Social Security halts effort to collect old debts

Published on NewsOK Modified: April 14, 2014 at 5:23 pm •  Published: April 14, 2014
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WASHINGTON (AP) — The Social Security Administration is suspending a program in which thousands of people were having their tax refunds seized to recoup overpayments that happened more than a decade ago.

Acting Social Security Commissioner Carolyn W. Colvin said Monday she has directed an immediate halt to the program while the agency does a review.

Social Security recipients and members of Congress complained that people were being forced to repay overpayments that were sometimes paid to their parents or guardians when they were children.

"While this policy of seizing tax refunds to repay decades-old Social Security overpayments might be allowed under the law, it is entirely unjust," Democratic Sens. Senators Barbara Boxer of California and Barbara Mikulski of Maryland said in a letter to Colvin.

After Colvin's announcement, Boxer said in a statement: "I am grateful that the Social Security Administration has chosen not to penalize innocent Americans while the agency determines a fair path forward on how to handle past errors."

The Social Security Administration says it has identified about 400,000 people with old debts. They owe a total of $714 million.

So far, the agency says it has collected $55 million.

The program was authorized by a 2008 change in the law that allows Social Security and other federal agencies to use a Treasury program to seize federal payments to recoup debts that are more than 10 years old. Previously, there was a 10-year limit on using the program.

In most cases, the seizures are tax refunds.

Colvin said she was suspending the program "pending a thorough review of our responsibility and discretion under the current law to refer debt to the Treasury Department."

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