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Molly Chambers

ESD still charging interest after OAH judge ruled in my favor - tax refund interception risk?

I won my appeal against ESD for pandemic benefit overpayment in December 2024, but they're still sending me monthly statements with growing interest! Back in August, I was hit with a $5,800 overpayment notice claiming I wasn't eligible for PUA benefits I received while my salon was closed. I immediately filed both an appeal AND submitted a financial hardship waiver in September (covering all bases). The OAH hearing was in November, and the judge explicitly ruled I WAS eligible and the overpayment was invalid. I have the written decision and everything. Yet here I am in February 2025, STILL getting threatening letters saying I owe the full amount plus interest! I've called ESD six times but either get disconnected or told "it's still processing" with no timeline. I'm terrified to file my taxes because I've heard they can intercept tax refunds for unemployment debts. As a single mom with three kids, I NEED that refund for catching up on winter bills and getting the kids new shoes (they've outgrown everything!). Has anyone dealt with this disconnect between an OAH victory and ESD still trying to collect? How long does it take for them to process a judge's ruling? Should I delay filing taxes?

This kind of administrative disconnect happens ALL THE TIME with ESD. The system that generates the billing notices doesn't automatically update when an OAH judge rules in your favor. What you need to do is fax (yes, fax!) a copy of your OAH decision to the ESD Collections department at 800-301-1796 with a cover letter clearly stating: 1) Your full name, 2) Your ESD claim ID, 3) The OAH docket number, and 4) A request to immediately stop collection activity based on the judge's decision. Also call the ESD Collections unit directly at 866-697-4831 - they're a different department than the regular claims agents. Don't delay filing your taxes, but do include Form 8379 (Injured Spouse Allocation) as a protective measure if you're filing jointly. The OAH decision is legally binding, so you WILL get this resolved, but you need to be proactive about pushing it through the bureaucracy.

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Thank you so much for these specific steps! I had no idea there was a separate collections department with their own fax number. Do you know if I can email them the OAH decision instead? My local library charges $2 per fax page and my decision is 8 pages long. Also, how long after faxing should I wait before calling the collections number you mentioned?

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omg i went thru the EXACT same thing last year!!! judge ruled in my favor in october but i kept getting the stupid bills til march!!! ESD is so broken its not even funny. i called like 20 times and nobody could help. finally i just went IN PERSON to the worksource center and showed them my judge paperwork and the lady there was super nice and called somebody internal who finally fixed it. took like 2 hours of sitting there but it worked. def dont wait on this bc they CAN take ur tax refund even if ur not supposed to owe them anything!! happened to my cousin and it took her 6 months to get her money back!

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Going in person is a great idea I hadn't considered! Did you need an appointment at WorkSource or could you just walk in? The nearest one is about 45 minutes away from me, but it might be worth the drive if I can get this fixed.

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i just walked in! but i went early like right when they opened at 8am. bring ALL ur paperwork especially the judge decision and any letters they sent u. and be super nice to the people there cuz they deal with angry people all day lol

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I had a similar situation with ESD overcollection last year, and after weeks of trying to call with no success, I finally used Claimyr.com to get through to an actual ESD agent. It costs a bit, but they got me connected to a live person in under 10 minutes when I had been trying for days on my own. They have a video demo at https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 that shows how it works. Once I got through to a real person who could see my account notes and the OAH decision, they were able to put a hold on collections while the decision was processed. Much easier than driving to an office or waiting for faxes to be processed.

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Does that Claimyr thing actually work? I've seen it mentioned before but was worried it might be a scam or something. Did they need any personal info from you?

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It's definitely legit - they don't ask for any sensitive information like your SSN or anything. They just connect you through their phone system to ESD's actual phone lines and get you past the busy signals. I was skeptical too but was desperate after trying for a week straight to get through.

