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Social Security Administration Changes Policy on Older Debt Collection

By Kenton Koszdin Law Office on May 12, 2014 | In Social Security Disability

Social Security Administration Changes Policy on Older Debt Collection

Maybe you didn’t know this, but the Social Security Administration (SSA) has been implementing what some believe is the heavy-handed policy of using the Treasury Department to collect past over-payments paid to Social Security retirees and disability beneficiaries.

In other words, state and federal tax refunds have been seized to repay SSA debts.

The Acting Commissioner of Social Security recently announced that the agency has changed that policy and will no longer refer debts that are 10 years old or older to the Treasury Department under the Treasury Offset Program. This will come as a relief to those who may have received overpayments from SSA and may not even been aware of it. Debt can be unwittingly accrued by recipients whose eligibility status changed and they continued to receive more benefits than they were entitled to.

In some cases, these overpayments have not been detected by Social Security for years, leading to a severe case of sticker shock when a collection notice appears in the mail. In some instances SSDI dependents have been informed that they have to repay debts that may have been incurred by parents and grandparents decades ago.

While this is a bit of good news, SSA still has other means at its disposal to collect past over-payments and the new policy does not apply to debts that are under ten years old. Also, SSA did not announce that it would stop existing efforts to collect debts ten years old or over.

Have you received a collection notice from SSA? If so, you should seek professional advice concerning your options. Call the Kenton Koszdin Law Office in Los Angeles toll-free at (800) 438-7734 or contact us online today to schedule a free consultation and review of your case.

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