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SSA to Keep Track of Representative Payees

Some recipients of Social Security disability are either considered not able to handle their own funds, or simply prefer others to do so. For this reason, it is possible to appoint a representative payee to receive and handle monthly disability checks. Not surprisingly, there is some potential for fraud and abuse when disability recipients allow someone else to take care of their money, which is why the SSA has decided to keep track.

More specifically, the SSA is planning to create a database of companies and individuals acting as both representative payee and employer. Eventually, officials hope to also record all representative payees, not just those also acting as employers.

The issue came to light after it was discovered that Henry's Turkey Service in Atalissa, Iowa was home to several dependent men. They all worked on the property, and since they lived there as well, the company began accepting their Social Security retirement or disability funds, deducting a large portion each month for room and board. It was determined that the men were being paid much lower than minimum wage, and thus being taken advantage of.

Currently, there are about 7 million disability recipients who have allowed a friend, family member, or employer to act as representative payee. Clearly, not keeping track of these payees could lead to unfortunate situations in which the recipient is taken advantage of. It might not necessarily be on as large a scale as Henry's Turkey Service, nor is the fraud limited to employers, but keeping a database of payees can be considered a good start to keeping recipients' money safe.

Of course, choosing the right person to look after your monthly checks can prevent any issues from occurring. If you are wondering if you need a representative payee, or want to know some tips for selecting one, you can contact a lawyer.

If you, or your loved one, are suffering from a severe physical or mental disability, you should contact a Social Security Disability lawyer immediately to learn about your rights and determine eligibility. The process of securing Social Security Disability Insurance benefits and/or Supplemental Security Income (SSI) can be difficult and overwhelming. Don't go it alone! The disability lawyers at LaVan & Neidenberg, located in Ft. Lauderdale, FL understand the inner workings of the Social Security Administration and will help you navigate the system. Call us today for a FREE legal consultation - 1-888-234-5758.