EDD bank levy for overpayment - urgent help needed to release funds for rent
I just discovered EDD has placed a levy on my bank account for an alleged overpayment from 2023. My checking account is frozen and I have rent due in 3 days! They're claiming I was overpaid about $4,200 in regular UI benefits, but I reported everything correctly as far as I know. They sent some notices I might have missed during a move. I'm barely making ends meet with my part-time retail job ($17/hr, about 25 hrs/week). This levy is literally taking food money and rent money. Has anyone successfully gotten an EDD levy released or at least partially lifted due to financial hardship? I'm thinking about setting up a payment plan but I'm worried they'll just take whatever tiny amount I have left anyway. I don't even know how to properly dispute the overpayment at this point since it seems too late. Any advice on forms to file or who to contact? I tried calling EDD but... you know how that goes.
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Marcus Marsh
Man this exact same thing happened to me last year! EDD said I got overpaid like $3700 and froze my account right before rent was due. Total nightmare. You need to fax them form WG-007 (Claim of Exemption form) ASAP along with your pay stubs and bank statements to prove hardship. They actually released my levy within 48 hours after I sent that stuff in. Then I set up a $125/month payment plan which sucked but at least I could pay my bills.
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Katherine Shultz
•Thank you!!! Did you have to go into an office to get the WG-007 form or can I find it online? And do you know what fax number to send it to? I've never sent a fax in my life lol
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Hailey O'Leary
They cant just take ALL ur money thats illegal!! you have rights!! Tell them ur gonna sue them
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Cedric Chung
•This is actually incorrect and could make the situation worse. EDD has legal authority to levy bank accounts for established overpayments. However, there are exemption procedures specifically designed for hardship situations like the OP's. Threatening to sue won't help and could potentially flag the account for additional scrutiny.
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Talia Klein
First, don't panic. The law does protect some of your funds from levy. Here's what you need to do: 1. Download form WG-007 (Claim of Exemption) from the CA courts website: https://www.courts.ca.gov/documents/wg007.pdf 2. Fill it out completely, focusing on Section 5 where you detail your income and expenses to show hardship 3. Get copies of: recent pay stubs (last 2-3), bank statements showing your balance, and bills (especially rent) 4. Fax everything to EDD Collections at the number on your levy notice (usually 916-464-2994) 5. Call EDD Collections at 800-676-5737 after faxing to confirm receipt They should process hardship claims quickly. Most people with low income qualify for reduced payment plans ($100-200/month). Make sure to also request future bank levies be stopped while you're on the payment plan. Good luck!
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Katherine Shultz
•Thank you so much for this detailed info! I'll download the form today and get everything faxed over. Do you know if I can dispute the overpayment itself later, or am I basically admitting I owe by setting up a payment plan?
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Maxwell St. Laurent
been there and it SUCKS!!! edd took my money right before christmas last year can u believe that?? i had to borrow from family just to buy my kids presents
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PaulineW
Try using Claimyr to get through to EDD directly. I was in a similar situation with a bank levy and couldn't get past the automated system for days. Used claimyr.com and got connected to an actual EDD rep in about 30 minutes who explained exactly what I needed to do. They have a video showing how it works at https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. Worth it because the rep was able to flag my account as hardship review which sped everything up.
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Katherine Shultz
•I've never heard of this but I'm desperate at this point. Did the rep actually have the authority to help with the levy? I'm worried about paying for a service and still getting nowhere.
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PaulineW
•Yes, the EDD rep I reached had access to my levy info and could see exactly what was happening. She told me exactly which fax number to use (there are different ones for different departments) and put notes on my account. Made a huge difference. Worth trying if you're stuck.
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Annabel Kimball
I went through this nightmare last year. After sending in the WG-007 form with my financial documents, they released the levy within 3 business days and I set up a payment plan for $150/month. Make sure you accurately document ALL your expenses - rent, utilities, phone, food, transportation, medical, etc. The more detail you provide about your financial hardship, the better your chances of getting a lower monthly payment. One thing to watch for - they might try to set up automatic withdrawals from your account for the monthly payments. I refused this and insisted on making manual payments each month because I didn't trust them not to take extra. Haven't had any issues since. P.S. You CAN still dispute the overpayment itself through the appeal process even after setting up payments. The two processes are separate.
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Katherine Shultz
•Thank you! That's really helpful about the manual payments vs automatic withdrawals - I definitely don't want them having ongoing access to my account after this. And good to know I can still appeal the overpayment itself!
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Marcus Marsh
Quick update - I called the number on my levy notice after faxing my WG-007 and documents this morning. They confirmed receipt and said they should make a decision within 48-72 hours! The representative was actually pretty helpful and said based on my income level, I would likely qualify for a reduced payment plan. Fingers crossed they release my funds before rent is due on Friday!
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Talia Klein
•That's great news! Keep us posted on what happens. Make sure to follow up if you don't hear anything by Thursday morning.
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Chris Elmeda
why dont u just withdraw all ur money before they can take it??? thats wat i did lol
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Cedric Chung
•That doesn't work when the levy is already in place, which appears to be the case for OP. Once a bank receives an EDD levy notice, they immediately freeze the account. Additionally, attempting to evade a levy can result in additional penalties and potentially even criminal charges in severe cases. It's always better to address the issue properly through the legal exemption process.
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PaulineW
After you get this immediate crisis resolved, you should also look into filing for an overpayment waiver if the overpayment wasn't your fault. EDD form DE 1446W lets you request to have the overpayment waived if it would cause extraordinary hardship AND you didn't cause the overpayment through false statements or withholding information. Worth looking into once you get your bank account unfrozen!
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