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VA Overpayment on Credit Report


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28 replies to this topic

#1 Ludsey

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Posted 30 May 2013 - 01:03 PM

 

Bah, DH was overpaid by a couple hundred dollars and never got around to opening a letter from VA saying he had to make arrangements. He paid it and it shows as closed on his credit report.

 

Anyone have any lunch on getting these deleted with GW letter?


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#2 Jnavarro

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Posted 05 June 2013 - 11:54 AM

Was this for the Post 9/11 GI Bill.

 

If so my buddy just called and asked them to remove based off the grounds of it was PIF.


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#3 Ludsey

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Posted 07 June 2013 - 02:12 PM

Yes, post 9/11 GI Bill. Was your friend successful in getting it removed? Sent from my iPhone using Tapatalk
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#4 Jnavarro

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Posted 09 June 2013 - 12:46 PM

Yes.
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#5 saladdin69

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Posted 11 June 2013 - 07:25 AM

Same thing, different outcome. Mine was pre 9/11 but got overpaid by like $300 for education. I moved and did not get the letter until months later, paid it in full but was to late. They refused to change it. I called multiple times but there was no way they were going to change it. Maybe times have changed.


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#6 Ludsey

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Posted 11 June 2013 - 08:20 AM

He called yesterday and he was told to dispute it with the CRA and say the VA didn't have the right address. I told him the CRAs wouldn't care, they're the "OC" and they're the ones that can change it. I'm going to have to send in a gw letter. Maybe that'll help. Sent from my iPhone using Tapatalk
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#7 Passenger25

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Posted 06 July 2013 - 04:26 PM

I am in a similar situation, and if I cannot fix it, I will be branded a deadbeat on my credit report for the next seven years because a bureaucracy overpaid me by $160 then failed to administratively recoup it in a timely fashion. As you can imagine, I am perturbed. I contacted my Representative and made a Privacy Act request with the VA within 24 hours of finding out they claimed a delinquent debt. I've spent a lot of my free time researching the CFR to see what rights I have, and there are precious few, but some of the rights I do have were violated. (See 31 CFR 901.) I may take this to OIG, as I believe I can substantiate a case of waste and abuse.

 

I encourage anyone dealing with delinquent debts from VA benefits overpayments to contact their Congressional Representative, as well. Benefits are paid by the VBA, which has been in the news recently for an atrocious backlog and for paying lavish bonuses to their executives. I believe their collection practices represent the same institutional laxness. It is our responsibility as citizens and veterans bring these events to light so our lawmakers can correct them. I also encourage anyone who has been denied the due process required by law and regulation to report it to that agency's Inspector General. They are chartered to combat waste, fraud, and abuse, but they can only do that if they are aware of what's going on in their agencies.


Edited by Passenger25, 06 July 2013 - 04:27 PM.

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#8 Ludsey

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Posted 06 July 2013 - 07:30 PM

Thank you for your response.

The interesting part is that it took the va nearly 3.5 years to process disability claim and they paid backpay for all that time (in full) instead of saying "you owe us $200, so the amount due is reduced by this much," which would have been better.

At least they had recourse to get their money, it's not like we can put backpay plus interest and fees on their CRA. I might actually contact local rep and ask for help.

Thanks again.


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#9 Passenger25

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Posted 07 July 2013 - 02:03 PM

That is interesting. I believe Title 31 CFR requires the use of administrative offset. They should have paid your husband his backpay, less the $200. That's the way it's supposed to work, that's the most efficient way to do it, and that's the way it always worked in the military, so that's how veterans expect it to work. If there is an overpayment in the military, or a deduction is not made one month, it will show up as "Debt Repayment" on the next LES. It never becomes a "debt" in the sense of creditworthiness, it's simply DFAS's way of balancing the books over time. I have learned that the VA does practice administrative offset, but they wait a number of months before they do it--just long enough to report 120 days overdue on my credit report, in my case. And they also referred the entire amount of the debt to the Department of the Treasury for collection, even after they initiated the administrative offset, so the Treasury is coming after me for money I have already repaid.

 

In your case, it sounds like they overpaid the backpay, then did not offset the overpayment from subsequent benefit payments? So they declared it "delinquent" and put it on his credit report, all while continuing to pay him? That's very similar to what they did to me. I can't accept that I can have a "delinquent debt" while an agency continues to disburse thousands of dollars to me. Even if I were not personally involved, as a taxpayer I'd be offended at the inefficient, wasteful behavior on display here.


