Latest news with #overpayment
Yahoo
24-05-2025
- Business
- Yahoo
'I Feel Scared' — 65-Year-Old Widow Hit With $70K Social Security Bill A Decade After Husband's Death, He Called SSA 'Constantly' To Fix Overpayment
Grief alone is enough. But imagine adding a five-figure bill from the federal government on top of it. That's what Ruth Podmanik, a 65-year-old widow from Sheffield Lake, Ohio, is dealing with—more than a decade after her husband passed away. In an interview with WEWS-TV in Cleveland, Ruth shared her story: her husband Ed died in 2012 after battling leukemia. Now, she's being told she owes the Social Security Administration nearly $70,000 in alleged overpayments tied to him. "He liked spending time with his family and especially my grandson," Ruth said. "He was a good guy and I really miss him." Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – The issue? While Ed was out of work during treatment, he received disability payments. But when he eventually returned to work, the checks kept coming—and not because he wanted them to. "Did he ever question...," the reporter began. "Yes, he called them constantly," Ruth said. "(He) said 'I'm back to work. Why am I getting this?' They said because you have Leukemia." That was over a decade ago. And no one said anything—until now. Ruth recently retired and applied for her husband's Social Security benefits. That's when she was blindsided with a notice from the SSA: they want $69,087.50 back. "Not once did they say anything to me about, 'Hey, you know you still got an overpayment here?'" she told WEWS, pointing to the document. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Now, she's stuck in bureaucratic limbo, still waiting for clarity and fearing what's next. "I feel scared," she said. "Am I going to have to sell my house?" While Ruth's case is deeply personal, it points to a broader question: how do these overpayments happen at all—and why are some being discovered so long after the fact? According to the Center on Budget and Policy Priorities, Social Security has a payment accuracy rate of over 99%, with only 0.3% of benefit payments considered improper. That statistic—backed by government-reported data—suggests most payments are accurate. But when something does go wrong, it's often due to what advocates and policy experts say are administrative delays, outdated systems, or communication breakdowns inside the SSA. In cases like Ruth's, the system may have failed to properly flag her husband's return to work, despite his reported efforts to notify the agency. It's a scenario that legal aid groups say happens more often than the public realizes—not because of fraud, but because of bureaucracy. And while the mistake occurred years ago, the collection effort is still legally sound. The SSA has specific timeframes to determine overpayments: Title II (Social Security retirement, survivors, disability): The SSA generally has four years to reopen or revise a previous benefits decision. Supplemental Security Income: The timeframe is two periods are outlined in SSA regulations and are intended to limit the window for reassessing benefit determinations. However, once an overpayment is identified within these timeframes, the SSA can pursue recovery indefinitely. There is no statute of limitations on collecting overpayments, meaning the agency can seek repayment years, even decades, later. This policy has led to situations where beneficiaries are notified of overpayments long after the fact, as highlighted in a CBS News report. The SSA provides an appeal process, waiver options, and payment plans—but in many cases, the burden is on beneficiaries to prove they're not at fault. For Ruth, the paperwork, confusion, and stress keep piling up. She's grieving, retired, and now staring down a bill that she and her husband tried to prevent from the start. And she's not the only one asking: if he called "constantly," why is she the one being left to clean it up? Read Next: Invest where it hurts — and help millions heal:. 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article 'I Feel Scared' — 65-Year-Old Widow Hit With $70K Social Security Bill A Decade After Husband's Death, He Called SSA 'Constantly' To Fix Overpayment originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
24-05-2025
- Business
- Yahoo
New Social Security Change Means You Could Owe Money
Major changes are happening right now at the Social Security Administration (SSA). For some retirees and beneficiaries, these changes could come with an unexpected price tag. Read More: Try This: A recent policy update means certain beneficiaries who were overpaid may now find themselves owing money back to the government. In March, the SSA announced it would reinstate the overpayment recovery rate and withhold 100% of a person's monthly benefit to recover overpayments. After facing criticism, the agency stated in an emergency message that it adjusted the default withholding rate to 50% for some recipients. These updates are part of a broader effort to overhaul how the SSA handles overpayments, but many Americans are left wondering what it means for them. Here's what you need to know about the new rules, who's most affected and how to prepare. Effective Apr. 25, 2025, overpayment notices will include a new default withholding rate of 50% of a person's monthly Social Security (Title II) benefit, down from the previous 100%. This applies to those receiving retirement, survivors and disability insurance benefits. This means that if the SSA determines an individual has been overpaid, it will send a notice requesting a full and immediate refund. If the individual does not respond within approximately 90 days, the SSA will begin withholding 50% of their monthly benefits until the overpayment is fully recovered. The new rule only applies to Title II benefits. The withholding rate for Supplemental Security Income (SSI) benefits is still 10%. Find Out: Any beneficiary may owe the Social Security Administration money if their monthly benefit checks are more than what they're owed. This can happen for a number of reasons, such as if a beneficiary