Lopez v. Washington Mutual Bank, Inc.,

If a bank account has a negative balance resulting from paying overdrafts and overdraft fees, the bank cannot apply a future direct deposit of Social Security or V.A. benefits to make up the deficit balance owed to the bank.

The court analyzed Sections 407(a) and 1383(d)(1) of 42 U.S.C., which prohibit creditors from reaching Social Security or SSI benefits by levies, garnishments, or "other legal process," and decided that these sections do not allow a bank to apply a future direct deposit of Social Security and SSI benefits to cover overdrafts and overdraft fees owed by the customer to the bank on that same account!