What happens if I don't pay back Washington ESD unemployment overpayment?

Don't ignore this - Washington ESD has serious collection powers. They can garnish your wages, intercept tax refunds, and even place liens on property. The debt doesn't go away and they'll add interest and penalties if you don't work something out.

same boat here, got a $3,400 overpayment notice and panicking. called them like 20 times trying to explain but can never get through to talk to anyone

You need to appeal this overpayment determination if you believe you reported everything correctly. You have 30 days from the notice date to file an appeal. Don't just ignore it because the consequences get worse over time.

If you can't pay the full amount, you MUST contact them to set up a payment plan. Ignoring it will result in: wage garnishment (up to 25% of your paycheck), tax refund interception, bank account levies, and credit damage. They can also deny future unemployment benefits until it's paid.

whatever you do dont just ignore it!! my cousin did that and they garnished his wages without warning. took 25% of every paycheck for like 2 years

I successfully got my overpayment reduced by using Claimyr to reach an adjudicator who actually reviewed my documentation. Turns out there was an error in how they calculated my earnings. Sometimes you just need to get the right person on the phone who can look at your case properly.

The state can also refer your debt to collection agencies and report it to credit bureaus. Your credit score will tank and you'll have collectors calling constantly. It's not worth it - work something out with them.

been there done that. ignored a $1,200 overpayment for 6 months thinking it would go away. spoiler alert: it didn't. they garnished my tax refund and I had to pay penalties on top of the original amount

Check if you qualify for a hardship waiver. If the overpayment wasn't your fault AND paying it back would cause severe financial hardship, they might waive it. But you have to prove both conditions.

Washington ESD doesn't mess around with collections. They have more power than regular creditors because they're a state agency. They can garnish wages without a court order and intercept state tax refunds. The debt never goes away either - no statute of limitations.

I used to work in collections (not for Washington ESD but similar) and I can tell you they will eventually get their money. The sooner you work with them the better off you'll be. The penalties and interest make it so much worse if you wait.

Pro tip: if you're going to call Washington ESD about this, try using that Claimyr service someone mentioned earlier. I wasted weeks trying to get through normally and finally got connected in like 10 minutes with their help. Sometimes you just need to actually talk to a human who can look at your specific situation.

Whatever you decide, document EVERYTHING. Keep records of all communications, payment attempts, financial hardship documentation, etc. If this goes to appeal or collections, you'll need a paper trail.

tbh the whole overpayment system is broken. they make mistakes then expect us to pay for their errors. but unfortunately thats just how it is and fighting it is usually harder than just paying

Bottom line - don't ignore this. The consequences are real and they get worse with time. Either appeal if you think it's wrong, negotiate a payment plan you can afford, or look into hardship options. But do something.