What Effect Does EDD Overpayment Have on You?
Understand the effects an EDD overpayment can have on you by reading this guide. If you believe the department wrongfully sent you a notice of overpayment, let an experienced lawyer help you! Don’t conquer the EDD alone.
What Is an Overpayment?
An overpayment is when the EDD determines that you’re not entitled to benefits that you already received. The department will send you a notice of overpayment expressing that you must repay a specific amount of money. If you don’t create a repayment plan or prove that the EDD is wrongfully targeting you, the department will collect debts in different ways.
How the EDD Labels Overpayment
Simply put, an overpayment is either your fault or the EDD’s fault. Sometimes, the department experiences errors while issuing funds, or fraudulent practices can occur on your part. The EDD labels overpayments as either fraud and non-fraud.
- Fraud – The EDD discovers that you intentionally gave false information or withheld information when you requested benefits. This is a legal offense, and the EDD can seek criminal prosecution, add a penalty to your overpayment amount, and disqualify you for additional benefits.
- Non-fraud – When you didn’t partake in illegal activity to receive benefits, the EDD labels this as non-fraud. This could be an issuing error in the department (an employer accidentally giving you more money than you’re entitled to). In this case, the EDD will send you a letter determining whether or not you must pay back the benefits.
Ways the EDD Collects Overpayment
When you receive a notice of overpayment, you must contact the EDD to create a repayment plan. The department will collect funds through various methods if you don't take action. An EDD overpayment can have an effect on you by jeopardizing future finances. Repayments include (but are not limited to) wage garnishments (withholding a portion of paychecks), withholding your federal income tax return, deducting disability benefits, or taking a portion of lottery winnings.
Who Can Help You?
Did you know that the EDD issues several unjustifiable overpayments and penalties to California residents? Appealing overpayments is a complicated task that you don’t have to face alone! Let an experienced EDD overpayment lawyer help you! Here at Pershing Square Law Firm, we will work to resolve your case!