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Overpayment and Restitution

Overpayment and Restitution

An overpayment occurs because you were paid unemployment benefits you were not entitled to receive. Restitution is the repayment of unemployment benefits that were paid but you were not entitled to receive.

For example, an overpayment may occur if you made a mistake when certifying for benefits, if you were not able or available to work, or you knowingly gave false or misleading information when filing a claim. 

If you were overpaid unemployment benefits, you will receive a letter notifying you of the overpayment and how to start the repayment process.

For questions, call the Benefit Overpayment Collection Unit at 1-866-500-0017 (TTY customers use 1-866-366-0004).

An Overpayment Journey and Your Rights Explained

  • What could happen if you must repay benefits?

    If you are receiving unemployment benefits while you have an overpayment, a percentage of your weekly benefits may be taken for repayment (this is called recoupment). This could be up to 50% or 100% if fraud was involved. 

    For all programs for which interest is charged, the interest rate is 1% per month. Interest accrues daily but will be capped at 50% of the principal amount.

    If you do not repay benefits, this can also result in:

    • Garnishment of your wages.
    • Interception of Federal and State of Michigan income tax refunds.
    • Garnishment of lottery winnings in excess of $1,000.

  • Protest/appeal the overpayment with Form 1733

    If you disagree with the determination or redetermination on whether you are eligible to receive benefits, you can file a protest or appeal. 

    The Agency must receive your protest or appeal within 30 days from the date on your determination or redetermination letter. If your protest or appeal is late, you also need to explain why you missed the deadline. 

    Need more information?

    • UIA’s Protest and Appeals webpage explains the process. 
    • Our Advocacy Program offers no-cost legal help to those who qualify with their appeal hearing before an Administrative Law Judge with the Michigan Office of Administrative Hearings and Rules (MOAHR).

  • What if I cannot afford to repay the benefits I received?

    You can request to waive repayment of your benefit overpayment balance due to financial hardship. You can make the request from the UI Claim screen in MiWAM under the Claimant Services tab. If your financial hardship waiver is denied, you can protest the waiver denial with Form 1733. Collections will not begin until all protest and appeal rights are exhausted.

    Note: Continue to monitor your MiWAM account and make sure your contact information is updated in case you must provide additional information.

  • Where can I mail documents?

    Make your check or money order payable to "State of Michigan" and mail to:
    State of Michigan
    Unemployment Insurance - Restitution
    Dept. No. 771760
    PO Box 77000
    Detroit MI 48277-1760

    Mail requests and correspondence to:
    Benefit Overpayment Collection Unit
    UIA
    P.O. Box 169
    Grand Rapids, MI 49501
    FAX: 517-636-0427

Why do I have an overpayment on an old Pandemic Unemployment Assistance (PUA) claim?

Under the federal PUA program, people filing for unemployment benefits could verify eligibility themselves using key documents needed to make a timely decision. This included proof of employment prior to filing for unemployment benefits. 

An overpayment could have been established if UIA was not provided proof that you had employment that was directly affected by the COVID-19 pandemic or that your earned income supporting an increased benefit rate. 

Also, UIA was not permitted to collect overpaid benefits for three years and the Agency is now collecting overpayments as far back as March 2020. See an overpayment collections FAQ in English, en español and عربي.