones. Under current law benefits are protected but in reality they can still be seized or garnished and it's up to the debtor to take legal action to claw them back.

The new rule prohibits the practice of denying beneficiaries access to these essential funds in bank accounts. It requires all banks to determine whether an account contains protected funds. If an account contains protected funds, the bank is required to protect two months of benefit payments from garnishment, according to an NCLC press release (PDF).

SANTA ROSA - The credit bureau Experian is now including positive rental payment data on consumers' credit reports. And later this year, they'll include negative data, as well. The credit bureau hails this as a great benefit to consumers, who will be able to build up their credit ratings merely by paying their rent, as the LA Times reports.

It's "one more thing that lenders, landlords, insurance agents and even employers can learn about you," said Bill Hardekopf, chief executive of LowCards.com, a credit card comparison website.

Hardekopf added, "This could be great news for renters who dream of owning their own home."

Is it really? I think that really depends on the economy. For the vast majority of renters who routinely pay the rent on time, sure, it could really help build up the credit rating -- especially if you're renting after foreclosure or bankruptcy. But if people continue to have trouble making ends meet, late rent payments on your credit report could be as bad as an eviction.

Retailers were shocked by a California Supreme Court decision that retailers cannot ask for and store ZIP codes when customers pay by credit card. The Sacramento Bee reports that the Court held that ZIP codes are part of an address that allows others to identify an individual.

The Court said that with a name and a zip code, retailers can and do manage to identify addresses and phone numbers, in violation of California privacy laws.

Richard Holober, executive director of the Consumer Federation of California, hailed the ruling as "a great victory for consumer protection and common sense. It's nonsensical that a retailer can collect bits and pieces, turn them over to a data aggregation service and have a field day selling the information and otherwise using it for business purposes."

A strong victory for consumers and privacy rights and one that will limit merchandisers' ability to get around the law.