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#10 Ludsey

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Posted 08 July 2013 - 08:17 AM

Exactly! I wondered why they'd pay thousands when $200 was due to them. When dh called them to ask if it could be removed (after the reply to original post), they told him to contact the CRAs and tell them the VA had the wrong address and for them to remove it. I was flabbergasted with the salamanderic response, told dh CRAs won't care and the OC would be the one to work with.

It also reports as a charge off since sept 2012 and he didn't receive anything to make an arrangement until this year.


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#11 Passenger25

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Posted 08 July 2013 - 02:30 PM

Who did he speak to at the VA? I spoke to a CSR at the DMC, and didn't get very far. She couldn't tell me what authorities (directives, handbooks, etc.) they were operating under, but did give me the number of a form that she said would have my due process rights. I could not find that form anywhere on the VA's web site. I also spoke to a privacy officer at VBA. He let me know the VA had started offsetting my benefits and the debt was now substantially less than what had been referred to the Department of the Treasury. And I spoke to someone at the Treasury office that does VA's outsourced collections. He told me some things that contradicted Treasury's demand letters and was a real jerk when I pointed that out. I was really, honestly trying not to be confrontational, but when he started speaking over me as if nothing I was not worthy to be heard, I let him know that was generally considered rude. I don't think he appreciated that, either.

 

Something else occurred to me today: veterans service organizations. I'm a lapsed VFW member-at-large, and I'm considering signing back up to see if I can get some attention on this matter. The strength of the ties between certain VSOs and VA leadership cannot be overstated.


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#12 jmmarkleyjr

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Posted 31 July 2013 - 01:30 PM

I am dealing with the same issue and had confirmed with a CSR over the phone that my collections notice was a mistake.  Now the "notes" on my account are missing and the CSR I just spoke with hung up on me.


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#13 Fuerza

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Posted 01 August 2013 - 10:59 AM

What a mess you guys are dealing with. My wife is a veteran and has had to deal with paying back over payments and also having to pay for schooling on our own funds because the school wants payments by XX day and VA does pay out till YY. It really is a broken system.
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#14 jmmarkleyjr

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Posted 05 December 2013 - 08:34 PM

Has anyone had any success with this stuff yet?


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#15 Ludsey

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Posted 06 December 2013 - 09:15 AM

Not us. Was thinking about disputing again and then contacting CFPB. Although va is a govt entity not sure if that'll do any good.


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#16 jmmarkleyjr

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Posted 07 December 2013 - 12:06 AM

This really screwed me.  I'm probably going to be more inclined to file for BK7 to get everything removed if I can't fix this.


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#17 Ludsey

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Posted 10 December 2013 - 12:49 AM

Well, since it's considered a govt debt, i don't think it'll be that easy. I'm still trying to come up with a strategy to tackle it once I get medical stuff taken care of in dh's reports.

My brother is also a marine who was overpaid, made a payment arrangement as soon as he was notified and it still ended up on his reports.


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#18 Passenger25

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Posted 01 January 2014 - 01:00 PM

Just checking in ... I don't have anything substantive to post at this time. But I do have encouragement. Work with your representative's office. One Congressional is an annoyance. A pattern of Congressionals, from different districts, with the same complaint, will be noticed at 810 Vermont NW. If you have evidence of specific waste, fraud, or abuse, and you can identify the statute or regulation that was violated, and describe the harm done to you, you should also contact the OIG.

Another option is to contact the media, but I am not media-savvy. I am bureaucracy-savvy.


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#19 jalva321

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Posted 01 November 2016 - 03:06 PM

Hello My Fellow Vets,

 

I have found a solution but it will involve some Prose skills, or a good Consumer Law Attorney.  I was able to sue the three CRA's for violations of the FCRA in federal court.  I've done it Prose, and whooped their butts and got it removed.  For some it will be a daunting task but just get them to settle by deleting it from your CR.  Me, well I got some cheese out of it too, and it was also removed from all three CRA.  I was overpaid by $100 dollars on my GI Bill, when I found out about it, it was reflecting 6 months of collection.  I paid it, and it shows collections paid as agree, not a good reflection on a credit report.  So I sent first a dispute letter to all CRA, then another dispute letter again to all CRA.  They refused to remove it, and I followed up with a lawsuit in Federal Court.  I cannot go into details about the lawsuit because I believe that is a violation of forum rules, and I cannot give legal advice because I am not a lawyer.  However, with a little reading you can sue for violations of the FCRA under unfair and deceptive practices, etc.  If you think you can, go for it, otherwise get an attorney and have the other side cover your attorney fees and have it removed as well.  Please also note that is was an overpayment and not a loan, so it is erroneously being reporting as a collection because you never agreed to borrow that money, and an  overpayment doesn't constitute money borrowed and legitimately can't be reported as collections for debt, etc. Also, they won't go far with it because in the end it is going to cost them way more money if your case goes to trial, and no attorney on their side is that incompetent.  Hint, hint.  Anyway, best of luck and let me know your experience. 


