$19 Billion Dollars in unemployment benefits paid in error
User ID: 4750204
11/21/2011 01:44 PM
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Ohhh, its not done in error OP. EDD is known for overpaying so they can collect penalty fees on top of the money they supposedly overpaid.
Unemployment is nothing but a government loan. There are countless people that collect unemployment due to no fault of their own, then EDD conveinently overpays you, then when it runs out, or you find a job and find you dont need UI benefits again, EDD sends you a letter saying ooops we overpaid you, here are your payment plan options, plus a 200.00 penalty fee. If you dont pay us back monthly your wages will be garnished, or if you expect a refund from the IRS, we will intercept that, if you win the lottery, we will garnish that. On top of that, if you happen to find you are unemployed yet AGAIN, they will take that money supposedly owed them, from your UI payments, and make you go through what they call a penalty phase, meaning a time period where you dont get any benefits, which can be anywhere from 6 weeks - 25 wks.
Trust me it happened to a friend of mine in Maryland, and it happened to me 1.5 yrs ago. And if you search unemployment benefits overpayments, it will bring up all kinds of people asking that the question, of how they are supposed to pay it back when they dont have a job, and just countless stories from people from Calif to timbuktoo, who are crying their eyes out due to being overpaid, and they dont have the money to pay it back.
I was unemployed for 2 yrs. My benefits ran out. I happened to find a job, and I get a letter in the mail about 3 wks later from EDD saying they overpaid me by 1800.00. Yayyyyyyyy !! My payments were 51.00 a month, plus the 200.00 penalty fee, and if I were to become unemployed again my holding penalty phase would be 6 weeks.
Unfortunately for me I lost my job AGAIN, this August, and after making regular payments to EDD, for the last year I had a balance of 387.00 left when I found I needed UI benefits yet again. EDD took the 387.00 I still owed from my first 3 checks, and I didnt see a dime for 8 wks.
So there are a lot of people here who think that collecting unemployment is a walk in the park. Its not. I dont want to collect, because I am afraid they are going to make me pay it back again.
Unemployment is nothing but a government loan, that is to be paid back by about 80% of those who are unfortunate enough to have to collect it.
This is how the government is able to extend benefits for a lot of unemployed. By making you pay it back, so the next round of unemployed can collect benefits.
Trust me, the government knows what they are doing. Its bullshit, and unemployment is a scam. Nothing but a loan.