Workers' compensation claims in Florida were typically paid out by direct deposit or by issuing a check. For most injured workers, this has been an acceptable method to receive their workers' compensation payments. However, there has been a class of injured workers who either have trouble opening a checking account and have trouble cashing a paper check because they don't have a checking account. The law change enacted in 2011 provided a third way to distribute claims. This newer way is through a prepaid card that acts like a debit/credit card. Here is an overview of why some workers have problems with checking accounts and paper checks and how a prepaid card solved those problems.
ChexSystems
Most banks use a company called ChexSystems to help them determine if you are eligible to open a checking or savings account. ChexSystems serves as a credit reporting agency for banks to alert them to potential customers who have a checkered past when it comes to maintaining a bank account. Chex Systems gathers information from banks all across the United States and if your name appears on their system, you will typically not be allowed to open a transactional account (like a checking or savings account) at most banks for at least five years. If you are on ChexSystems, you cannot open a bank account at most banks and the Workers' Compensation Department cannot use the direct deposit option to pay you.
Paper Checks
Paper checks are difficult to cash if you don't have a checking or savings account. Banks are required through legislation like the federal Patriot Act to know who they are dealing with and won't cash, or accept for deposit, a check issued to a non-customer. If you are on ChexSystems, you won't be able to establish a relationship. You can go to a cash checking facility provided you have the right type of identification like a driver's license and a state issued photo-ID, which you may or may not have. Check cashing places also charge a fee which reduces the amount of money you will receive.
Prepaid Card
The changes in the law allowed the Workers' Compensation Department to use prepaid debit/credit cards to distribute benefit payments to those who can't open a checking or savings account or those who don't wish to open a bank account. The money is deposited to the card on a bi-weekly basis and you can withdraw it at an ATM or use the card as a credit card to purchase items, although it is not actually a credit card since it deducts funds directly from the deposit and you will not be billed for credit purchases.
If you had a workers' compensation claim in the past and had trouble accessing your benefits, the law change has made it easier for you to access your benefits payments if you have a new claim in the future.
Contact a law firm like Lovett Schefrin Harnett if you have specific questions about receiving proper compensation.
