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Chloe Harris

PA UC reducing benefits for non-fault overpayment but also sent a full payment coupon? Confused!

Got a strange situation with my PA unemployment claim and I'm super confused. I have a small side business as a freelance graphic designer and I've been honest about reporting any income when filing my weekly claims. Last month, UC determined I had a 'non-fault overpayment' of about $1,250 because they recalculated some of my part-time earnings from previous months. The rep on the phone (after calling for 3 days straight!) told me they would reduce my weekly benefits by like 25% until the overpayment is paid back in full. That started two weeks ago - my payment dropped from $425 to around $320. But yesterday I got a letter in the mail with a payment coupon telling me to pay the FULL overpayment amount right away! So are they expecting me to pay the lump sum AND continue getting reduced benefits? That makes zero sense! Has anyone dealt with this kind of contradictory mess before? I'm really stressing about it because I can't afford to pay that full amount upfront.

Diego Vargas

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This hapend to me 2! Got the same payment cupon thing even tho they were already taking money out of my weekly checks. just ignore the letter, its just somethin they send out automatic. as long as ur benefits are gettin reduced ur good

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Chloe Harris

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Really? So I don't need to do anything with the payment coupon? I'm afraid of ignoring something official and then getting penalized even more. Did you call to confirm this was the right approach?

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NeonNinja

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You're actually supposed to call them about this. The system automatically sends out payment coupons for all overpayments regardless of whether they've set up a recoupment from your benefits. I had a similar situation last year with a $890 non-fault overpayment. They were reducing my weekly benefits AND sending payment coupons. When I finally got through to someone, they explained that I could either: 1. Continue with the benefit reduction (slowest method but no extra payment needed) 2. Make a partial payment to reduce the overpayment faster 3. Pay in full to stop the benefit reduction immediately It's your choice, but they should stop sending the coupons once you explain which option you're choosing. Make sure to get the rep's ID number and note the date/time of your call for your records.

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i think ur WRONG. i never called and nuthin bad happened to me. the system is just messed up and sends letters automatically. the UC ppl dont even know what theyre doing half the time LOL

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Sean Murphy

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I work as an employment counselor and see this situation all the time. The payment coupons are automatically generated by PA's outdated system regardless of recoupment status. Here's what you need to know: - Non-fault overpayments (where you didn't intentionally misreport) can be collected through benefit reduction OR voluntary repayment - If you choose benefit reduction, it will be either 1/3 of your weekly benefit rate or a negotiated amount - The coupons will keep coming until the debt is satisfied or you specifically request them to stop You should contact PA UC to confirm your repayment method is properly documented in your file. The fact that your reduction is only 25% rather than 33% suggests they may have already set up a custom recoupment plan for you. Get this documented to protect yourself.

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Chloe Harris

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Thank you for the detailed explanation! That makes me feel a bit better. I'll definitely call to confirm everything is set up correctly in their system. My anxiety was through the roof thinking they wanted the lump sum payment AND were reducing my benefits.

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Zara Khan

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If you're having trouble getting through to PA UC like the rest of us, I finally had success using Claimyr after wasting days trying to call them directly. It basically holds your place in line and calls you when an agent is available. Saved me so much time and frustration! You can see how it works here: https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2 and their website is claimyr.com. I was super skeptical at first but it actually worked when I needed to sort out my overpayment situation.

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Chloe Harris

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Thanks for the tip! I've been burning through my cell minutes trying to reach someone. I'll check out that video. Anything to avoid the constant busy signals and disconnections would be helpful right now.

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Luca Ferrari

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I HAD THE EXACT SAME THING HAPPEN!!! The whole system is a JOKE!!! They expect us to figure out their confusing nonsense while we're already struggling. I ended up making a small payment of $50 with one of those stupid coupons just to show "good faith" even though they were taking money from my benefits. The collection notices finally stopped after that, but I'm STILL waiting for them to fix an issue from 8 MONTHS AGO on my claim!!!! The entire PA unemployment system needs to be completely overhauled!!!!

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Nia Davis

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I understand your frustration, but making a partial payment when they're already recouping from weekly benefits isn't necessarily the best approach for everyone. It's better to get clear documentation about which repayment method is being used rather than doing both. Each situation is different though, and I'm sorry you've had such a difficult experience with the system.

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Nia Davis

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When I had a non-fault overpayment in 2024, I learned that PA UC isn't always great at communicating between departments. What's likely happening is that their collection system isn't synchronized with their benefits reduction system. I recommend: 1. Call and specifically ask for an "overpayment specialist" 2. Request a written confirmation of your repayment method (benefit reduction vs. direct payment) 3. Ask them to put a note in your file about which method you're using 4. Request they stop sending payment coupons if you're doing the benefit reduction Keep detailed notes of all conversations including the date, time, representative's name/ID, and what was discussed. This documentation will protect you if there are future issues.

