Department of Labor Acknowledges Unemployment Checks Are Bouncing

By VI Consortium,

US Virgin Island residents earlier this week were reporting to the Consortium that unemployment insurance checks provided to them by the Dept. of Labor were worthless.

One resident, whose check was for over $300, said he realized the check had bounced Tuesday. "People here suffering and you're telling me they are sending out checks and don't have any money in the account," he said.

Another resident said via Facebook message, "My unemployment check bounced and now my bank account is in the negative. It’s really hard in a time of need."

A third person, also through the Consortium's Facebook platform, said, "Two of my checks bounced from the Dept. of Labor."

In a release Thursday, D.O.L. said it met with bank representatives "to further ensure that payments made to unemployment recipients are being honored."

The department explained that checks bounced because D.O.L. did not replenish accounts before unemployment insurance beneficiaries attempted to clear the checks. 

"There were reports of a timing issue, with the settlement of the draw made by V.I.D.O.L. and the transmission of funds to the bank, that affected the clearing process. Some checks deposited from banks other than Banco Popular may have incurred some issues," D.O.L. said.

"Bank representatives advise the department that individuals who are affected should retain and redeposit those checks," the department concluded.