How an Attorney Can Help With EDD Overpayment Forgiveness

EDD overpayments surprise claimants, especially in non-fraud situations. Fortunately, people can appeal claims. Understand how an attorney can help with EDD overpayment forgiveness by reading this guide.

Understanding Overpayments

People overpay for their benefits when the EDD believes that a claimant isn’t entitled to benefits they already received. When the department notices overpayments, they demand repayment. This can sidetrack claimants as repayments may come with penalties.

Overpayments happen for various reasons, including a department error while issuing benefits. However, fraudulently claimed benefits also lead to overpayments.

If claimants don’t work out a repayment plan or appeal the notice of overpayment, the EDD will go toward debt collection.

Repayment Options

After claimants receive a notice of overpayment, they should contact the EDD to discuss repayment options or appeal the notice (to prove that they owe nothing). Without a plan, the EDD will collect money through different methods. These methods include:

  • Wage garnishment,
  • Interception of tax returns
  • Levy on bank accounts
  • Lien on personal/ real property
  • Deduction from unemployment or disability benefits
  • Withholding lottery winnings

Labeling EDD Overpayments

The EDD labels overpayments as fraud or non-fraud. Overpayment is fraud if the department discovers that a claimant purposely gave false information (or withheld information) while filing for benefits. This serious offense can lead to criminal prosecution, penalties, and disqualification of benefits for up to 23 weeks.

Non-fraud happens when the EDD learns that claimants aren’t eligible for benefits, but no illegal activity happens on their part. Usually, non-fraud cases happen if claimants receive more than their intended amount of money. This is due to a department or employer error. The EDD will determine if the claimant must pay back the funds.

Let an Attorney Help You

An attorney can help with EDD overpayment forgiveness by appealing the notice of overpayment. In non-fraud cases, claimants should explain why the EDD should reassess their case. This is the time to find errors on the department or employer’s side. Claimants shouldn’t deal with penalties if they did nothing wrong.

Having an unemployment overpayment lawyer is a smart move as they’re familiar with the EDD. The lawyers understand the appeal process and will gather the right information.

Let Pershing Square Law Firm handle your case. Our experienced team is here to help you. Contact us today for a free consultation.

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