2 Investigators: State Demanding Overpayments From Aid Recipients, Decades Later
(CBS) -- Can you remember financial transactions from 30 years ago? Imagine getting a bill from the government because of an error they say occurred three decades ago.
It hardly seems fair, but as 2 Investigator Pam Zekman reports, this is happening to a startling number of people.
"I have not been on public assistance or had anything to do with public assistance in over 30 years," says Cindy Garrett.
But Garrett recently received a letter from the Illinois Department of Human Services saying she owed almost $4,000 in overpayments she received for Public Aid and food stamps.
"My reaction was shock, dismay, disbelief, just totally flabbergasted," Garrett recalls.
She immediately called the agency.
"She said, 'Oh, yes, this is from 1982 to '83,'" Garrett says. "I said, 'Are you serious, are you really serious?' In 1982, my daughter was nine. She's now 43."
Garrett says no one ever told her what the mistake was or how they came up with the $4,000 figure.
The Illinois Department of Human Services says it's found more than 700,000 cases involving $500 million in overpayments dating back to the 1970s. They say they plan to go keep going after the money.
"It's outrageous and without statutory change, there isn't that much that can be done about it," attorney Dan Edelman says.
Edelman represents clients fighting private debt collection abuses. He says when it comes to government debts there are very few consumer protections.
"Unfortunately, because there's no statute of limitations on debts owed to the state or federal government, then they can just go back forever, basically," adds Edelman.
Edelman says there is a reason these bills are appearing in the mailboxes of unsuspecting citizens.
"The state needs money and somebody came up with the clever idea to extract some money, some revenue from people," Edelman says.
Which brings us back to Cindy Garrett's plight: She says she doesn't have the $3,787 to give back.
But Garrett is afraid if she doesn't pay the money back it will negatively affect her credit rating and efforts to buy a house. The Human Services Department has already turned her case over to a debt collection agency.
Now she's paying the $20 a month minimum payment to protect her credit rating while she appeals the state action.
A state spokeswoman says its collection efforts are required by the federal agencies that help fund the benefits.
She said Garrett was initially notified of the error, but like many others it can lose track of former clients and it often takes a long time to track them down until they apply for a job or file tax returns and "get back on our financial radar."
Experts say if you get a letter saying you owe money, demand written proof to document it. And you can request a hearing. The state must be able to prove you actually owe the money.
