[VA] Can the Social Security Administration collect a waived SSI overpayment and intercept tax refunds?

VA Tax

Ray

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Based on your situation, there are several legal arguments and consumer protection laws in the United States that could potentially support your case:

The Social Security Administration (SSA) is bound by its own regulations and court rulings (42 U.S.C. § 1383(b)(1)(B)). If a waiver has been granted, it should prevent further collection actions. The SSA's actions in intercepting your tax refunds despite a waiver and court ruling could be seen as a violation of these regulations.

The Treasury Offset Program (TOP) is used to collect debts owed to federal agencies. However, if a debt has been waived or deemed uncollectible, it should not be certified for offset. The wrongful interception of your tax refunds could be challenged on these grounds.

Credit reporting agencies are required to ensure the accuracy of the information they report. If SSA reported a debt that was waived, it could be considered inaccurate reporting. The Fair Credit Reporting Act (FCRA) provides protections against inaccurate credit reporting and allows disputes to be filed.

The conflicting figures reported by SSA could indicate a lack of proper record-keeping or communication within the agency, which might be addressed through legal channels.

SSA Request for Reconsideration (Form SSA-561-U2)

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SSA intercepted my tax refunds and reported a false debt to my credit report despite a written waiver and court ruling. What are my legal options?

I have a written SSA waiver dated January 2021 formally forgiving my entire SSI overpayment under Title XVI. A federal judge had already reduced the original overpayment in April 2020. SSA's own written waiver explicitly states I will not have to pay this money back.

What SSA did despite the waiver:

Despite this binding written waiver and judicial reduction, SSA certified my debt to the Treasury Offset Program and wrongfully intercepted my federal and Maryland state tax refunds. SSA hotline representatives verbally confirmed the waiver, told me SSA removed the debt from their system, and confirmed the debt was uncollectible—all of which proved false as SSA proceeded with collection regardless.

The credit report problem:

SSA reported a $23,966 collection to my credit report. Experian deleted it after my dispute. However, SSA then verified the debt as accurate through a CFPB complaint, creating a re-insertion risk.

The conflicting figures:

When my congressman contacted SSA, they told the congressional office I owe $13,651.80—a completely different figure than the $23,966 reported to my credit. SSA now has three conflicting positions: a full written waiver, $23,966 reported to my credit report, and $13,651.80 reported to Congress.

What I need:

I have visited SSA offices multiple times with no resolution. What type of attorney handles wrongful Treasury Offset Program interception and SSA ignoring its own written waiver? What is my best legal path to recover my wrongfully intercepted tax refunds, permanently stop further collection, and ensure permanent removal of this debt from my credit report?

Lexi, Chatbot

Where are you located? It matters because laws vary by location.

Fairfax, Virginia.

Lexi, Chatbot

Has anything been filed or reported?

Yes, everything.

Lexi, Chatbot

Is there anything else the lawyer should know before I connect you? Rest assured they'll be able to help with your SSA debt issue.

No.

Ray

Hey there! Welcome to our service. I'm Ray, an attorney with many years of experience.

I understand you're dealing with SSA intercepting your tax refunds and reporting a false debt despite having a written waiver and court ruling.

Ray

Based on your situation, there are several legal arguments and consumer protection laws in the United States that could potentially support your case:

The conflicting figures reported by SSA could indicate a lack of proper record-keeping or communication within the agency, which might be addressed through legal channels.

Ray

Let's break down your options and next steps:

1. Review and gather documentation. Start by collecting all relevant documents, including the SSA waiver, court rulings, correspondence with SSA, and any credit reports showing the debt. This will be crucial for any legal action or dispute resolution.

2. Consult a consumer protection attorney. Given the nature of your issue, a consumer protection attorney with experience handling SSA and credit reporting matters would be well-suited to evaluate your claims and legal options.

3. File a formal complaint with SSA. Submit a formal complaint detailing the waiver and court ruling and request a review of your case. Include all supporting documentation.

4. Dispute the debt with the credit bureaus. Since Experian removed the debt after your dispute, continue monitoring your credit reports and dispute any re-insertion. The Fair Credit Reporting Act (FCRA) provides protections against inaccurate reporting.

5. Contact the Treasury Offset Program. Dispute the interception of your tax refunds and provide the waiver and court ruling as evidence that the debt should not have been certified for collection.

6. Work with your congressional office. Since your congressman has already made inquiries, provide the updated information and request additional assistance in resolving the matter with SSA.

7. Consider legal action. If administrative efforts fail, consult an attorney about pursuing legal action regarding the alleged wrongful collection activity and credit reporting issues.

Ray

66,480 satisfied customers

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