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DWD error causes unemployment payments to be added, withdrawn in some accounts

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MADISON, Wis. (CBS 58) -- There was some confusion Thursday for US Bank customers expecting federal unemployment money.

The Department of Workforce Development said a "technological malfunction" caused them to disburse double Federal Pandemic Unemployment Compensation (FPUC) payments into some US Bank accounts.

Those payments were later removed.

In a release, the department says they're working with US Bank to "redistribute appropriate funds as soon as possible."

This is Kasey Miller’s first time receiving unemployment.

“Not having any income coming in, it’s difficult. It’s scary," Miller said.

Thursday morning she said she received three, much needed, payments to her US Bank account.

“So me and my husband went and got groceries," she explained.

When she returned home, she geared up to start paying other bills but was shocked when she checked her account again.

 “And they had taken out the $600, all three deposits, out," she said. "They withdrew all three of them.”

The Wisconsin Department of Workforce Development told CBS 58 the "malfunction" caused a doubling in direct deposits to more than 39,181 claimant accounts Wednesday night. The mistake was corrected the next day after someone reported the error.

"It was depressing. Very depressing," Miller said."

US Bank credits were processed earlier than the scheduled Friday deposit for other banks.

Overpayments were made to 2,340 US Bank customers.

The DWD said it worked with US Bank to redistribute benefits, and all claimants should have gotten paid by Friday morning.

Miller did get her money.

“I finished grocery shopping and paid my bills," she said.

In Wisconsin, the federal payments will stop the week of July 25.

Read the Wisconsin Department of Workforce Development's full statement, sent Friday April 5, below:

"The Department of Workforce Development released an update today on its efforts related to remedying the situation related to overpayments of unemployment insurance benefits paid to 2,340 claimants at US Bank yesterday.

DWD experienced a technological malfunction that disbursed double Federal Pandemic Unemployment Compensation (FPUC) direct deposit payments processed to 39,181 claimants late Wednesday night. DWD learned of the error from a claimant who reported the overpayment around 11:15 a.m. Thursday and took action to reverse all direct deposits by 1 p.m. Only deposits made to US Bank accounts were processed before DWD recovered the payments because those who do not bank at US Bank were scheduled to receive their direct deposit Friday.

DWD confirmed a programming error Thursday afternoon and worked with US Bank to redistribute retroactive FPUC benefits Thursday night so all claimants received benefits Friday morning. This includes US Bank customers and customers of other financial institutions. US Bank also agreed to waive any overdraft charges on affected members' accounts. The Department continues to evaluate the system to identify and address any outstanding issues.

FPUC is a new temporary supplemental benefit program created by the federal government that offers claimants an additional $600 per week. DWD is processing $425,000,000 in retroactive weekly payments. $108,332,461 has processed successfully since Tuesday. Final payments are scheduled to be paid by May 7.

The Department of Administration will conduct a comprehensive management audit of the UI payment programs to ensure similar issues do not happen again.

State unemployment benefits are paid by the UI Trust Fund, which is funded through employer payroll taxes. FPUC benefits are funded by the federal government."

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