Allsup claims that it is USA's first nationwide private Social Security disability claims services company.

Founded in 1984 by a former Social Security Administration representative, Allsup Inc. claims to have helped over 70,000 Americans nationwide receive their entitled Social Security Disability Insurance (SSDI) benefits.

They promote themselves as making the Social Security disability process less confusing, less intimidating and more convenient for people with disabilities. Allsup Inc. claims to have a 97 percent award rate, which if accurate is a vast improvement over the average 33 percent award rate for those who apply without assistance. (St. Louis Post Dispatch letter), (St. Louis Post Dispatch Column), (St. Louis Commerce Magazine Article)

It is claimed that during the early years of the company being in existence that the government unsuccessfully attempted to regulate the company out of business. Today Allsup Inc. claims a positive relationship with both the SSA and also the Administrative Law Judges (ALJ) who hear SSDI appeals. Prior to Allsup Inc. coming into existence all SSDI representation was handled by attorneys. Since Allsup Inc. broke new ground, numerous other companies have started in this fledgling field.

As with all companies in this field, any fees collected are governed by SSA regulations. These regulations require that all fees, including fees paid by insurance companies or other third parties, be pre-approved by the Social Security Administration. [503] Allsup advertises that their services cost individuals nothing unless they successfully collect SSDI for them and when they do successfully collect their one-time fee is 25% of retroactive (back) benefits, or $5,300, whichever amount is less.

Relationships with insuance companies

"Allsup was created to provide long term disability (LTD) insurance carriers with a means to recover overpayment benefits received by their insureds from the SSA. Typically, disabled employees receive LTD benefits immediately from their insurance carrier. The employees may also file claims for social security benefits, but the SSA often takes up to one year to determine eligibility. If the employees are eligible, the SSA issues a retroactive lump sum to the employees to cover the benefits owed as of the day of the application. The SSA may also award benefits on a going-forward basis. The employees, however, cannot legally assign the right to receive this payment, which is owed by contract to the LTD carriers as an offset. Allsup made available a system to assist LTD carriers recoup the money owed through a process known as "overpayment recovery." To effectuate the recovery, LTD carriers referred their insureds to Allsup, which required them to execute a pre-authorized electronic withdrawal of funds. These contracts allowed Allsup to transfer the money received from SSA back to the LTD insurers almost immediately after the insureds received their funds. Allsup claims to have spent more than one million dollars creating its particular system, known as 'Seamless ORS.'" Allsup, Inc. v. Advantage 2000 Consultants, 428 F.3d 1135, 1136-1137 (8th Cir. 2005).[504]

Social Security Policy

"Section 207 of the Social Security Act (42 U.S.C 407) states: “The right of any person to any future payment under this title shall not be transferable or assignable, at law or in equity, and none of the monies paid or payable or rights existing under this title shall be subject to execution, levy, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law.”

In 1983, subsection (b) was added. It states: “No other provision of law, enacted before, on, or after the date of the enactment of this section, may be construed to limit, supersede, or otherwise modify the provisions of this section except to the extent that it does so by express reference to this section.” Social Security Policy Site GN 02410.001 Assignment of Benefits

"A company that is paying long-term disability (LTD) benefits to a claimant requires the claimant to file for Social Security benefits. If the claim is allowed, the LTD benefit amount is offset by the amount of Social Security benefits received. As an incentive to induce the LTD insurer to refer claimants, a claimant’s representative offers to assist the insurer with recovering the overpayment made by the insurer to the claimant."

"At the representative’s request, the claimant agrees to grant the representative pre-authorization to withdraw funds from the claimant’s bank account if SSA allows the claim and awards the claimant past-due benefits. The representative then transfers those funds to the LTD insurer to satisfy the overpayment."

"This arrangement is contrary to Section 207’s prohibition against assignment. The money SSA deposited into the claimant’s account is still identifiable as Social Security benefits when the representative, acting on behalf of the LTD insurer, transfers funds from the claimant’s account in order to satisfy an obligation to a third party (i.e., the overpayment of LTD benefits)."
Social Security Policy Site GN 02410.001 Assignment of Benefits