Beware: Social Security Is Demanding Money Back Due To Their Own Errors!

OneEyedDiva

OneEyedDiva

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New Jersey
This is not a scam. I hope none of us ever gets one of those letters. SSA is demanding that people pay back money they were erroneously overpaid through no fault of their own. Having to pay back thousands of dollars unexpectedly has been devastating for those who were contacted by the agency. One poor woman sold her home after she was informed that she owed $121,000! She was only getting $900 a month to begin with! She was afraid the agency would come after everything she had. I first saw the news about this on GMA. Watch the news clip here: Social Security agency demands money back from overpayments
 

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If it is real, one simply needs to see how they collect it. Never send it money. The govt. would need to sue you to get it. Then you would know it was legit.
 

Devi said:
I watched the video, but it was unclear (at least, to me): was the woman actually paid $121,000 over what she should have received?
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No, it wasn't made clear. I wondered the same thing, especially since she only received $900 a month. She would have had to collect that amount for 11 years to equal $121,000. I couldn't determine her age, so wonder how long she was collecting for.

@ohioboy This is indeed a real problem. The report says the SSA has overpaid by billions of dollars and now they are trying to recoup it. I would imagine anyone who is savvy would contact their SS office directly about the situation before paying anything.
 
This kind of thing usually happens when a relative passes away but the caretaker keeps receiving the relative's checks and they wind up spending the money. Their excuse is, I called SSA but the checks just kept coming. Ya, one call should have cleared it up.
 
It happened to my mom after my dad died. I don't remember all the details but after dad died SS said her benefits should have been reduced but weren't. After a few years SS figured it out and came after her for the over payment.
 
Judycat said:
This kind of thing usually happens when a relative passes away but the caretaker keeps receiving the relative's checks and they wind up spending the money. Their excuse is, I called SSA but the checks just kept coming. Ya, one call should have cleared it up.
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But that's not the case with these recipients. Spending someone else's checks is fraud, these take backs are due to SSA miscalculations. They are punishing others, particularly those who can least afford it, for their mistakes.
 
Wow, that is scary. They make a mistake, and then you suffer the consequences. I wonder what they would do if you simply refused to pay. Even if they put a lien on your home, they couldn't collect it as long as you live there. Also, if your home is in a trust, they may not even be able to do a lien. I don't know.
 
bobcat said:
Wow, that is scary. They make a mistake, and then you suffer the consequences. I wonder what they would do if you simply refused to pay. Even if they put a lien on your home, they couldn't collect it as long as you live there. Also, if your home is in a trust, they may not even be able to do a lien. I don't know.
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Those are good questions Bob. I imagine people would be too intimidated and afraid to outright refuse to pay. But the reporter mentioned ways that one could either appeal (the couple featured had their appeal denied), have the payment waived or if necessary, work out a payment plan. I knew trusts protect assets but didn't know they'd do so when it comes to government agencies. I know nothing about the rules involving liens.

You're right...it is scary, because it could happen to any of us.
 
I found this on MSN news regarding the latest clawback of $21 Billion:

“Records show the majority of the overpayments are from Supplemental Security Income – or SSI – beneficiaries who exceeded asset or income limits. Those beneficiaries are retirement-aged, low-income, and/or people with disabilities.”
 
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OneEyedDiva said:
Those are good questions Bob. I imagine people would be too intimidated and afraid to outright refuse to pay. But the reporter mentioned ways that one could either appeal (the couple featured had their appeal denied), have the payment waived or if necessary, work out a payment plan. I knew trusts protect assets but didn't know they'd do so when it comes to government agencies. I know nothing about the rules involving liens.

You're right...it is scary, because it could happen to any of us.
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I just looked it up, and a lien can be placed on a property in a trust. However, at least it wouldn't be collected till you die, so I guess the upside is that you still wouldn't have to pay it at this point in your life. That seems logical anyway.
 
ohioboy said:
If it is real, one simply needs to see how they collect it. Never send it money. The govt. would need to sue you to get it. Then you would know it was legit.
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This sounds very much like the Australian scandal known as robodebt. The government devised a scheme of debt recovery involving a faulty (and illegal) algorithm. Recipients of pensions and unemployment support were notified that they owed the government money and quite soon after the matter was handed over to private debt collectors who hounded the so called debtors. Suicides occurred.

After an extensive inquiry into the practice some money was returned but not all of it.
 