doesn't report a change in their circumstances to the SSA, if the agency doesn't process information quickly or has errors in its data, CNBC reported. Richard Fiesta, executive director of the Alliance for Retired Americans, explained to CNBC that in most cases, it wasn't the beneficiary's fault that they were overpaid. Beneficiaries have the right to request a lower withholding rate, a reconsideration or a waiver of the overpayment recovery within 90 days of receiving the overpayment notice. If no action is taken, the 50% withholding will commence after this period if there's no fraud or similar fault until the agency recovers the overpayment. However, there is no guarantee that payment negotiation will be successful, and the outcomes vary, Kate Lang, director of federal income security at Justice in Aging, explained to CNBC. Beneficiaries can also expect long wait times to make an appointment to visit a Social Security Administration office. More From GOBankingRates How Much Money Is Needed To Be Considered Middle Class in Every State? Warren Buffett: 10 Things Poor People Waste Money OnSocial Security Administration, 'Social Security to Reinstate Overpayment Recovery Rate.' Social Security Administration, 'Change to Title II Overpayment Default Benefit Withholding Rate to 50 Percent Withholding.' CNBC, 'Social Security reduces benefit clawback from 100% to 50% for some; experts still warn of 'devastating' effects.' This article originally appeared on New Social Security Change Means You Could Owe Money Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Irish Times
22-05-2025
- Business
- Irish Times
Ryanair seeks to reclaim Spanish pay rise
Ryanair workers have staged a number of strikes across Europe over low pay and working conditions in recent years, but cabin staff in Spain have a new grievance with the company after being informed that they have been overpaid and must therefore return a sum of money to their employer. The money corresponds to a raise workers were given last year following a deal between the CCOO union and Ryanair and which was subsequently struck down by a court after it was contested by a rival union, USO. A new deal was reached, but only covering CCOO members. In a letter sent to those not covered by that union and which has been seen by some media, Ryanair explained that 'this situation created an overpayment situation as you were paid higher salaries in the period October 24 to March 25 that have now been declared null and void'. One such letter published by El Confidencial news site showed that the recipient had been asked to pay back €3,215.95. The letter also offered 'a repayment plan of 12 months ... in order to mitigate the effects that this debt may have in [sic] your salaries', with the corresponding amount to be deducted from the worker's pay over that period. One worker cited by El Confidencial was told they had to pay back €4,133.50, and another was told they owed €2,831.16. READ MORE Those affected were offered a way out: to join the CCOO union, which represented 40 per cent of Ryanair workers in Spain when the letters were sent out. An initial deadline of early May to join the union in order to avoid having to pay back the money was then extended to May 19. The USO union has recommended that its members should not agree to pay back the money from the wage increase. This week, Ryanair reported a 16 per cent drop in profits for the last year, attributed in part to a dispute with online travel operators which pushed fares down and a dip in demand.
Phone Arena
21-05-2025
- Business
- Phone Arena
If you closed your account and T-Mobile won't refund money it owes you, here's what you need to do
If you've ported out of T-Mobile, or are planning on leaving the Un-carrier, try not to overpay before you cancel your account and leave T-Mobile for good. That's because the way T-Mobile handles an account that has been closed you might never get back the amount you overpaid the carrier. To add insult to injury, T-Mobile will continue to send you your statement each month showing you with a credit that you'd be entitled to receive but might never actually end up in your bank account. For example, a Reddit subscriber with the user name gsmarquis mentioned that he left T-Mobile for an unnamed wireless provider with a plan priced at half the cost of his T-Mobile plan. After receiving a bill from T-Mobile for $75, which he paid, the Redditor received a bill showing that he had a credit of $47.69. Despite having overpaid T-Mobile and receiving invoices to prove it, the former T-Mobile customer was unable to get his money back. The excuse made by the carrier was that the subscriber no longer had a T-Mobile account, which prevented the wireless provider from verifying an account that no longer exists. The former customer couldn't remember his PIN, and without that, once the account was cancelled, his identity couldn't be verified. No verification means no check could be cut by T-Mobile for the credit the carrier owed its former customer. This happened to another T-Mobile customer who was owed a refund but had a cancelled account and he too could not remember his PIN. But this guy went to T-Mobile 's elite customer service team, T-Force. We've seen many situations mentioned on social media where a T-Mobile customer could not get satisfaction from the carrier's traditional customer service and had to turn to T-Force to come out on top. In this case, T-Force was able to verify this customer's account and process the refund to the card it was made from. Keeping in mind that you have T-Force as a backstop, if you are a subscriber, make sure you have your T-Mobile PIN memorized. Also, try not to close your account and leave T-Mobile before you are paid back for any overpayments you might have made. If you've closed your T-Mobile account with a balance in your favor and can't remember your account PIN, the carrier will probably not make you whole. If you're in this situation, contact T-Force via X by sending a Direct Message (DM) to @TMobileHelp. Explain the complete situation in your DM and include your phone number.
