February 11, 2010

By: Shaun Ertischek, Esq.

Even the U.S. government needs to maintain compliant collection practices.  The government has agreed to pay $7.4 million to settle a class action lawsuit brought by military veterans alleging that the government improperly seized payments (such as income tax refunds and social security benefits) from the veterans to offset debt incurred on military bases.  The lead plaintiff claimed that the debt he incurred on a base in 1993 had exceeded the ten-year statute of limitations for the offset program before the government began withholding income tax refunds in 2004.  As a result of the settlement, more than 6,700 individuals will receive $10,000 each.