If this topic is out here, I sure can't find it...

If I'm a Rep Payee for someone, can I initiate a loan in their name? If yes - or no - could someone shoot me a link to the reference on the topic? Thanks.

And there's a very good reason .... a representative payee cannot pledge the beneficial owner's account as collateral, and cannot borrow on behalf of the beneficial owner. The representative payee's only role is to receive and manage Social Security benefits on behalf of the beneficiary.

Thanks, John - and I agree. Then I see the statements in the SS Rep Payee Guide (http://www.ssa.gov/pubs/EN-05-10076.pdf) saying:

"Use the money for payments on a house owned by the beneficiary." and "Use the money for monthly car payments as long as the car is used for and owned by the beneficiary." It implies a loan/contract exists.

How would you interpret that?

Beneficiary could have obligations, maybe things arranged for previously (perhaps an accident resulted in their inability to manage their funds going forward), or housing related, the rep payee only has the ability to use the funds to pay the bills, not to incur new ones.

Perfect - thank you!

What if a borrower wants to take out a loan or apply for a credit card, but they have a representative payee for the SSN? Can we decline for that reason or do we have to consider that income in their ability to repay?

I'm assuming you mean the loan applicant has a representative payee appointed on their behalf. That does not necessarily mean the person is legally incompetent, but it does mean they do not have control over that income stream.

Bringing this thread back to life because we have had some issues lately....

If a person has a rep payee appointed by social security, can this reason be used to deny an application? I know that the rep payee status does not mean that the person is legally incompetent, but if they do not have access to their money, then how do we know that the payments will be made?

The borrower, if deemed capable of entering into legally binding loan contract, still would not have control over these funds. So, unless they had other income over which they had control, you have no income to calculate a DTI on. You would deny them on that basis and not on the basis that there was a representative payee.

Thank you!