Unemployment overpayment help needed..

[Zik43]

What is the name of your state (only U.S. law)? I am in Texas, but the overpayment is from a Pa. extension of federal money.


I had wages from two states. Im not going to explain how/why. Just the facts.

When my 26 weeks of Pennsylvania benefits expired, I had to apply here in Texas because I can not get an extension if I qualify in another state. I applied here in Tx and was approved for like 1/2 of my benefit amt I was getting from Pa. So after a month passed and I get nothing, I called Tx to see where my first payment was. They said they made a mistake and I did not qualify. They put it on the WIC screen (national database) that I did not qualify.

Pa was then able to continue with my extension. 3 months go by, and 3 weeks ago I get a $263 deposit from Tx unemployment. I called them and they said it was because I DID qualify here and I should of been getting it all along.

Needless to say, Pa stopped my payments. Then Tx said I needed to go file for allllll the back weeks, since like Aug. I filed for everything at once and they gave the money back to Pa for payment.

I am now continuing my Pa fed extension but they said they will now be taking 1/3 of it out, for the difference in the amount explained below.

My payment in Pa was $540 a week (but subtract the alimony). My amount in Tx was $263. So Pa wants the difference back. I see their point, but this was nothing I did wrong.

I said BS, make Tx pay you for their mistake NOT ME! They are the ones that said I was not eligible when I was! And if they wouldnt of taken 3 months to make a deposit, I would of caught it sooner! Pa never would of given me an extension if Tx didnt say I was NOT eligible. So let Tx pay for their mistake..not me.

Do I have to repay this money, if I did NOTHING wrong?

I wrote them a letter of appeal, but what should I say to them? Am I going to have to repay the overpayment if this was not my fault? I explained the financial hardship this will cause, but I have a feeling it wont matter.

Thanks for any advice.

 

[swalsh411]

You owe the money back to PA because you were not entitled to it to begin with. You can certainly attempt an appeal but I don't think it will be successful. Your letter should state in as condensed form as possible that you filed your claims based on the information you were given, never provided incorrect information to either PA or TX, and never intended to receive benefits you were not entitled to. I don't know how much leniency PA has in waiving overpayments but it's the best shot you have.

 

[Zik43]

Thank you for reading this and the reply. Seems so unfair, but nothing I can do about it I guess. I can not afford to repay especially since I am already being garnished for alimony. And when I am working soon, paying bills, alimony, now this repayment is going to cripple me even more.

Guess what. One more piece to this puzzle. I checked my bank account last week and Tx actually gave ME the money instead of giving it to Pa. I have $2700 in my account when I was expecting to see like $20. Immediately I got on the phone to both states to pay this money back to someone. Pa told me they will let me know soon where to pay it. I told them to hurry because leaving $2700 in the account of someone who has like $0, is not a good idea.

I am of course not going to spend or use the money deposited by mistake. No matter how much I need it, it would then make my innocence argument null and void. lol

Ok.. thanks again. Have a great day and Holiday Season.

 

[commentator]

As long as you are drawing benefits, they're not going to miss the chance that they are going to get that money back. And sorry, even though you were paid more than you would've been otherwise due to their error, not yours, you're still not entitled to it, just because it's a non-fraud overpayment.

Think of it this way. If you were receiving payroll checks and the employer made an error and overpaid you, you'd still have to pay the money back, wouldn't you, even though it was the system's fault, not yours?

Unemployment benefit maximum amounts vary widely from state to state. You cannot receive Federal extension money in any state if you have a valid regular state claim in any other state. You obviously had a claim in Texas to pull from after your claim in PA was exhausted. You were denied in error. You received the Federal extension in PA, at the amount of your benefit in PA.

It was a nice little loan, wasn't it? Okay now they want it back. You don't have any appeal of that. You were overpaid. You got money to which you were not entitled. Now they want it back, so essentially, you received a little temporary interest free loan. Since unemployment insurance is not designed to be an income maintenance program anyhow, you very likely will not qualify for a deferral of the overpayment. After all you cannot say you have no money at all to pay back the overpayment, as you are receiving a weekly check from the federal extension program in PA. Good thing they're not taking all of it, as some states would be.

Incidentally, if you're at this end of your federal extension, you need to be thinking long and hard about what's going to happen when you stop receiving benefits all together, because that time is coming up very soon.

 

[Zik43]

Ok I get it and understand completely.

What happens if:

1) There is a federal extension by the end of the year, they will continue to garnish? Will they assess penalties and interest?

2) I start working. Will they come after me hard? Attach wages, keep refunds, etc?


I really have the worst luck in the world. How this can even happen is beyond me. I just dont get how a mistake like this can be made. If my information is entered into the system, I should either qualify or not. Not be denied and then 3 months later, ooops you did qualify.

Well...it is what it is. Thanks for the replies.

 

[Zik43]

I have read that Pa does grant waivers for hardship sometimes. Would I have any shot at this? Any information as to a hardship waiver?

 

[commentator]

OP, if you really do have the worst luck in the world, they're not going to do any federal extensions past the New Year. I don't really know, it doesn't look good. As I said, unemployment insurance isn't supposed to save you from total financial ruin.When you signed up for it, they didn't ask you any questions about whether your wife was working, whether you had any other sources of income, money in the bank, etc.

Actually, as I said, they're not going to miss that chance to get the backpay while you're actually drawing, but if you were to stop filing for weeks of benefits, as in return to work somewhere, you have a pretty good chance they won't come after you actively toward recouping the rest of it. Probably, and this is just an educated guess, if you went to work and stopped drawing benefits, they'd let that overpayment lay there until you started drawing again, or until you were due a state tax refund, when they'd get it from that, or tried to get a state licensure or renew some state fee. Then it would be recouped. How much is it now, do you have any idea?

Since this is not a fraud overpayment, was not caused by your deliberate efforts to lie and mislead the system, they won't be recouping it with malice. They won't be coming after it with all the flags flying. They've already gotten some of it back.

The waivers, based on your income, well, let me put it this way. If you were drawing a little bit, and your employer appealed the decision, and you were denied benefits, and you were absolutely destitute, I mean they pull in your total family income for the past six months, how much you pay for rent, how many outstanding bills, and how much you actually have on your person and in your bank accounts right now, that's the kind of information they require, and it indicates that you are destitute, have no possible way of repaying this overpayment, then you may be granted one. Yes, PA is one of those states that does have this option. You might as well ask for one. Be prepared to provide them with every sort of personal information you can come up with about your poverty stricken state. I have taken waiver information on people who were so broke they were living on the street. They usually got approved for a waiver. But they weren't still getting a federal extension on a claim, either,you know?

Frankly, if I were you, I'd be out looking for something else in terms of a job very diligently as well. They won't give you a waiver as long as you have the ability to file for any unemployment compensation. They're not going to grant you a waiver based on income and then let you keep drawing your full PA extended benefits, if the extended benefits are extended.