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ESD mysteriously increased my overpayment amount by $3,000 with no explanation - anyone else?

I'm at my wits' end with this ESD overpayment nightmare. Back in 2023, I received a notice saying I was overpaid benefits. I immediately filed an appeal through eServices and confirmed it was received. Heard absolutely NOTHING for 14 months despite calling repeatedly. Then last month, I got a collections notice out of nowhere. When I called, the agent told me 'your appeal was already decided' but I never received ANY notification of a hearing or decision. They refused to give me a court date. Here's the truly infuriating part - I just received a NEW statement showing they've randomly ADDED $4,500 to what I supposedly owe! Zero explanation provided. The original amount was around $7,200 and now it's jumped to $11,700! Has anyone else had their overpayment amount mysteriously INCREASE like this? How is this even legal when they never properly processed my appeal? I've documented everything but it feels like I'm shouting into the void. I'm considering contacting my state representative because this whole process has been traumatizing. Nearly two years of stress and now they're just arbitrarily adding thousands more dollars?!

Unfortunately this is pretty common with ESD. They likely added penalties and interest to your original amount. When they determine an overpayment was due to misrepresentation (whether true or not), they can add a 50% penalty plus interest that accrues daily. Did the new statement provide any breakdown of the additional charges? You have options though: 1. Request a new appeal based on "good cause" for missing the deadline (you never received notification) 2. Request a waiver of the overpayment if it would cause financial hardship 3. Set up a payment plan to prevent collection activities If your appeal was truly filed and they never notified you of a hearing date, that's a violation of your due process rights. Document everything and contact the Office of Administrative Hearings (OAH) directly, not just ESD.

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Thanks for this info. The new statement has ZERO breakdown - that's what's so crazy! It just shows a higher amount with no explanation. I never got ANY notification about a hearing OR a decision. I've been calling both ESD and OAH for over a year. OAH says they have no record of my appeal and ESD keeps saying "we'll look into it" but never does. I'll try requesting a new appeal based on good cause like you suggested. Do you happen to know if I need a specific form for that or if I can just call and request it?

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omg they did the EXACT same thing to me!!! my overpayment was $5,300 then suddenly jumped to $8,100 with no explanation!!! i called and the lady just kept saying "the system calculated it that way" but couldnt tell me WHY. its like they just make up numbers?? ive been fighting this for 18 months now, never even had a job during covid but somehow i "misrepresented" my income. how??? its insane. good luck.

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That's awful but honestly makes me feel slightly better that I'm not the only one. Did you ever get any explanation for the increase? This whole system feels designed to just wear people down until they give up and pay.

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I'm going through something similar. It's the penalties they add, but they DON'T make it clear on the statements. The standard penalty is 50% of the original overpayment amount if they decide you "knowingly" provided incorrect info. But here's the catch - they automatically assume it was "knowing" unless you prove otherwise. THIS IS CRITICAL: You need to request your case file through a public records request. This will show whether they actually processed your appeal and what determination was made. Go to ESD website → Contact Us → Public Records. I found out they had "lost" my appeal and then made a determination without telling me. Also, there are sometimes coding errors in their system that calculate incorrect amounts. I had a friend who had this happen and got it fixed, but only after getting a state representative involved.

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Thank you for this advice! I'll submit a public records request right away. The fact that they can just add thousands in penalties without clearly explaining it on the statement seems designed to confuse people. Did you end up getting your issue resolved after you got your case file?

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I've helped several people with similar ESD overpayment issues. The increase is almost certainly the 50% penalty plus interest. Unfortunately, ESD's statements are notoriously unclear about these breakdowns. Regarding your appeal - this is a serious procedural issue. The law requires ESD to: 1. Acknowledge receipt of your appeal 2. Transfer it to OAH 3. OAH must send a Notice of Hearing 4. After the hearing, a written decision must be sent If ANY of these steps were skipped, you have grounds for a new appeal. Contact OAH directly at 1-800-583-8271 to check if they ever received your appeal from ESD. Meanwhile, to stop collection activities, you can request either a payment plan or financial hardship review. Even $5/month will stop collections while you sort this out.

