Social Security mistakenly deposited large amount after I gave up guardianship - how do I return it without a 4-hour office visit?
My sister receives $165/month from Social Security and has been in an assisted living facility since February. I was her representative payee until last month when I arranged for the facility to take over managing her SS benefits through their resident trust account. Made sense to close the joint bank account we shared and let them handle her monthly allowance directly. But here's the crazy situation - RIGHT after I was removed as payee, Social Security deposited a massive amount (over $9,400!) into our joint account that's still open. I immediately called SSA to report their mistake, but they refused to speak with me since I'm no longer her payee! I kept explaining I was trying to RETURN their money but the agent wouldn't budge. The facility administrator managed to call and confirm with SSA that it was indeed an error. But their "solution" is ridiculous - they want me to: 1) Drive to my bank (45 mins away) to get a cashier's check made out to SSA 2) Drive to the nearest SS office (almost 2 hours each way) to physically hand them the check This is completely unreasonable! I'm also caring for my 92-year-old father at home who needs constant supervision. Taking a full day for their mistake just isn't possible. Can't they just withdraw the funds electronically since THEY made the deposit error? Or let me mail the check to them? I'm worried about getting threatening overpayment letters if this drags on, but there has to be a better solution than wasting an entire day at a Social Security office because of THEIR mistake. Any advice on how to resolve this without the road trip from hell?
23 comments
Harper Collins
omg that's so frustrating!!! had similar issue but it was only $340 they overpaid my dad. they sent a letter with instructions to mail a check to the regional processing center. dont know why they're making you drive all that way!
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Donna Cline
•That's what I was hoping for! Just a mailing address would make this so much easier. Did you just mail it to the address on the overpayment letter?
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Kelsey Hawkins
This is a situation where their left hand doesn't know what the right hand is doing. Here's what you should do: 1. Call the SSA's main number (1-800-772-1213) and specifically ask for the "Debt Management Section" - they handle overpayments and can give you the correct mailing address for returning funds. 2. Request they send you a formal overpayment notice with payment instructions - they're required to do this before collecting. 3. Ask if they can process an electronic withdrawal since they deposited electronically (sometimes possible with the right department). 4. Get everything in writing and document all calls with names, dates and reference numbers. The field office staff often don't know all the procedures for handling these situations, which is why you're getting the runaround.
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Donna Cline
•Thank you! I didn't know about the Debt Management Section. I'll try calling that specific department tomorrow morning. Really hoping they can just withdraw it electronically since that would be simplest for everyone. I'll definitely keep records of the calls too - learned that lesson the hard way!
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Dylan Fisher
I work in elder law, and unfortunately this is typical SSA bureaucracy. While the previous commenter's suggestion to contact the Debt Management Section is good, you should also consider these points: 1. Since you're no longer the official payee, you technically shouldn't have access to those funds. The facility (as new payee) should be involved in returning the money. 2. Make sure you get a receipt if you do return the money - people have had SSA lose track of repayments. 3. Consider asking your bank if they can issue a stop payment or return the direct deposit as unauthorized since it was made after your payee status ended. The facility should be more helpful since they're now responsible. Put some pressure on them to assist with the resolution.
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Donna Cline
•That's a really good point about my technical access to the funds now. The bank account is still open and I'm still on it (just closing it after this is resolved), but you're right that the facility should be more involved. I'll talk with the administrator tomorrow about whether they can handle returning it since they're now the payee.
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Edwards Hugo
OMG the SSA is THE WORST!!! they did something similar to my cousin and then had the nerve to charge him interest on the "overpayment"!!! fight this hard and dont let them make YOU do all the work for THEIR mistake!!! typical government BS if you ask me
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Dylan Fisher
•They can't legally charge interest on Social Security overpayments unless it involves fraud. They may have applied a penalty for late repayment if he received notices and didn't respond, but that's different from interest. You can request a waiver of recovery if the overpayment wasn't your fault and repayment would cause financial hardship.
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Gianna Scott
I had to deal with the SSA for my mom's benefits and was getting nowhere with the phone system. Literally spent hours on hold only to get disconnected. A friend told me about a service called Claimyr (claimyr.com) that got me through to a real person at SSA in under 10 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU Saved me so much frustration when dealing with mom's survivor benefits mixup. Might be worth it to get this sorted without the road trip, especially since you're caring for your dad too.
