Pinellas Firefighters Broke After Payroll Company Removes Funds From Their Accounts
Firefighters with Pinellas Suncoast Fire Rescue have been spent the last week scrambling to get their finances in order after a payroll company made unauthorized withdrawals from their bank accounts.
Some of the firefighters say their checking accounts were totally depleted, creating a slew of problems with bills, rent, and other payments due at the beginning of the month.
When New York-based payroll processor MyPayrollHR went belly up last week, it created a domino effect of financial problems for its 4,000 clients nationwide, including PSFR.
Last Thursday, all employees saw their most recent direct deposit disappear from their accounts. The following day, the same amount was removed from employees’ accounts again.
“It was an illegal, unlawful, unauthorized removal of money from their account,” said PSFR finance director David Martin.
While documents establishing direct deposit allows MyPayrollHR’s contracted bank, Cachet Financial Services, access to bank accounts for the purposing of depositing paychecks, Martin said it does not give the bank authorization to take money out.
Martin called this an “unprecedented” event.
“To me, this is a historic event in the country,” he said. “It’s never happened before that I know of.”
The debacle has left Martin busy putting out a fire of his own: figuring out how to get his employees their money back, and finding a way to continue paying them without a payroll processor.
“We’ve got a lot of young guys here who work paycheck to paycheck, and they’re hurting,” Martin said.
Many of the firefighters were slammed with nonsufficient fund and overdraft fees, as well as other penalties.
“My account for a period of two days was showing a negative balance,” said assistant chief John Mortellite.
Mortellite added that firefighters endure enough stress in their work lives, without needing the added pressure from financial troubles. One of his firefighters was in the process of buying a home for his family, but was flagged and denied a loan when his bank account was drained.
After working with their various financial institutions, Martin said as of Thursday some, but not all, of the employees had their money reinstated by their bank or credit union.
MyPayrollHR is now under investigation by the FBI, according to the bureau’s Albany office.
PSFR also filed reports with the New York State Attorney and the Pinellas County Sheriff’s Office.
Source: WFLA