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Chloe Harris

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That's really helpful advice, especially about asking for an overpayment specialist specifically. I'll definitely keep detailed notes of every conversation. Would you recommend sending a follow-up email to create a paper trail, or is that not possible with PA UC?

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My sister went thru this last year. The payment coupon is just a formality they have to send but if ur already getting reduced benefits u can ignore it. Unless u want to pay it all at once to stop the reduction. Its weird but thats how their system works lol

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NeonNinja

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I want to add one important detail: if you have a non-fault overpayment, there's actually no interest charged. So financially speaking, the benefit reduction method is often better than paying a lump sum (unless you really need your full weekly benefit amount). Just make sure you get written confirmation from PA UC about your repayment plan.

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Chloe Harris

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That's a really good point! I didn't even think about the interest aspect. Since it's not putting me in a desperate financial situation to have the reduced benefits for a while, that might be the best approach. I appreciate all the helpful responses here!

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I'm dealing with something similar right now! Just got my first reduced payment last week and was panicking when I saw the payment coupon in my mailbox yesterday. Reading through all these responses is super helpful - sounds like the system just automatically sends those coupons even when you're already set up for benefit reduction. I'm definitely going to call and ask for an overpayment specialist to get everything documented properly. Thanks everyone for sharing your experiences, it's reassuring to know I'm not the only one confused by this process!

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You're definitely not alone in this confusion! I'm actually going through the exact same thing right now. It's so stressful when you're already dealing with financial uncertainty and then get these mixed signals from the system. I'm planning to call tomorrow and specifically ask for an overpayment specialist like @Nia Davis suggested. Hopefully we can both get some clear answers and documentation about our repayment plans. Good luck with your call!

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Jibriel Kohn

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I just wanted to thank everyone who shared their experiences here! I was in the exact same boat - getting reduced benefits but also receiving those confusing payment coupons. After reading all your advice, I finally got through to PA UC yesterday and spoke with an overpayment specialist. She confirmed that the benefit reduction method was already set up correctly in my file and that I could safely ignore the payment coupons. She also put a note in my account to stop sending them automatically. The whole call took about 20 minutes once I got connected, and now I have peace of mind knowing everything is handled properly. For anyone else dealing with this, definitely ask specifically for an overpayment specialist - they seem much more knowledgeable about these situations than the general customer service reps.

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Norah Quay

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That's such a relief to hear you got it sorted out! I've been putting off calling because I was dreading the wait times, but your experience gives me hope that it's worth the effort. Twenty minutes with the right specialist sounds way better than hours of confusion. Did you have to wait long to get connected, or did you use any of the tips mentioned earlier about calling at specific times? I'm going to try calling tomorrow and specifically ask for an overpayment specialist right from the start.

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I'm going through the exact same nightmare right now! Got hit with a $980 non-fault overpayment last month because they "recalculated" my part-time work earnings from way back in November. They've been reducing my weekly benefits from $380 to $285, but I'm still getting those stupid payment coupons in the mail every few days. It's so confusing and stressful - like they want me to pay twice for the same thing! Reading everyone's responses here is actually really helpful though. Sounds like I need to call and ask specifically for an overpayment specialist to get this documented properly in their system. The whole PA UC system feels like it's held together with duct tape and prayers sometimes. Thanks for posting this question @Chloe Harris - at least now I know I'm not going crazy and this is a common issue with their automated systems!

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Mei Zhang

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@Mohamed Anderson I m'so glad this thread helped you too! It s'honestly such a relief to know we re'not alone in dealing with this confusing system. Your situation sounds almost identical to mine - the recalculation "thing" seems to be happening to a lot of people lately. I m'definitely planning to call and ask for that overpayment specialist tomorrow. Hopefully we can both get this sorted out quickly. The stress of wondering if you re'supposed to pay twice for the same overpayment is just awful when you re'already dealing with reduced income. Thanks for sharing your experience - it really does help to know others are going through the same thing!

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Malik Jackson

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This is such a common issue with PA UC's system! I went through something very similar about 6 months ago with a $1,100 non-fault overpayment. The automated system just keeps sending those payment coupons even when you're already set up for benefit reduction - it's like the left hand doesn't know what the right hand is doing. What worked for me was calling early in the morning (around 8:15 AM) right when they open and immediately asking to be transferred to an overpayment specialist. Don't waste time with general customer service - they often don't have the full picture. The specialist was able to confirm my benefit reduction was set up correctly and put a stop to the automatic coupon mailings. She also gave me a confirmation number for the conversation which was super helpful. Just to give you peace of mind - you're NOT supposed to pay both ways. It's either the benefit reduction OR the lump sum payment, not both. The system is just terrible at communicating this. Definitely get it documented in writing if possible. Good luck!

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