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Donna Cline
•This sounds like exactly what I need! After three attempts today and getting disconnected each time after 30+ minutes on hold, I'm at my wit's end. Going to check out that video now. Thanks so much for the recommendation!
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Alfredo Lugo
As a former SSA employee, I can tell you there's a specific process for this situation. When funds are incorrectly deposited after a representative payee change, the proper protocol is: 1. The payment should be returned through the Treasury Department's Reclamation process, not by you personally driving to an office. 2. Call 1-800-772-1213 and request to speak with a Title II Claims Specialist specifically about a "direct deposit reclamation for incorrect payee situation." 3. The Claims Specialist should be able to initiate a DD-RTN (Direct Deposit Return) form and provide you with a confirmation number. 4. You may need to visit your bank with this form/number, but you shouldn't need to visit an SSA office. The field office gave you incorrect information. This happens because most employees only deal with certain types of situations regularly and may not know all procedures.
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Donna Cline
•Thank you so much for this detailed information! It's incredibly helpful to hear from someone who actually worked at SSA. I'll specifically ask for a Title II Claims Specialist and mention the DD-RTN form. This sounds much more reasonable than what they initially told me to do.
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Harper Collins
•wow is there anything they actually train the people who answer the phones?? every time i call i get different answers!!
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Alfredo Lugo
•Unfortunately, SSA has been severely understaffed for years. Many phone representatives are relatively new and haven't been trained on all the specialized procedures. The best approach is always to ask for a specialist who handles your specific issue type rather than taking advice from the first person who answers.
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Sydney Torres
Have you considered just keeping the money in the account until they figure it out themselves? My aunt got an overpayment once and she just left it untouched, and about 2 months later they automatically withdrew it. They might do that in your case too since it was clearly their mistake and they already know about it. Just a thought if you want to avoid all the hassle of trying to return it proactively.
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Kelsey Hawkins
•This is extremely risky advice. The SSA doesn't typically withdraw funds automatically unless they've already established a specific repayment plan. If the money sits in the account, it could trigger their overpayment collection process, which can include: 1. Withholding future benefits 2. Tax refund interception 3. Administrative wage garnishment 4. Referral to credit bureaus Being proactive about returning improper payments is always the better approach, especially with a large sum like this.
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Donna Cline
•I'd be too nervous to just leave it sitting there, especially since I'm trying to close that account. But thanks for sharing your aunt's experience - interesting that they did automatically withdraw it in her case.
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Edwards Hugo
my cousin works at our local SSA and says they're SWAMPED with overpayment cases right now... like literally thousands of them. probably why they're giving you the runaround. they don't have enough staff to handle all the mistakes they're making!!
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Dylan Fisher
•This is accurate. SSA has been dealing with staffing shortages while simultaneously handling a surge in overpayment cases. The pandemic disrupted their normal income verification processes, leading to many incorrect payments that are just now being identified. It's creating a significant administrative backlog.
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Harper Collins
this happened to my neighbors brother and SSA ended up sending him to COLLECTIONS even tho he tried to return the $$!!! make sure u get EVERYTHING in writing!!!
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Donna Cline
•That's terrifying! I'm definitely going to document everything and get confirmation numbers for all calls. I don't want this hanging over my head for months or years.
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Kelsey Hawkins
Based on your latest responses, I think you've got a good plan forming. To summarize the best approach: 1. Use Claimyr to get through to SSA quickly (worth it to avoid hours of hold time) 2. Ask specifically for a Title II Claims Specialist about direct deposit reclamation 3. Request the DD-RTN form process as mentioned by the former SSA employee 4. Keep detailed records of all communications 5. Follow up with the facility administrator since they're now the official payee This combined approach gives you the best chance of resolving this efficiently. Please let us know how it goes - your experience might help others in similar situations.
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Donna Cline
•Thank you for summarizing this so clearly! I'll update once I get this resolved. Everyone's advice has been incredibly helpful and given me a much clearer path forward than what I started with.
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