Problem with Representative Payees

May 25, 2016

Social Security’s Office of Inspector General (OIG) recently issued a report on the agency’s efforts to police organizational and volume representative payees. Representative payees handle funds for claimants who are judged to be incapable of handling funds. The report talks about abuses by some of these larger rep payees.

Social Security does not always obtain reimbursement from abusive rep payees. The agency may also allow a rep payee who has misused funds to continue to serve in their capacity as a rep payee. This may appropriate if the misuse was minor and/or unintentional. The agency is supposed to reimburse claimants who are the victims of rep payee abuse but in my experience, claimants are not receiving this relief.

Representative payees have always been and will always be a problem area for Social Security, according to blogger Charles Hall.  It’s difficult to find people to serve in this capacity and SSA has limited capacity to address the issues.

 

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