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If this is actually true and not a scam, why can't the government just reduce your SS payment by a small amount each month until the overpayment is taken care of?

Also, how can the government afford the proposed student loan forgiveness? Maybe it's on senior's backs.
 
Chet said:
If this is actually true and not a scam, why can't the government just reduce your SS payment by a small amount each month until the overpayment is taken care of?

Also, how can the government afford the proposed student loan forgiveness? Maybe it's on senior's backs.
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It would be very difficult to claw back £121.000 in small increments from a social security benefit... that would take forever.

If someone is getting a whole load more money than they expected to be getting then they need to pay it back... if however they were told that their benefit was a certain amount from the start.. ie £900 per month, and this was paid for years.. and then the SS realised this was an overpayment and should only have been £600, then that should never be the recipients responsibility
 
Liberty said:
The video states the woman that received the $900 a month was a postal worker. Postal workers do not normally received Social Security benefits: Compensation and Benefits - Careers - About.usps.com
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They can receive Supplemental SS benefits if their hours are reduced due to a disability, though. But the supplemental benefit is a partial benefit. Maybe she was collecting full SS amount plus using the medical benefits, too.

Still doesn't add up, though. But I saw a story about a guy who defrauded EDD's COVID Relief benefits to the tune of $1.5million or something like that. It was over a million bucks, as I recollect.
 
hollydolly said:
It would be very difficult to claw back £121.000 in small increments from a social security benefit... that would take forever.

If someone is getting a whole load more money than they expected to be getting then they need to pay it back... if however they were told that their benefit was a certain amount from the start.. ie £900 per month, and this was paid for years.. and then the SS realised this was an overpayment and should only have been £600, then that should never be the recipients responsibility
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I totally agree! Also If you have gotten the same amount for years and have your SS letter stating what your amount should be then a spouse passes away and you report it and you keep getting your deceased spouses SS then call again and again and don't spend that money.Your asking for trouble.
If you suddenly get an unexpected raise call SS ask questions, we all know right from wrong and in many cases it is the SS recipients fault for knowingly keeping what they know is a mistake.

I know SS makes mistakes too but it is up to us to make sure they correct their mistakes are we pay the price.
 
perplexed said:
I totally agree! Also If you have gotten the same amount for years and have your SS letter stating what your amount should be then a spouse passes away and you report it and you keep getting your deceased spouses SS then call again and again and don't spend that money.Your asking for trouble.
If you suddenly get an unexpected raise call SS ask questions, we all know right from wrong and in many cases it is the SS recipients fault for knowingly keeping what they know is a mistake.

I know SS makes mistakes too but it is up to us to make sure they correct their mistakes are we pay the price.
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Yeah, I think it's assumed we'll report an over-payment, and rightfully so.

If my check was for an amount that was well above the usual, I wouldn't say "Yay!" and go directly to the bank. I'd call the SS office and ask why.
 
Murrmurr said:
Yeah, I think it's assumed we'll report an over-payment, and rightfully so.

If my check was for an amount that was well above the usual, I wouldn't say "Yay!" and go directly to the bank. I'd call the SS office and ask why.
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Exactly...but if it had been paid from the beginning, and it was a clear miscalculation by the benefit office.. then it should be deemed to be their problem and not the recipient
 
C50 said:
It happened to my mom after my dad died. I don't remember all the details but after dad died SS said her benefits should have been reduced but weren't.
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That might have happened to my mom too, I only remember that she was very unhappy about Social Security after my father died, and I assumed the reduced benefit was the reason. But, when her health was failing and she was making sure my brother and I knew what should be done, she was very emphatic that we needed to inform Social Security of her death immediately.
 
hollydolly said:
Exactly...but if it had been paid from the beginning, and it was a clear miscalculation by the benefit office.. then it should be deemed to be their problem and not the recipient
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Yes it should. But to accumulate that much I'd have to collect $900/mo for about 135 years, and that's after I was old enough to start collecting....or, in her case, after she lost significant work hours.

I'm pretty sure the SSA made an error when they billed that lady for $120K.
 
Back in about 1972 i started receiving a ss benefit because of my father’s age and me being a student. They gave me a lump sum and a monthly benefit. Then they figured out somehow they miscalculated the monies. So they reduced my benefit to about ten dollars a month to recoup. So yes…it happens.
 

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