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Thank you for laying this out so clearly. I definitely never received steps 2, 3, or 4! I contacted OAH multiple times and they say they have no record of my appeal ever being transferred to them. I'll call that number tomorrow morning. Would you recommend I also submit a written request to ESD documenting all of this?

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ESD IS CRIMINAL!!! Exact thing happened to me. Original amount $6740, then magically $9890 a year later. They're STEALING from people who already struggled during the pandemic. I had 5 DIFFERENT DECISIONS on my case, each one contradicting the last one!! They said I was eligible, then not eligible, then eligible with overpayment, then fully eligible, then back to overpayment!!! I FINALLY got through to someone who fixed it after TWO YEARS of fighting. Had to call literally 200+ times. The phone system is designed to keep you out.

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How did you finally get through to them? I've been calling constantly and can never reach an actual human who can help.

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I spent 3 days calling nonstop. Start at 7:55am exactly, keep redialing until 8:01, then again at 9:55am for the 10am window. The system is DESIGNED to block most callers. It's disgusting!!!

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Mei Zhang

I faced similar ESD challenges with getting anyone on the phone for my overpayment issue. What finally worked for me was using Claimyr.com - it's a service that helps you get through to ESD agents by essentially navigating their phone maze for you. They have a video demo of how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 I was skeptical at first, but I was connected to an ESD agent in about 25 minutes after trying for weeks on my own with no success. The agent I spoke with was able to access my case notes and confirmed my appeal had been received but never processed properly. This documentation was crucial for getting my case reopened.

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Thank you for this suggestion! I hadn't heard of this service before but at this point I'm willing to try anything. Were you able to get your issue fully resolved after connecting with the agent?

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Mei Zhang

Yes! It took two calls, but I finally got someone who reviewed my file completely. They discovered my original appeal was received but never correctly entered into their system. Having that documented was key - I requested they email me confirmation of what they found, which I used as evidence to request my case be reopened. Still took about 6 weeks to process, but they eventually removed the penalty portion of my overpayment and put me on a manageable payment plan for the rest.

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kinda related but has anyone noticed how they ALWAYS say they "lost" your documents?? like how convenient for them! they lost my identity verification twice, lost my appeal once, and then somehow found everything when i threatened legal action. seems like their go-to excuse when they mess up.

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omg yes!!! they told me they "lost" my income verification THREE TIMES even though i uploaded it to the portal with confirmation numbers!! its so frustrating!!!

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One important thing to note - when dealing with overpayment increases, you need to determine if they're adding what's called a "fraud penalty" (50% additional) or if they're recalculating the entire overpayment amount. In my experience, the key is getting written documentation. Every time you speak with ESD: 1. Get the agent's ID number 2. Take detailed notes with dates/times 3. Immediately follow up with an eServices message summarizing the call 4. Request all determinations in writing ESD is required to provide written explanation for all overpayment calculations. If they haven't, that's a procedural error you can use in your appeal. Also, there's a specific overpayment waiver form on the ESD website if financial hardship applies to your situation.

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This is extremely helpful, thank you! I hadn't thought about following up each call with an eServices message to document it. I'll start doing that immediately. And I'll look for that waiver form too - this amount would definitely cause financial hardship.

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Update on your options: If you truly never received notification of an appeal hearing or decision, you can file what's called a "Petition for Review" with the Commissioner's Review Office. This is different from a regular appeal. You'll need to explain that: 1. You filed an initial appeal 2. You never received notice of hearing 3. You never received a decision This can be done even after the normal appeal deadline has passed. The Commissioner has authority to determine if your procedural rights were violated. Regarding the increased amount - request an itemized statement showing exactly how the new amount was calculated. This is your right under Washington Administrative Code (WAC).

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Thank you! Do you know how I file this Petition for Review? Is there a specific form or do I just write a letter? And where exactly do I send it? The ESD website is so confusing with all these different processes.

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There's an actual form! Go to ESD website → Unemployment Benefits → Forms and Publications → search for "Petition for Review" (form number ESD 161). You can submit it by mail, fax, or through your eServices account under "Upload a Document." Make sure to include all relevant details and documentation showing your attempts to resolve this. The Commissioner's office is separate from the regular appeals process and can override previous decisions.

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