Read more: Local, State, National, Economy, Community, Chrysler, Compensation, Checks, Money, Funds, Bounced, Workers, Sedgwick, Insufficient, Bankruptcy
TOLEDO -- Tony Sosbe is recovering from recent back surgery. He's on sick leave from the Jeep Assembly Plant. He says his situation is even worse because his benefit checks from Chrysler have bounced.
“Wiped us out clean, we haven't even got a dime to our name," said Tony Sosbe.
His wife, Barb, says because of the overdraft protection on their account -- the company that cuts the checks, Sedgwick, withdrew all of the money they've paid them in the past year totaling more than $15,000.
”Now at this point, I owe the bank, according to the bank $9,000, said Barb Sosbe.
Chrysler spokesperson Mike Palese said to me on the phone today, "We are working very hard to re-issue those checks. Everyone who was affected should get them very shortly."
He says Chrysler ordered a stop payment on workers’ compensation checks because they could not honor them without permission from the bankruptcy court. The judge approved it at noon on Friday...but for hundreds like the Sosbe's, it was too late.
”I had insurance payments that were directly withdrawn from my account set-up on that. Those didn't go through. I have to answer to all of this,” said Barb Sosbe.
Chrysler is suggesting those affected work with their bank and explain the situation to alleviate any fees or penalties.
We called Fifth-Third Bank and they told us they've not been notified or heard anything from Chrysler.
Tony says he doesn't even know how he's going to pay for his medication.
”I don't know...ask my kids for money.”
Chrysler said they are drafting a letter to explain what happened. Workers will be able to pick this up at the Human Resources department to take with them to their local bank branch.
Sedgwick Claims Management Services, Inc.
Statement for NBC 24 Toledo on Chrysler Workers’ Compensation Claims
May 11, 2009
Officials of Chrysler LLC have confirmed to Sedgwick Claims Management Services, Inc. that the bankruptcy court has approved Chrysler’s request for permission to resume payments of pre and post-bankruptcy petition workers’ compensation claims.
Chrysler has also provided instructions to Sedgwick CMS regarding the manner in which we should proceed. Those instructions include the authority to reissue checks to replace those on which payment was suspended as a result of the bankruptcy petition.
Accordingly Sedgwick CMS today resumed payments of those claims in accordance with the instructions of our client Chrysler LLC and the terms set forth by the bankruptcy court.
