Recently, most of the Social Security questions I get are about what’s probably the biggest change to Social Security in years: the move from paper checks to electronic fund transfer (EFT). If you receive Social Security or SSI, then you already know what I’m talking about. Except in a few special circumstances, everyone has to switch over to direct deposit and paper checks are no longer being sent out.
Naturally, a change this big has caused headaches for a lot people—I know because, as a Social Security disability attorney, I get to hear about all of them! People want to know why the government pushed so hard for the change and whether they need to be worried about anything.
Why Switch to Direct Deposit?
According to a House hearing this past September, it all boils down to money. While processing each paper check can cost the government as much as $1.05, direct deposit is a much more affordable 9 cents per person. More than $600 million has already been saved, so it’s hard to argue with their logic on this one.
Other reasons include the fact that thieves can’t steal direct deposit like they can paper checks, and that it’s easier to confirm that direct deposit payment have been received because there’s a clear deposit record. Still, there are problems.
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Problems with Direct Deposit
Sure, thieves can’t steal paper checks anymore, but identity theft might increase because now all they need is a person’s account info. With this, they can simply change the victim’s address and have all money and correspondence sent to them. Lawmakers are talking about continuing to send correspondence to the old address, as well as delaying any account changes until they are verified, but people need to be educated about not giving out their account information.
As a Social Security Disability attorney, the bigger problem to me involves those people who need to fill out a waiver so that they will continue receiving paper checks. These people tend to be older and living in remote locations where they can’t access an ATM to get their money.
It seems obvious that they should simply keep getting paper checks, but in order to do so they are required to have a form stamped by a notary. Unfortunately, many people don’t have one close by. All of these are reasons why you should have a Social Security disability attorney on your side. Download our free ebook to learn more or contact Texas Social Security Disability Claims lawyer, Marc Whitehead at 800-562-9830.
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