The Sun
18-05-2025
- Business
- The Sun
How to pay off your mortgage early on an average UK salary
PAYING a mortgage off early might seem like a pipe dream for most people. It's typically the largest debt you'll ever have, taking decades to pay off. But it is possible to make that dream a reality, even on an average wage. Monthly mortgage bills are made up of both interest and a repayment towards the underlying debt. The quicker that you can erode the underlying debt the more you save on interest. When you make an overpayment on your mortgage it goes straight towards your debt. The key is making these payments whenever you can afford to. Even very small amounts of cash can make a big difference over the long term - saving you thousands in interest and mean you become mortgage free sooner. For example, a £50 over payment once a month on a 25-year mortgage would save you more than £13,000 in interest and slash your mortgage term by over a year. And if you could afford to pay an extra £100, you'd save £26,000 and become mortgage free 2.5 years sooner. 2 Justin Whitelock, of City Finance Brokers, said: "The key is not to take out your fixed rate for five years and then forget about your mortgage. "I would always say be realistic and set up your overpayment from the beginning and don't overstretch yourself." With lenders slashing rates, is now the right time to fix your mortgage? Here's what the experts think You can organise with your mortgage provider to increase your monthly mortgage repayment so that more money is going towards the outstanding loan. Or if you want to pay money as and when you have extra cash, you can also do that. A good opportunity to overpay is when you remortgage on to a lower rate. "Think about keeping that payment the same," says Justin. "Everyone can have best intentions about putting the money away every month but for most people they don't see through that commitment." Another option is switching to biweekly payments. For example, if your monthly mortgage is £1,200 a month, you pay £600 every two weeks. But because the number of days in a month can change, you end up paying extra over the year. Lump sum payments are another way of chipping away at the debt, perhaps if you get a bonus from worth or commission. You can also sign up to a cashback app Sprive which will funnel any money earned through your everyday shopping towards paying off your mortgage. Downloading the app and linking both your bank and mortgage accounts. If you were to spend £100 a week at a supermarket, offering a 2.5% cashback, you could have £20 towards a mortgage overpayment at the end of a month. Watch out for pitfalls It's important to note on a fixed-rate mortgage, lenders only usually allow for extra payments of up to 10% of what you owe every year. For example if your mortgage is £300,000 you can only overpay by £30,000. If you pay more than this, you'll get hit with stinging early repayment fees. How to get the best deal on your mortgage IF you're looking for a traditional type of mortgage, getting the best rates depends entirely on what's available at any given time. There are several ways to land the best deal. Usually the larger the deposit you have the lower the rate you can get. If you're remortgaging and your loan-to-value ratio (LTV) has changed, you'll get access to better rates than before. Your LTV will go down if your outstanding mortgage is lower and/or your home's value is higher. A change to your credit score or a better salary could also help you access better rates. And if you're nearing the end of a fixed deal soon it's worth looking for new deals now. You can lock in current deals sometimes up to six months before your current deal ends. Leaving a fixed deal early will usually come with an early exit fee, so you want to avoid this extra cost. But depending on the cost and how much you could save by switching versus sticking, it could be worth paying to leave the deal - but compare the costs first. To find the best deal use a mortgage comparison tool to see what's available. You can also go to a mortgage broker who can compare a much larger range of deals for you. Some will charge an extra fee but there are plenty who give advice for free and get paid only on commission from the lender. You'll also need to factor in fees for the mortgage, though some have no fees at all. You can add the fee - sometimes more than £1,000 - to the cost of the mortgage, but be aware that means you'll pay interest on it and so will cost more in the long term. You can use a mortgage calculator to see how much you could borrow. Remember you'll have to pass the lender's strict eligibility criteria too, which will include affordability checks and looking at your credit file. You may also need to provide documents such as utility bills, proof of benefits, your last three month's payslips, passports and bank statements.
