We are issuing this notice to obtain public input regarding an anticipated change to an Agency payment procedure that permits benefit payments to be deposited into a third-party's ``master'' account when the third party maintains separate ``sub'' accounts for individual beneficiaries. We anticipate changing our current procedure in light of concerns about how high-interest lenders are using this master/sub account procedure. We are also seeking comments on the practice that some beneficiaries follow of preauthorizing their banks to transfer their benefits to lenders immediately after the benefits are deposited into their accounts.
I think this has also been used by Long Term Disability (LTD) insurers to collect their offset against Social Security disability benefits. Allsup, which represents many LTD recipients before Social Security at the behest of their LTD insurers, advertises its "Overpayment Recovery Service", through which Allsup "Withdraw[s] overpayment funds directly from claimant’s bank account using our patented electronic process."
This my explain why attorneys who represent Social Security claimants, such as myself, exhibit some disdain for Allsup.
This my explain why attorneys who represent Social Security claimants, such as myself, exhibit some disdain for Allsup.
2 comments:
Disregarding your comment of the "disdain" for Allsup in certain attorney circles, I will comment on what Allsup actually does in our Seamless ORS transaction. First of all, the Federal Register request you note appears to relate to lenders. Allsup is not a lender. Also, our Seamless ORS process does not involve sub accounts or involve high interest lenders in any way. In our process the SSDI claimant authorizes us to transfer that portion of their retroactive SSDI lump sum deposit that is made to their individually owned bank account, that represents an LTD overpayment, to their LTD carrier. This is totally a voluntary transaction on the part of the SSDI claimant. The vast majority of our claimants authorize us to perform this transaction for them because they want to protect their LTD benefits from suspension. They make this decision after our representatives thoroughly educate them regarding the interaction of SSDI and LTD benefits. We feel it is our responsibility to provide this education because we do not want to obtain SSDI benefits for our claimants, only to see them lose their LTD benefits through suspension. Suspension of LTD benefits at SSDI award time was rampant throughout the LTD industry until Allsup introduced this new service in January, 2000. It was rampant because no one was providing the timely financial guidance these individuals needed until Allsup stepped in and provided it. Furthermore, Seamless ORS was only our first step in providing financial guidance to our claimants. We are currently developing an entire package of new financial and health care services for our claimants that are designed to pick up where our SSDI assistance and Seamless ORS services leave off. That's because we have always recognized that even after we obtain Social Security and Medicare benefits for an individual, that individual still has many other unmet financial and health care needs. We know they need and will want our new services, because they understand the value of our current services and trust and follow our guidance. Allsup's role is simply to provide both the financial and health care services these individuals have always needed but have never had. If that earns us "disdain", so be it.
Jim Allsup
what a political rant and crock for what you do. so political - you represent the LTD only, not claimant. be real
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