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Connecticut Court Awards $200,000 to Former CU Employee Over Seized Social Security Benefits

State judge rules that Wallingford Municipal Federal Credit Union stole protected benefits to repay defaulted loan.

By Peter Strozniak | Updated on August 21, 2013

Naomi Odell, a former accounting clerk for the $18.6 million Wallingford Municipal Federal Credit Union, has been awarded more than $200,000 after a state judge ruled that the Wallingford, Conn., cooperative committed “statutory theft” in seizing the woman’s $13,801 Social Security disability benefit and using it to repay a loan she and her husband defaulted on.

After a three-year court battle, Connecticut Superior Court Judge Robin L. Wilson in a 72-page ruling released Aug. 8 said the credit union’s move against Odell’s benefits were illegal because Social Security is exempt from debt collection.

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Peter Strozniak

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