OUT OF POCKET: ‘Be aware’ woman warns as Social Security demands $4,111 from overpayment – she’s now ‘broke’ and was denied help

According to THE SUN, Sabrina Fredricks, a widow from Arizona, has been hit with an unexpected $80,000 bill from the Social Security Administration (SSA) due to an overpayment error. Fredricks was stunned when the SSA informed her of the substantial amount she allegedly owed, despite not being responsible for the overpayment.

The Emotional Toll

Fredricks expressed her frustration, stating that the situation made her feel like a criminal, despite not having control over the amount she received. “It kind of made me feel like I was stealing from Social Security, which I wasn’t. That was all on them,” she told local CBS affiliate KTVK.

Social Security’s Approach to Overpayments

The SSA has been reaching out to individuals across the country to address overpayments. The organization has demanded repayment from those who received too much in benefits, even though the errors were not their fault. In Fredricks’ case, Social Security began deducting money from her monthly payments, leaving her with about $6,000.

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Currently, it’s estimated that Americans owe a collective $21.6 billion to Social Security. The SSA offers repayment plans starting at $10 per month but does not track how many people are on such plans due to limitations in their system.

Advocates Criticize the System

David Camp, interim CEO of the National Organization of Social Security Claimants’ Representatives, criticized the SSA for targeting low-income and disabled individuals with overpayment issues. “The great majority of overpayments and claw-back issues occur for SSI claimants who are both poor and disabled,” he explained. Camp stressed the need for more modern and responsive systems.

Legislative Response

U.S. Representative Ruben Gallego has proposed a bill aiming to address these issues. His proposed legislation would limit Social Security to a 10-year window to retrieve overpayments, arguing that it is unfair to punish individuals for administrative mistakes. “We should not be punishing individual U.S. citizens for a mishap or mistake the U.S. government made,” Gallego stated.

Other Impacted Individuals

Fredricks is not alone in facing financial difficulties due to Social Security’s overpayment recovery efforts. Bonnie Nelson, who faced a $34,048.40 debt from payments distributed between January 2021 and August 2022, reported severe financial strain. Social Security withheld $1,900 per month from Nelson, forcing her to rely on family support.

“I don’t know where to go. I don’t know what to do. I’m scared to death,” Nelson said. She struggled with basic expenses, including lot rent, car payments, and insurance. Nelson was only able to find relief after her financial hardship waiver was granted, allowing her to regain some stability.