Lawsuit Filed to Prevent Halted Social Security Disability Payments

March 26, 2014

Many Social Security Disability Recipients have third-party companies control distribution of their benefits because their conditions leave them unable to manage their own funds. Now, roughly 1,000 Social Security recipients are at risk of losing benefits if they do not find a new third party to manage their accounts.

An article from the Willamette Week explains the problem started last week when federal investigators seized computers and data from Portland-based company, Safety Net, that oversees the distribution of Social Security Disability benefits to thousands of the city’s residents. Officials believe there could be a problem with the way the company is handling accounting, but company executives say the issue is a computer glitch and that all money is accounted for.

In the meantime, the company’s customers could lose vital benefits if they do not find a new third party vendor. An estimated 300 recipients have done so, but tracking down the other roughly 700 is proving difficult, as many are homeless or near-homeless.

In order to put a stop to the loss of benefits, some of the claimants have filed a suit to prohibit the Social Security Administration from stopping payments.

The Social Security Disability Lawyers with Fleschner, Stark, Tanoos & Newlin are hopeful a resolution to the issue can be found that will satisfy the needs of both sides.