A Social Security user is now billed a whopping $13k in overpayment charges resulting in the recipients benefits disappearing.
James Steverding shared his frustration on Facebook after discovering Social Security would slash overpayment amounts.
“They finally got their s**t together about robbing millions of SSA recipients of their benefits because they may have been accidentally overpaid,” he wrote.
The Social Security Administration (SSA) pays around $1.4 trillion in benefits to over 70 million people each year, according to the SSA.
Overpayments occur when the SSA determines needing to recover debt if a person got a monthly payment they weren’t entitled to.
“I wish they would have fixed this problem before they took all of my benefits over several years to pay back a $13,000 overpayment,” said Steverding.
He claimed he wasn’t aware of the overpayment and had been on Social Security for five years.
On March 20, the SSA announced an update to address improper payment amounts.
“We are continually improving how we serve the millions of people who depend on our programs, although we have room for improvement, as media reports last fall revealed.”
Social Security Commissioner Martin O’Malley said the SSA would stop withholding 100% of an overpaid beneficiary’s monthly benefits.
The SSA now takes 10% of monthly benefits instead, if a recipient fails to respond to a demand for repayment.
O’Malley noted this more manageable rate was similar to the amount for the SSA’s Supplemental Security Income (SSI) program.
He also said the SSA would implement an easier process for overpaid beneficiaries to request a waiver of repayment.
Another user, LaTaya Gilmore says Social Security is attacking her after they slapped her with a $49,000 overpayment she claims she does not owe.
If you or anyone you know is going through something similar, share your story in the comment section below.
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Also Read:Â Social Security Is Now Demanding Money From Certain Individuals
Other Economy News Today
A massive bank now freezes money from direct deposits affecting several users. The giant says it was an unprecedented glitch.
Bank of America clients have been saddled by direct deposit delays following a payment processing glitch.
Customers began to report digital payment delays to Bank of America.
Social media users tagged the bank to explain how their paychecks hadn’t yet hit their accounts in November.
“Bank of America Day 4 & still no direct deposit, no update on potential resolution,” one user wrote on X.
“Or at the very least what’s being done to resolve the issue, no transparency, no assistance, no communication from you all at all. Nothing. Wow. This is so bizarre.”
Wells Fargo clients also reported experiencing direct deposit lags, and both banks reported questions to The Clearing House.
The Clearing House is an automated clearing house system that operates as a private sector in the US.
The Clearing House told CBS MoneyWatch that payment instructions were sent to banks due to a “processing error.”
Payments were delayed since banks needed to process data and incoming payments to clients’ accounts.
The company said it worked with the affected customers and the Federal Reserve to fix the issue.
“Many of the delayed payments have already been posted, and we will continue working with financial institutions to ensure the remaining transactions are processed,” The Clearing House wrote.
An ACH network enables money to be digitally transferred between US bank accounts.
The Clearing House and the Federal Reserve Banks process millions of payments daily, as per The Clearing House.
Its process involves an operator sending a file to a bank or credit union and allowing the institution to transfer funds into a client’s account.
The Clearing House posted a statement on its website saying the payment error resulted from masked information, “due to a TCH error.”
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Also Read: The US Treasury Direct is Now Freezing Customer Accounts
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