A Reddit member recently received a letter from the Social Security Administration regarding a strange case of debt. They were taken aback when they discovered it was a notification because they had assumed it would be ordinary paperwork. They owe the federal agency $11,000 in overpayment benefits, according to a notice they received.
The story’s most intriguing twist, though, is that the original poster was never paid for.
After reading more, they discovered that the debt was caused by disability benefits their father had previously received. These benefits were given to their father following an accident sustained at work. The Reddit poster was a minor at the time of the payment. They assert that they never saw or handled any of the money while they were younger.
Fortunately, their father and them had a falling out, and approximately four years ago, he vanished completely.
And now, decades later, they are perplexed and in a panic due to this abrupt demand for reimbursement.
The user said, “I don’t know what I’m supposed to do,” adding that they had never had debt before and that the claim had caused them a great deal of stress.
One must first comprehend what SSA overpayment is in order to comprehend this instance! An overpayment, according to the SSA, is when someone gets more money than they should have.
There are several reasons why this might occur. Changes may occur in living circumstances, employment activities, or income. Beneficiaries are occasionally paid more than they owe when such life events occur and they fail to update their account information.These overpayments are occasionally connected to benefits given to children.
The SSA sends a letter if there is an overpayment. The amount owed, the basis for the claim, the payback schedule, and the recipient’s rights to contest or request a waiver are all explained in the letter.
The adult kid in this instance is listed in the letter as the one liable for benefits related to their father’s claim. However, the Reddit poster had no authority over the money because they were a minor at the time.
Reddit users have responded to this article in droves. Numerous people have encountered comparable circumstances. Many of them stressed that SSA provides official procedures for contesting or resolving overpayments.
They should fill out Form SSA-632, according to one commenter. This is a request to waive the recovery of overpayments. They may point to the fact that the benefits were given while the user was still a minor. Others have pointed out that money given to a parent or guardian is usually not a liability for minors.
In order to contest an overpayment, the SSA provides two main tools:
-
Appeal the decision
by filing Form SSA-561, Request for Reconsideration, within 60 days of receiving the notice. This is appropriate if the person believes the overpayment amount is incorrect or that no overpayment occurred at all. -
Request a waiver
with Form SSA-632 if the recipient believes the overpayment was not their fault and repayment would be unfair or cause financial hardship. Unlike appeals, waiver requests have no strict deadline.
When someone files an appeal or requests a waiver, the SSA stops collecting the debt. The agency may, however, recoup overpayments by garnishing future benefits or withholding federal income tax refunds if they are disregarded.
