July 19, 2021
July 19, 2021
In case you missed it, the Detroit News reported on Sunday, July 18th, that Governor Gretchen Whitmer’s unemployment agency will be charging some Michiganders who received overpayment on unemployment benefits during the pandemic interest on their repayments.
“Michigan’s Unemployment Insurance Agency is planning to charge residents interest on the repayment of some benefits mistakenly paid to them during the coronavirus pandemic.
The state agency said Michigan law allows it to charge 1% interest a month on an overpayment. The circumstances of each case determine when the state can begin charging interest.
But the statute also prohibits the state from charging interest for benefits paid improperly because of ‘an administrative or clerical error made by the unemployment insurance agency.’”
This news comes after the state sent letters to 648,000 Michiganders telling them they may have to repay unemployment benefits as far back as March of 2020, due to Governor Whitmer’s unemployment agency mistakenly giving out the wrong qualifying information. The state has yet to clarify whether or not they’ll pursue interest on those repayments.
“Governor Whitmer blindsided hundreds of thousands of Michiganders late last month, with the threat of having them repay unemployment benefits due to negligence at her unemployment agency,” said Eric Ventimiglia, executive director for Michigan Rising Action. Ventimiglia continued, “The news that the state will be charging interest on repayment has added unnecessary uncertainty to people’s lives, as they attempt to recover from Whitmer’s endless COVID shutdowns and restrictions.”