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This is unfortunately a common issue with ESD's systems not communicating properly with OAH decisions. Here's what's happening: Even though you won your appeal, there are TWO separate processes that need to be closed: 1) The appeal decision must be properly processed in ESD's benefit system, and 2) The collections activity needs to be separately halted. Technically, you shouldn't need to take additional steps since ESD should implement the judge's decision automatically. However, in reality, many claimants experience exactly what you're describing. The fastest solution is to do ALL of the following: 1. Call the ESD Collections unit directly (866-697-4831) 2. Submit your OAH decision to ESD via their secure message portal (upload as PDF) 3. Also mail a physical copy to: Employment Security Department, Benefit Payment Control, PO Box 9046, Olympia, WA 98507-9046 Regarding your tax refund concerns - yes, ESD can and does certify debts to the Treasury Offset Program which would intercept your federal tax refund. However, you can request a 60-day hold on collection activities while your case is being reviewed. Make this request specifically when you contact collections. Don't delay filing taxes, but if you're worried, you can file IRS Form 8379 as a protective measure. You are legally entitled to have this fixed based on the OAH decision.

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Thank you for such a detailed explanation! I didn't realize there were two separate systems that needed updating. I'm going to try all three methods you suggested - hopefully one of them will work. Do you know if I should mention my pending waiver application as well? I submitted that before I even knew I'd win my appeal case.

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Yes, definitely mention the waiver application too! Since you've already won your appeal, the waiver may be moot (since there's technically no valid overpayment to waive). However, having it noted in your file provides another layer of protection. Ask them to check the status of both processes when you call. The more documentation trails you have, the better.

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ESD IS A COMPLETE DISASTER!!!! I won my appeal in 2023 and they STILL garnished my wages for THREE MONTHS after the judge ruled in my favor!!!! I had to hire an attorney who threatened to sue them for violating the Administrative Procedure Act before they finally fixed it and refunded all the money they wrongfully took. They are DELIBERATELY slow-walking these corrections because they want to keep collecting money even when they're legally not supposed to. The whole system is corrupt and they know exactly what they're doing. DOCUMENT EVERYTHING and if they intercept your tax refund, immediately file a formal complaint with the state Ombudsman's office AND contact your state representative. That's what finally worked for me.

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I think calling it 'corrupt' is a bit much. The systems are just old and don't talk to each other well. I used to work in state government (not ESD), and trust me, it's incompetence, not malice. They're using computer systems from the 1990s that have been patched together with digital duct tape.

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Call it whatever you want but when they KNOW there's a problem and do nothing to fix it for YEARS that's not just incompetence anymore. And when people's livelihoods and ability to feed their kids is at stake they should be held accountable. Corrupt, incompetent, broken - doesnt matter what word you use when the RESULT is the same.

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Update: After reading all your advice, I tried calling the Collections number, but after 45 minutes on hold, I got disconnected. So I decided to try the WorkSource office route this morning. I arrived right when they opened, and though they initially said they couldn't help with ESD collection issues, when I showed them the OAH decision, one of the staff members was kind enough to make an internal call. She spoke to someone for about 10 minutes, and then told me they've put a 60-day hold on any collection activity while they process the OAH decision! She also gave me a direct email address for the collections department where I could send my OAH paperwork. I'm feeling much more hopeful now! I'll still include Form 8379 with my taxes just to be safe, but at least there's some movement. Thank you all for your help!

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That's great news! A 60-day hold should give them enough time to properly process everything. Make sure you get some kind of confirmation in writing about that hold - either an email or a letter. And definitely still send in that documentation to the collections email they provided. Glad the WorkSource route worked out for you!

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yay! so glad it worked!! the worksource people are usually super helpful its just the main esd phone people who can never do anything lol. definitely keep that email address for future reference!!

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So glad you got some movement on this! The 60-day hold is a huge relief - that should definitely protect your tax refund while they sort everything out. I went through something similar last year and the WorkSource route was the only thing that actually worked for me too. Those front-line staff members often have better internal contacts than the general ESD phone lines. One thing I'd add - when you email that collections address with your OAH paperwork, make sure to also include your claim ID number and explicitly request written confirmation that the overpayment has been reversed and removed from your account. Sometimes they'll process the hold but forget to actually update the underlying debt record. Getting that confirmation in writing will save you headaches down the road if any other collection notices slip through. You're doing everything right by still including Form 8379 with your taxes as a backup. Better safe than sorry, especially with kids depending on that refund! Keep us posted on how it goes - your experience might help other parents dealing with the same bureaucratic nightmare.

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