free html hit counter Woman pleads for help after Social Security Administration demands she pays back $88k – she’s terrified to lose her home – My Blog

Woman pleads for help after Social Security Administration demands she pays back $88k – she’s terrified to lose her home

A SENIOR woman was left pleading for help after receiving notice from the Social Security Administration that she owed over $88,000.

The 73-year-old, overwhelmed by the threatening pay back request, was left scrambling for help out of fear that she would lose her home.

2JWM6R0 Sad old woman. Depressed lonely senior lady with alzheimer, dementia, memory loss or loneliness. Elder person looking out the home window.
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A senior woman feared losing her home after the SSA hit her with an overpayment notice[/caption]

Social security card and American money dollar bills close up concept
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The SSA sent the woman an abrupt notice informing her that she owed over $88,000[/caption]

The Social Security Administration made roughly $72 billion in improper payments from 2015 through 2022, the majority of which were overpayments, per a report from the Office of the Inspector General.

Although some overpayments were collected, a large portion remained in the pockets of Americans, with the federal agency still owed $23 billion at the end of the 2023 fiscal year.

While the SSA is often to blame for overpayments, these errors fall on the shoulders of the Americans who are required to repay the excess amounts – some of which have climbed to hundreds of thousands of dollars.

One woman, Ruth, was hit with a shocking overpayment notice for $88,734 in May 2021, she shared on the AskTerry blog.

The woman received a letter from the SSA alerting her that she owed tens of thousands of dollars as she was not entitled to her husband’s benefits because she collected a pension.

“I went through all the process with the SS office, brought in all documents that were needed by them, and nothing was ever told to me by them that I was not able to collect,” she explained.

“I filed an appeal but never heard from them until now.”

The 73-year-old’s situation was even more financially complicated due to her health situation, as she had had a heart attack and a triple bypass surgery.

“I don’t want to lose my house!” cried Ruth.

She explained that she had previously attempted to address the overpayment issue, but due to the pandemic, the SSA would never get back to her and her local offices were always closed.


“Now they are threatening me. Please help!”

Ruth’s experience, unfortunately, is not an isolated one, as millions of others have been hit with overpayment notices from the federal agency.

The menacing letters frequently demand immediate repayment without explanation or apology, often threatening the beneficiary’s financial stability.

The U.S. Sun has previously reported stories of other Americans who were hit with costly overpayment notices, such as one woman who received a bill for $63,000.

Filing a waiver with the SSA

Those who cannot afford to pay back the overpayment amounts noted by the SSA or feel they should not have to can file a specific form.

  • The form is identified as SSA-632 on the SSA website and can be filled out and submitted at a local office.
  • “If you agree that you have been overpaid, but you feel you should not have to pay it back because you did not cause the overpayment and you cannot afford to repay it, you should file Form SSA-632,” the SSA notes on its website.
  • It also lists multiple repayment options.
  • Recipients with additional questions are urged to call 1-800-772-1213.

In another case, the SSA waited over two years to tell a woman she owed $40,000, giving her just 30 days to repay and stopping her checks.

CASH CATASTROPHE

An overpayment occurs when the SSA pays a recipient more money than they are due.

These overpayments can occur due to a number of reasons, such as a beneficiary’s failure to report a change in their income, living situation, or medical condition.

The SSA can also make mistakes in calculating benefits or processing information. 

The federal agency goes about recouping overpayments via various methods, such as by withholding benefits.

Americans with overpayments may see their benefits cut in half starting later this month, with the SSA issuing an “emergency” message in April announcing that 50% of their checks would be withheld.

The SSA revealed it would begin sending overpayment notices on April 25, 2025, and would start withholding 50% of a recipient’s benefits after around 90 days – or roughly July 24 at the earliest – until the overpayment is collected.

The new 50% withholding rate marks a major U-turn from the SSA’s announcement in March that 100% of an American’s monthly payment would be withheld until the entirety of their overpayment was collected.

As the SSA switches up its overpayment policy, the federal agency is rolling out other changes.

For example, Americans received a “misleading” email from Social Security chiefs about a change after an “unprecedented” law passed.

Plus, millions will see their income slashed under another Social Security switch and an expert said they’ll have to wait longer to retire.

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