Direct deposit of fees in social security claims to the claimant's representative rather than the issuance of a check which is mailed to the attorney creates ethical problems for the attorney. Problems exist now for those lawyers who accept direct deposit payments because the claimant on whose behalf the payment is made often cannot be identified. Banks do not identify the name of the claimant but rather simply indicate that a deposit has been made from the Treasury. The internal accounting problems this causes are significant and are time-consuimg to resolve.
I sometimes would be overpaid in a claim if I accepted the full amount of the fee check sent from Treasury. In those cases, where a check represents payment to me as well as payment to a client, I am ethically required to deposit that check in my trust acoount and then write the client a check for the amount I consider to be an overpayment and a separate check to the firm for the proper fee. I cannot tell, prior to receiving the check, whether such a refund to the client is proper.
I ask that payment of fees to attorneys remain as it is now with the attorney having the option as to the method of payment. Ethical rules vary from state to state but WV requires that a clear paper trail exist with respect to the payment of fees. Direct deposit will not allow that trial to exist as clearly as is needed.
Comment on FR Doc # 2010-14614
This is comment on Proposed Rule
Management of Federal Agency Disbursements
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