How does unemployment affect interest rates on NYS Department of Labor overpayment notice?
Got an overpayment notice from NYS Department of Labor last week saying I owe $2,800 from benefits I received in 2024. The notice mentions interest charges but doesn't clearly explain how they calculate the interest rate or when it starts accruing. Does anyone know how unemployment overpayment interest rates work? I'm trying to figure out if I should pay this immediately or if I can set up a payment plan without the interest killing me. The notice says I have appeal rights but I'm not sure if that stops the interest from building up.
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Dmitry Kuznetsov
NYS Department of Labor charges 12% annual interest on overpayments starting 30 days after the notice date. If you file an appeal within 30 days, interest stops accruing during the appeal process. You should definitely appeal if you think the overpayment is wrong, but if it's legitimate you might want to pay quickly to avoid the interest charges.
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Sofia Hernandez
•Thanks! So if I appeal does that automatically stop the interest even if I lose the appeal later?
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Ava Thompson
12% is brutal! I had a similar situation last year and the interest added up fast. Mine was only $1,200 but after 6 months it was almost $1,300. I ended up calling and setting up a payment plan which helped but wish I had known about the appeal option.
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Sofia Hernandez
•Did they let you negotiate the interest down at all when you set up the payment plan?
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Miguel Ramos
I've been trying to reach someone at NYS Department of Labor about my overpayment for weeks but their phone lines are always busy or I get disconnected. Has anyone found a way to actually talk to someone about these notices? I need to understand why they think I was overpaid before I can decide whether to appeal or just pay.
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Zainab Ibrahim
•I used claimyr.com to get through to an actual NYS Department of Labor agent last month. It's a service that handles the calling for you - there's a demo video at https://youtu.be/qyftW-mnTNI showing how it works. I was able to get my overpayment explanation and set up an appeal. Way better than spending hours on hold.
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StarSailor
wait so interest stops during appeals? that doesnt seem right, why would they give you a free loan basically
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Dmitry Kuznetsov
•It's because you have due process rights. If the overpayment determination is wrong, you shouldn't be penalized with interest charges while exercising your right to appeal. It's actually pretty standard for government debt collection.
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Connor O'Brien
THE WHOLE OVERPAYMENT SYSTEM IS A SCAM!!! They make mistakes all the time and then charge YOU interest for THEIR errors. I got hit with a $3,400 overpayment that took 8 months to prove was wrong but by then I'd already paid hundreds in interest because I was scared not to pay.
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Yara Sabbagh
•That's awful! Did you ever get the interest refunded after proving it was their mistake?
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