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aggressivefixx

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I have a question in regards to a direct deposit of Social Security. My mother passed away March 2, 2004 and her ss check was deposited March 3, 2004. This payment represents February benefits as ss pays one month in arrears. I was advised by my bank they had returned the direct payment to Social Security as it was deposited after her death.

I talked with SS and they said it was her money since it was for February benefits but she would not received any future payments.

As the bank did not have a reclaimation request, is it legal for them to just tap your account and return funds as they see fit??
 
What's all the concern about? Perhaps they had a computer system in place that warned of checks being deposited after death to prevent fraud. it would seem that all you have to do is speak to the bank and it would be cleared up pretty easily. Not worth any fuss really.

Originally posted by aggressivefixx
I have a question in regards to a direct deposit of Social Security. My mother passed away March 2, 2004 and her ss check was deposited March 3, 2004. This payment represents February benefits as ss pays one month in arrears. I was advised by my bank they had returned the direct payment to Social Security as it was deposited after her death.

I talked with SS and they said it was her money since it was for February benefits but she would not received any future payments.

As the bank did not have a reclaimation request, is it legal for them to just tap your account and return funds as they see fit??
 
Well Freebird, could it be that the funds are needed??? lol

It's easy for one to say it's not worth the fuss, if you don't need the funds, but when you may depend on those, to pay the family's bills for the month, help with funeral expenses, etc., maybe it would be "worth the fuss"

If the bank had an automated system, it should be responsible for that system, and ensuring, BEFORE the funds were "sent back", that it was legit to do so.
 
I misread a bit. I didn't realize that the bank sent the check to Social Security and thought that they sent the check back to our poster. If the bank did that then I'd be furious too but I'd go to the bank and put them on the hook to put out the money. It wasn't their check to send back. The bank can deal with reimbursement if and when it arrives again.

Originally posted by Rathi
Well Freebird, could it be that the funds are needed??? lol

It's easy for one to say it's not worth the fuss, if you don't need the funds, but when you may depend on those, to pay the family's bills for the month, help with funeral expenses, etc., maybe it would be "worth the fuss"

If the bank had an automated system, it should be responsible for that system, and ensuring, BEFORE the funds were "sent back", that it was legit to do so.
 
The bank was notified on the 19th with a Death alert. It did not request the funds to be returned to SS. As SS pays a month in arrears the money should have stayed in the account and any funds received after they were notified on the 19th should have gone back. The bank made a mistake and is unwilling to accept the responsibility for it. I have the funds as I used them for the funeral but the bank wants me to put back the amount they debited to the account. I'm not going to do that. In order for me to correct the situation FOR THEM, I would have to go to the SS office (which is in the worst part of the city where no one wants to go without body guards), fill out paperwork, then SS writes letters to my siblings requesting they sign off and release the funds, then SS would reissue a check split in thirds to me and my 2 siblings, then they would endorse the checks, give to me, and I would redeposit the check. This would enable the bank not to have to take the loss.

I'm just not going to go thru all that when they made the mistake.


I just thought it was quite interesting that the bank could go into your bank account and debit it without notifying you.

Thanks for the replies
 
You may wish to notify the appropriate agency that deals with bank regulation. They will not be happy but if they are wrong, then they really deserve it in this case. I have done that before and put a major federal bank in its place.

Originally posted by aggressivefixx
The bank was notified on the 19th with a Death alert. It did not request the funds to be returned to SS. As SS pays a month in arrears the money should have stayed in the account and any funds received after they were notified on the 19th should have gone back. The bank made a mistake and is unwilling to accept the responsibility for it. I have the funds as I used them for the funeral but the bank wants me to put back the amount they debited to the account. I'm not going to do that. In order for me to correct the situation FOR THEM, I would have to go to the SS office (which is in the worst part of the city where no one wants to go without body guards), fill out paperwork, then SS writes letters to my siblings requesting they sign off and release the funds, then SS would reissue a check split in thirds to me and my 2 siblings, then they would endorse the checks, give to me, and I would redeposit the check. This would enable the bank not to have to take the loss.

I'm just not going to go thru all that when they made the mistake.


I just thought it was quite interesting that the bank could go into your bank account and debit it without notifying you.

Thanks for the replies
 
Most Banks will close an account for deposits and withdrawals if there is a death of the customer. So even if the check was for a pre-death obligation, if deposited post-death, it will be returned. Period.
 
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