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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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Anastasia Popov

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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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