Many had borrowed money from Small Loans and turned over their Social Security benefits to pay back the high-interest lender. Such lenders are increasingly targeting recipients of Social Security and other government benefits, including disability and veteran’s benefits. As a result, these lenders, which pitch loans with effective annual interest as high as 400% or more, can gain almost total control over Social Security recipients’ finances. Social Security recipients weren’t always a natural market for payday lenders, which typically require borrowers to have a bank account and a regular source of income. The Social Security Administration says it doesn’t have a problem with lenders capturing Social Security checks of disabled or orphaned children as long as the benefits money ultimately goes to the “current needs” of the child. Although federal law says creditors can’t seize Social Security, disability and veteran’s benefits to pay a debt, enforcement of the law is scant, and many Social Security recipients are unaware of their legal rights. read more