Va Taking Money Out Of Your Bank Account Question

[tssnave]

Just how far is the VA's reach into your banking?

I know I've read about the VA taking money out of the account that they put the money into and it seems that years ago Free Spirit** wrote in a post that the VA took money out of another account that she had at the same bank that her husband's VA payments went to even though the husband was not on that account.

1. Has anyone else had the VA take money out of their account?

2. How about another account at the same bank that is NOT the one their VA check goes into?

3. Has the VA ever gone into accounts held in another bank where they do NOT deposit your VA check?

4. If not yourself, had you heard firsthand from someone who has had this problem?

5. **If Free Spirit is not the member who wrote about her banking issues with the VA after her husband passed away, does anyone remember who it was? They would have been posting in 2006/2007.

Thanks,

TS Snave

[jerrbilly]

Never had it happen to me or ever heard of it happening but it doesn't mean it hasn't happened.

I don't see how they could do that.

Jerr

Just how far is the VA's reach into your banking?

I know I've read about the VA taking money out of the account that they put the money into and it seems that years ago Free Spirit** wrote in a post that the VA took money out of another account that she had at the same bank that her husband's VA payments went to even though the husband was not on that account.

1. Has anyone else had the VA take money out of their account?

2. How about another account at the same bank that is NOT the one their VA check goes into?

3. Has the VA ever gone into accounts held in another bank where they do NOT deposit your VA check?

4. If not yourself, had you heard firsthand from someone who has had this problem?

5. **If Free Spirit is not the member who wrote about her banking issues with the VA after her husband passed away, does anyone remember who it was? They would have been posting in 2006/2007.

Thanks,

TS Snave

[carlie]

2. How about another account at the same bank that is NOT the one their VA check goes into?

3. Has the VA ever gone into accounts held in another bank where they do NOT deposit your VA check?

TS,

I would ask my banking institution about this.

I personally don't see a legal reason VA or SSA could fiddle

with an account that they have had no prior authorization

to touch in any way.

jmho,

carlie

[jbasser]

Folks there is a need to read the small print on the application for Direct Deposit. Anyone that deposits electronically by las has the legal right to do a reversal. It happened to me but It was not the VA.

Here is the reg covering revocations.

31.cfr 210.4 revocation

J

Edited January 13, 2010 by jbasser

[tssnave]

J - I understand if you have direct deposit w/ anyone they can do a reversal w/ that account. Thanks for the citation, I'll print it and read it.

Carlie -

I agree w/ you re: I personally don't see a legal reason VA or SSA could fiddle with an account that they have had no prior authorization to touch in any way," that's what I would have thought but it is my recollection that Free Spirit (or some other widow) posted that when they took out her husband's VA after he passed away, when they couldn't get it all from their joint account that they took it from an account she set up in her own name after her husband died and took it out of that account.

I am hoping that Free Spirit, and if I have the wrong member whoever it was that posted her horror story in 2006/2007 will reply to this thread and clarify the issue.

Thanks,

TS

Edited January 13, 2010 by tssnave

[free_spirit_etc]

Ahh -tssnave - good to see you! :(

Yes. That was me! And yes. The VA reclaimed money from my bank account. And no, it wasn't the same account they put it in.

I opened an individual account at the same bank that my husband and I had the joint account at. I later closed the joint account. After that, I noticed there was a hold on some funds in my bank account (May 2007). No one at the bank could tell me why the funds were being held. Finally someone did some research and found out the VA was holding the funds.

The funds were my husband's month of death payment - that had been deposited into the joint account - that was no longer open.

The month of death payment - you know - the payment the widows are entitled to - the one that the VA explained they missed with some widows - because of the "glitch" in their system didn't inform them that there was a widow for some claims.

Not sure how that applied to me. I called the VA because I did get the letter the VA says the "glitch" kept them from sending to some widows. On my first call I was told the widow doesn't get the month of death payment; that there is no such thing. Hmmm. Then on another call I was told that I was entitled to keep the payment - and all I had to do was send in a statement asking to be allowed to keep the month of death payment.

Of course, I told the VA person that the instructions said SHE was supposed to fill out a certain form (VA Form 119), indicating that I was the widow, and entitled to keep the funds. But she told me that was an "In House" form (Yes. In house - as in SHE was supposed to fill it out) - and she instructed me to send in a statement of case instead.

When I found the VA had the block on my account - the bank told me the VA could hold the funds - even in a different account - because I had been a joint holder on the account that the VA had deposited the funds in.

You know, I am still not certain about that. The thing that gave the VA the right to freeze or reclaim the funds was the direct deposit slip that my husband signed. That gave the VA the authority to take funds from THAT account. And according to the bank - that would apply to ANY account at that bank.

That would NOT give the VA the authority to freeze or reclaim funds from an account at a DIFFERENT bank. Just that one.

Now - if you owed the VA money - they do have ways to be able to come after other bank accounts. But they would have to give you a chance to pay the money first, get an order to garnishee your account, etc. That is not so with the account they had put the money into (or apparently the money in any OTHER account at the same bank - and apparently even the other accounts of joint owners.)

In those instances - the VA apparently has the right to take the money back out without even informing you that you owe them anything first. It is basically a matter of who get to hold the money while it is being decided who the money belongs to. If the VA can find money in an account at the SAME bank - they can take it - and THEY get to hold the money while it is being decided. If there is no money at the SAME bank - then YOU get to hold the money while it is being decided - and AFTER it has been decided, you have to pay the VA back IF it is decided they owe you.

When I finally found out it was the VA who froze my funds, I called - and was informed there was no record that I was the widow. I sent in ANOTHER copy of our Marriage License (as well as pointing out that I was LISTED as the Widow right on the Death Certificate).

However, they did not lift the freeze. They also did not take the funds for MONTHS. They didn't take the money - they just froze it. My account kept showing I had the funds in my account but that I could not USE them. Grrrr.

That complicated things - because when I asked to be paid to Month of Death Payment - they told me they couldn't release the hold - that they had to RECLAIM the money - and then send me a check. But they couldn't send me a check, because they had not reclaimed the money (though I couldn't spend it).

They finally reclaimed the money in August 2007.(My husband died in February 2007 ). I did NOT get anything from the VA when they reclaimed the money (or when they froze it). I did get a notice from the bank when the VA reclaimed it (though not when they froze it).

I then asked to be paid the Month of Death payment. I was informed that the DIC claim had to be decided first.

In May 2008, upon receiving a copy of the C-file, I found a Finance Operations transmittal sheet in my file, dated June 28, 2007 that states, "Surviving Spouse entitled to one time payment of amt of comp or pen received by veteran at time of death. Remove overpayment (08E Transaction) if payment is not returned. 38 CFR 3.20©"

I sent an Inquiry May 2008 asking to be repaid the funds that were taken from my bank account in error, because the VA reclaimed the money AFTER Finance Operations was instructed to RELEASE the hold.

The VA responded that my request had been forwarded, and that I would be receiving a letter addressing the issue. I never received the letter.

In January 2009, I submitted an inquiry through the Survivors Month of Death Benefit link,(created after the "Computer Glitch" that kept widows from being paid the Month of Death payment was discovered) asking to be paid the month of death benefit for my husband’s death. Though I received an automated response that my inquiry had been routed to the 'VBA NASHMOD' group, I did not received any response to the inquiry.

I finally requested the assistance of my Congressman. I was repaid the money at the end of February 2009.

So once they take the money - even if it is in error - it can take a LONG time to get it back.

Free

Edited January 13, 2010 by free_spirit_etc

[free_spirit_etc]

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