I've got an $8K Social Security check and I can't get to the money!

Miscellaneous and Personal Stuff I Must Share
1

I was recently approved for Social Security disability. I’ll be receiving about $700 a month, direct-deposited onto my Walmart Money Card.

Despite the fact that the Social Security Administration bloody well has my direct deposit information, they sent me a paper check for my SS back pay, which comes to a little less than $8,000. And I can’t do nothin’ with it!

The first thing we attempted was to deposit it at Walmart. Nope: They can’t take checks above $5,000. They can’t even deposit $5K and give us the rest back in cash; their system automatically rejects any amount over $5,000, so they say.

We tried taking it to BB&T bank, where our landlady has her account. After depositing our rent money directly into her account, we asked if we could cash the Social Security check, and they said no, not without setting up a bank account there-- and even then, it would take 7-10 business days for the funds to clear. We can’t set up a bank account because several years ago, I overdrew two or three bank accounts and haven’t paid them back yet (including one at BB&T), and banks share that information with one another.

We can’t sign it over to our landlady and have her PayPal it back to us, either: Social Security checks can’t be signed over to a third person.

The only alternative we can think of is one of those scum-sucking check-cashing places, which would likely demand a decent percentage of the check as a fee. I suppose we’ll do that if we absolutely have to, but that’s a last resort.

We’re going to go to the Social Security office in town tomorrow and see if they have any suggestions. Dammit, this check should have been direct-deposited in the first place!

So, I turn to the Dope. Any ideas?

2

Is your overdraft more than $8000? Your best option is to get that cleared up.

What’s better: a check for $8000 that you can’t use for anything but a bookmark, or $3000 you can actually use?

3

Gah, something very important I forgot to mention:

The plans for the money. We’re gonna use the $8K as a down payment on a car. $8K is the lowest amount they’ll accept.

4

I assume by you writing “we” that there is more than one of you here. Did all of you overdraw bank accounts? Credit info shouldn’t carry between people, so maybe one of you could set up an account.

5

I have two questions.

(1) Why can’t you sign over the check to the car seller? Do it at their bank.

(2) [for my own nosy curiosity] My car is almost 10 years old, so I’m way out of date here, but is there a reason you need this particular car rather than a cheaper alternative? I’m pretty sure you can buy a decent used car outright for $5000.

6

What kind of car are you buying??

What kind of savings do you have?

for about 3 grand you can pick up an excellent low miles Lexus ES300 that will take you where you want in style and is essentially bulletproof from a reliability standpoint. Please tell me you aren’t buying some blingy BMW or gas guzzling SUV.

If you cannot afford to have a checking account, you should NOT be buying an 8K used car. It has nothing to do with whether you are worthy, its just ridiculously bad money management.

Throw that money into an IRA unless you are already in your 60’s.

7

Yeah, I’m going to weigh in on the car, too. There seem to be some money management difficulties here, and an expensive car (plus registration plus the full coverage insurance required when the bank owns it) seems like asking for (more) financial trouble.

8

Have you even tried to open a bank account? Or are you just assuming you can’t open one because you made some mistakes a long time ago? Chexsystems records only go back 5 years, and different banks have different rules. A local credit union would almost certainly be happy to open an account for you, especially if you have your SS checks direct-deposited into that account.

9

You could call a disability lawyer and see if they can help you , can you sign the check over to a family member you can trust and have them deposit it in their account . Then have them made out checks that Walmart will accept . I personally would never use Walmart for my bank !

10

Bolding mine. Do not do this. It’s one of the classic ways to discover that a family member isn’t trustworthy, and it’s an expensive lesson. (Edit: or reliable. Often the intentions are good.)

11

Friends:

12

I gotta agree with everybody else.

You’re using that $8000 as a down payment on a car?
What are you going to make car payments with?
Walmart gift cards?
Incredibly bad plan.
Use that check to set up a legit bank account and start being happy and not robbing Peter to pay Paul.

13

Google for “banks that don’t use Chexsystems” and you might get a lead on some banks where you might be able to open an account.

In the olden days, signing over a check to somebody else was a simple solution. Unfortunately, times have changed. Many (most?) banks are reluctant to accept third-party checks for deposit into personal accounts, especially federal government checks. If you want to go this route, go with the relative to the bank and do not sign anything until you have confirmed with a banker that the relative will actually be able to deposit the check.

Before somebody quotes a section of the UCC about indorsements [sic] and negotiable instruments, please note that what it says is that a bank MAY be able to accept such checks, nowhere does it say a bank MUST accept such checks.

14

I forgot that , then I think the OP should think of talking to a disability lawyer , it can’t hurt to see if one can help them.

15

You’d be surprised at the services that Walmart offers for the unbanked. The Walmart Money Card includes online bill pay services and even lets users write paper checks.

16

That will cost a lot more than just going to a check cashing store and paying their fee.

17

I don’t think that is actually true. If it were, check cashing stores and merchants would be unable to accept SS checks. It is probably an internal rule at the bank(s) where they tried to cash it. It is a very common bank rule.

And, as with most cases where a customer is upset with a bank’s rule, their standard reply is “Sorry, it’s a government regulation, nothing we can do about it.”

18

For those who are worried about our choice of car (it’s me and my mother, by the way), it’s a 2011 Toyota Prius. I believe the total price will come to $13,000 or so, and our monthly car payment will be around $200-- easily doable now that I’m getting $700 a month on top of Mom’s $1200. So we’re not going out and getting a BMW or anything.

19

I’m puzzled by where the check would have been direct-deposited if not a bank account. Why can’t you deposit the check in whatever account the funds would have been direct-deposited?

20

I’d look into banks with “second chance” accounts. Most have a small monthly fee, and after a certain length of time of “good banking” (no overdrafts, direct deposit) graduate to a normal account. PNC Bank used to offer this at some branches, as well as some Citizens Bank branches.

It’s being deposited in a WalMart account. They don’t accept checks over $5000