I just heard today that a payment centers was holding up payment of back benefits to a client of mine because the back benefits were over $30,000 -- which is not an unusual amount in disability cases that go to a hearing, much less those that go beyond -- because the client did not have direct deposit set up. They won't refuse to pay without a bank account but they do want to contact the client by telephone to see if there is a bank account they can make a deposit to. Since many people who lack a bank account also lack a telephone, this can be a problem. I have not heard of this before. I think it is new.
Didn't they just switch to requiring direct deposit for all new approved claims in May? Pretty new but it was made known. Next year, I think they will start requiring all existing payees to have direct deposit.
ReplyDeleteI think it's unreasonable to require all payees to have direct deposit. I thought that they were phasing out paper checks and replacing them with a preloaded debit card, like the welfare cards.
ReplyDeleteA new law phases out paper checks; ssa offers direct express cards akin to debit cards.
ReplyDeleteIt's not a new law, it's actually a law from 1999. But, the Treasury Dept regulations finally kicked in on May 1, 2011 after Treasury purportedly took care of some tricky issues like protection from garnishment orders on beneficiary bank accounts and the creation of a Treasury backed debit card for people who lack bank accounts.
ReplyDeleteSee the 2nd Q&A here: http://www.ssa.gov/deposit/DDFAQ898.htm
Info on Treasury's rule is here: http://www.fms.treas.gov/tfm/vol1/v1p4c150.html
Once again the anointed ones (attorneys) are exempted from the rules everyone else have to follow. Attorneys are not required to receive payment be direct deposit.
ReplyDeleteIf Gomer doesn’t have a bank account, these are two options:
Electronic Transfer Account (ETA). An ETA is a low-cost account designed by the Department of the Treasury (DT).
ETA Website:
http://www.eta-find.gov
If you would like to sign up for Direct Express or need more information, we suggest that you call the Direct Express enrollment line at 1-877-212-9991, or visit the Web site:
http://www.USDirectExpress.com
Attorneys would be happy to have fees direct deposited if SSA would recognize firms or legal aid agencies as the entities who are actually receiving the fees, not the attorneys as individuals. Many attorneys work for firms and the fees they earn are deposited into the firm's bank account which is not in the attorney's name and to which they often have no access. The attorneys themselves do not have accounts in their own names into which the fees they earn on behalf of the firm can be direct deposited. Unless and until SSA recognizes entities as representatives and not just individuals I don't see direct deposit being viable for attorneys. It's not because they are special, it's because SSA doesn't recognize the fact that they often are not the ones ultimately receiving the fees, despite what it says on the check.
ReplyDeleteWhile SSA employees are required to 'sell' people on debit cards and direct deposit, I am given to understand that clients can refuse -- at the present time. However, my understanding is that those who do not sign up, will at some point begin getting calls from the Treasury. The Treasury will then determine whether the client meets one of the exclusions from electronic delivery of payments. >>> I expect that some SSA employees are over zealous and/or do not understand policy correctly. . . .
ReplyDeletePerhaps, because it's such a large amount, they want to try to ensure the safety of the payment by encouraging direct deposit? I think it's good customer service to call and ask if they have a bank account before sending a gigantic check out to a mailbox that might not be secure. We do this in the FO, why not in the PC.
ReplyDeleteHaving had two checks stolen from my mailbox, anyone who doesn't do direct deposit or the debit card is a fool. This shold have been mandatory a long tie ago. As usual, SSA tries to please everyone. And Treasury dropped the ball as well.
ReplyDeleteAmen, anon 5:38. Amen. Been saying that for years.
ReplyDeleteMy son was approved for benefits on February 18th 2011 we called for an update in March & were told his case was pending... April they said his case was pending... April 21st we get told he was approved February 18th
ReplyDeleteThey then kept putting off contacting us about his back pay (6 months worth of back pay) we were calling in EVERY WEEK and every week they said it was not ready, there was nothing we needed to do etc etc etc...
FINALLY July 4th (day 136 of the supposed 120 days they take to cut a back payment check) and they tell us if our son does not have a "payee account" aka a savings account with the payee and the child's name ONLY on it.
We go to our local bank... they tell us they charge for this type of account... So we start on a hunt to find a bank that doesn't... in UNDER A WEEK because they told us that if it didn't happen in a week we lose his back pay!!!
We find ING Direct & they DON'T charge for this type of savings account... we get it set up & get back with no time to spare with the account info...
They tell us because they have never direct deposited to them we have to wait till we get an account statement first!!!!!!!!!!!!!!!!!!!!
This. is. insane.
I am just so sick of jumping through hoops for the government when they won't even play nice in the sandbox.