Social Security Error Costs Woman $215,000

Social Security overpayments happen every day, but not to the tune of more than $200,000, but that is exactly what happened to an Atlanta woman.

First reported by CBS46 in Atlanta, after more than a decade of receiving Social Security disability benefits 63-year-old Jamella Hall was notified that Social Security had been overpaying her for the last 14 years and the agency wanted its money back. This overpayment matter, which was admittedly Social Security’s own fault, resulted in Hall receiving an overpayment of $215,000 over those 14 years. Obviously Hall, who was living off her Social Security payments, could not pay Social Security back so the agency setup a payment plan for her. The payment plan was to take $436 a month out of her Social Security benefits for 492 months, which equates to 41 years. Remember, Hall is 63 years old, so apparently Social Security expects her to live to at least until 104.

Because of the overpayment matter, Hall’s benefits were discontinued by Social Security, so she had no source of income whatsoever and was relying on assistance from her sister. After Hall’s story was broadcast Social Security changed its tune about cutting off her benefits and her benefits were resumed, but there has been no final decision made about the overpayment matter.

Social Security made the error of overpayment to Hall, who had no idea she was receiving too much money. Fortunately, when someone is overpaid and Social Security requests reimbursement, people can file an appeal and ask the agency to waive the overpayment. Unfortunately Social Security does not always agree to waive the overpayment, but when Social Security was the one at fault, such as in this situation, there is no more clear-cut case where an overpayment should be granted than this one.