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#20 breeze

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Posted 01 November 2016 - 03:17 PM

Excellent work!! You can post about your own experience in court, if you believe it will not hurt you. That's not giving legal advice, that's telling what you did and what happened. We do that all the time. 



#21 CreditNewb15

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Posted 14 November 2016 - 01:43 PM

Hello My Fellow Vets,

 

I have found a solution but it will involve some Prose skills, or a good Consumer Law Attorney.  I was able to sue the three CRA's for violations of the FCRA in federal court.  I've done it Prose, and whooped their butts and got it removed.  For some it will be a daunting task but just get them to settle by deleting it from your CR.  Me, well I got some cheese out of it too, and it was also removed from all three CRA.  I was overpaid by $100 dollars on my GI Bill, when I found out about it, it was reflecting 6 months of collection.  I paid it, and it shows collections paid as agree, not a good reflection on a credit report.  So I sent first a dispute letter to all CRA, then another dispute letter again to all CRA.  They refused to remove it, and I followed up with a lawsuit in Federal Court.  I cannot go into details about the lawsuit because I believe that is a violation of forum rules, and I cannot give legal advice because I am not a lawyer.  However, with a little reading you can sue for violations of the FCRA under unfair and deceptive practices, etc.  If you think you can, go for it, otherwise get an attorney and have the other side cover your attorney fees and have it removed as well.  Please also note that is was an overpayment and not a loan, so it is erroneously being reporting as a collection because you never agreed to borrow that money, and an  overpayment doesn't constitute money borrowed and legitimately can't be reported as collections for debt, etc. Also, they won't go far with it because in the end it is going to cost them way more money if your case goes to trial, and no attorney on their side is that incompetent.  Hint, hint.  Anyway, best of luck and let me know your experience. 

 

Thanks for posting this.

I am experiencing the same situation with regard to small overpayment that was repaid immediately, then it suddenly turned into a 6 month long chargeoff.


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#22 ICANHASMUNY?

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Posted 26 November 2016 - 12:07 AM

This should all fall under the 31 State AG Agreement ,  because it wasn't a consumer credit transaction 

 

 

https://creditboards...opic=571275&hl=

 

https://creditboards...opic=572655&hl=

 

 

Do not report debt that did not arise from a contract or agreement to pay, including, but not limited to, certain fines, tickets and other assessments," the credit reporting agency document explained. "For example, library fees or fines, parking tickets, speeding tickets, and court fees or fines."

 

 

Write letters to your state AG.   EQ, EX and TU should be telling the military not to report these over payments , 

 

and Write Holly Petraus @ the CFPB too.   

 

Contact Servicemember Affairs ---   military@cfpb.gov


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#23 ICANHASMUNY?

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Posted 03 December 2016 - 12:18 PM

Any luck with this? 


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#24 CreditNewb15

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Posted 12 December 2016 - 11:53 AM

Not sure if you were asking me or not, but yes.

 

The woman I spoke to about it agreed to remove it immediately via e-Oscar. I felt confident because that seemed to be the correct terminology.

Next months reports update and it's showing $0, but it's a chargeoff/collection account/190 days late, etc.

 

I filed a complaint with CFPB (against TU and EX) and left the woman's phone number and extension.

 

They removed it within a week.


Edited by CreditNewb15, 12 December 2016 - 11:54 AM.

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#25 OmniCamaro

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Posted 02 February 2017 - 05:50 PM

Awesome work on those that solved this!  Huge applause to you!

 

The amount of horrible treatment the VA gets away with is, well horrible.  Laws need to be changed when it comes to VA payments to include back payments and the, again horrible amount of time they put us veterans in the hole financially.  Holding back pay for years is damaging to anyone in a disability situation, believe me.  Back pay does nothing for the damage to our credit reports.  Anyway, good on those that figured it out!


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