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Wednesday, August 12, 2009

$500-million settlement reached in suspension of Social Security benefits

Up to 200,000 people who were cut off on unfounded suspicions that they were felons evading law enforcement or prosecution will receive back payments.
Legal advocates for the poor, elderly and disabled secured a $500-million class-action settlement Tuesday for as many as 200,000 people whose Social Security benefits were suspended on unfounded suspicions that they were fleeing prosecution.
The suspensions, dating back nearly a decade in some instances, were ordered in cases of mistaken identity or outstanding warrants for offenses such as bounced checks or traffic violations.
"Virtually none" of the Social Security recipients who were cut off after their names were matched with those in a computerized warrant database were felons using their government benefits to evade law enforcement or prosecution, said Gerald McIntyre, an attorney for the National Senior Citizens Law Center. LinkHere

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