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October 27, 1999

District takes some pay back

Employees say personal bank accounts tapped into by payroll system

Student slain at MLK High_Dies after surgery; was accosted near school Lawmakers take a minute to tweak city schools

by Yvette Ousley Daily News Staff Writer

More than 200 school employees have learned that what the School District giveth, the School District also taketh away.

The workers' paychecks were electronically deposited into their bank accounts on Oct. 15. But three days later, as the Daily News began reporting disastrous problems with the district's new $26 million computer system, the School District reached back into its workers' bank accounts and took back the money - no warning, no explanation.

"It's outrageous," said Ted Kirsch, president of the Philadelphia Federation of Teachers. "You expect a check, think the money's there and pay your bills."

Some workers have been bouncing checks as a result of the School District's latest blunder. One, said Kirsch, has worked at Olney High School for 20 years.

Consider the case of Rush Middle School teacher Stephen Trois. His $689.75 pay was electronically deposited into his bank account on Oct. 15. Then, on Oct. 18, the money was electronically removed.

Now, Trois says he can't pay his $350 monthly rent, $110 student loan payment or $200 credit card bill.

"I only signed for them to put money in - not take money out," said Trois, who learned from his bank, Fox Chase Federal, that his account had been debited for every penny of his pay.

"I take this very seriously," said Trois. "I'll be taking legal action if I can. I'm going to hang Mr. Hornbeck out to dry. You do not go into someone's bank account without permission."

School board member Jacques Lurie, chairman of the board's technology committee, was enraged when told of the goof.

"I'm extremely distressed that the board's technology committee has had two reports from staff in the last five days and has never been told about this situation," said Lurie. "It's unbelievable."

"If in fact people's accounts were debited incorrectly, in a single case, it's an extremely serious situation."

A top school official blamed the withdrawals on Daily News stories about the district's new computerized payroll and purchasing system, which has caused headaches for hundreds of school employees - past and present. Some have been overpaid, some have been underpaid and some haven't been paid at all. Some dead people also have been paid.

In all, 227 school workers were paid via direct deposit on Oct. 15, then lost their money without warning on Oct. 18.

"Frankly, it was a reaction to the story your paper put out," said Herbert Schectman, the district's acting executive director for financial services. "Because of all the negative publicity we received for paying dead people and retired people, we asked audit services to put together a list of people" who had resigned or retired.

"They put the list together and based upon that information we took the money back."

But 50 to 100 workers who were rightly paid ended up on the list, Schectman said. Others, though it's unclear how many, shouldn't have received the money.

Schools Superintendent David Hornbeck, reached late last night, said the district was prepared to fix the computer foul-up.

"It sounds to me like Mr. Schectman knows the nature of the problem and will correct it," Hornbeck said.

So far, about six of the electronic deposit problems have been corrected, he said. The rest of the workers are still waiting for their money.

District officials said 650 payroll complaints affecting about 900 employees will be corrected by Friday.

Some 3,020 workers will receive adjusted paychecks, officials said. It's unclear whether that number includes people who say their pay was electronically deposited, then removed.

Tom Lombardo, manager of the automated check clearinghouse at the Federal Reserve Bank of Philadelphia, said the School District has a responsibility to repay the workers whose bank accounts were wrongly tapped.

"They got paid accurately. Then the money was taken back," Lombardo said. "They should not have done the reversal and probably should give the money back."

He said "employers can't go in and do unauthorized debiting" to people's personal bank accounts except for certain mistakes.

The district attorney's office wouldn't comment yesterday.

Even if the money is re-deposited to employees' accounts, the district could face liability, according to Charles W. Mooney Jr., interim dean of the University of Pennsylvania Law School.

"Generally, I could well imagine potential liability even if in good faith they properly credited the accounts then improperly reversed the transactions when they weren't entitled to," Mooney said. "It seems to me that if an employee feels they've been disadvantaged they should get legal advice and consult with counsel."

Send e-mail to ousleyy@phillynews.com

-- Homer Beanfang (Bats@inbellfry.com), October 27, 1999

Answers

"They got paid accurately. Then the money was taken back," Lombardo said. "They should not have done the reversal and probably should give the money back."

Gee, duh... Yeah, I think they probably SHOULD!

-- I'm Here, I'm There (I'm Everywhere@so.beware), October 27, 1999.

"A top school official blamed the withdrawals on Daily News stories about the district's new computerized payroll and purchasing system"

Un-Friggin-Believeable!!!! According to a TOP school OFFICIAL, its the newspapers fault for reporting on the snafus. I can just imagine the rest of the sentence running through this "mediocre life-form's" mind.... If the paper had just not reported it or lied, we wouldn't have broken the law and snatched money outta people's bank accounts.

Tell it to a Judge, I hope is the response of every single employee whose bank account was tapped by this group of pond scum.

"Frankly, it was a reaction to the story your paper put out," said Herbert Schectman, the district's acting executive director for financial services. "Because of all the negative publicity we received for paying dead people and retired people, we asked audit services to put together a list of people" who had resigned or retired.

This last quote is not only incredibly arrogant, but I have to tell you, I'm blown away by the stupidity of someone actually saying this to a reporter.

It's enough to make me want do a Milne imitation.

Verdicts in Judge....hang-em!

-- Cary Mc from Tx (Caretha@compuserve.com), October 27, 1999.

Hmmm... this article poses an interesting question... How do dead people deposit checks? If the rational behind debiting the teachers accounts is to get back the money they gave to dead persons, then I guess they are assuming the dead have risen from the grave and are now doing their own banking. Thus have bank accounts to debit as well as the physical ability to deposit checks into those accounts.

After all there is a difference between cancelling a check and withdrawing money from an account that isn't even your

-- Typhonblue (typhonblue@hotmail.com), October 27, 1999.

There was a thread or threads on this some months ago.
Bottom line, if you have automatic deposit, your employer CAN tap whatever he put in, and not just your last check. Read the fine print. And that tapping of your account can be just because the employer is vindictive or dishonest.

DO not sign up for automatic deposit. It's another of these so-called modern conveniences that the banks and so many sheeple are so fond of, but which can bite you on the ass.

Enough sheeple said "bah, bah, bleat" and signed up for this that it has actually become mandatory in some cases. If you are in an automatic deposit setup, withdraw the money on payday, or at least transfer the money to another account on payday, keeping just whatever minimum needed to keep the automatice deposit account open, in that account.

-- A (A@AisA.com), October 27, 1999.