My question involves personal finance in the State of: Massachusetts
My daughter was part of the Massachusetts Department of Mental Health (DMH) system as a teenager (and young adult). She lived in a group home. She received SSI payments during this time. The group home acted as rep payee, and attached SSI payments as part of their program fees.
During her time in the program, she started working at a part time job. Her work eventually effected her SSI eligible amount; SSI started decreasing her payments. She also received overpayment notices; The rep payee acknowledged this and assured her that they would be making repayments to SS.
In 2016, after she filed her taxes she received a notification from the IRS that SSI was attaching $1291 of her tax refund for payment of her debt. Now, by this time she had left the program. In fact, at the time she left the program (March 2016) they gave her a check for as fairly large sum of money ($1291) that represented what she owed SSI. They told her she had 36 months to pay them off. Obviously, they never sent in the money as they promised.
Fast forward 2 years later and she is trying to obtain a credit card and is being denied because of late payment history. She obtained her credit reports and was surprised to discover that the issue is with SSI! The credit report shows a high amount of $1691 and a status of paid and closed Clearly, the rep payee only sent in $400 to SSI.
How do we get this removed from her credit report/history ? By the time she understood she owed that money it was already too late; IRS attached it. She had a rep payee that was responsible for managing this money; how is it she can be held this responsible? Does she really have to live with this for 7 years? What are her legal options?