Debt in grief: Centrelink's ‘insensitive’ letter adds pain to mourning daughter’s loss

When people lose a loved one, the grief can be all-consuming.

The last thing they need during such a time is additional stress, especially from unexpected and insensitive bureaucratic demands.

Yet, this is precisely what happened to a Victorian woman named Casey, whose experience with Centrelink has sparked a wave of sympathy and outrage across the nation.


Casey was already grappling with the profound loss of her mother to an aggressive form of lung cancer when she received a letter from Centrelink that added insult to injury.

The letter expressed condolences for her loss but simultaneously demanded the repayment of a $668.80 overpayment that her mother allegedly owed from December 2022.

The timing of this letter, arriving a full year after her mother's passing, struck Casey as not only insensitive but also absurd.


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Casey expressed her frustration on social media after receiving a letter from Centrelink demanding repayment of her late mother's debt. Credits: Shutterstock


Taking to social media, Casey shared her disbelief and frustration with the world.

‘Apparently, they've just noticed they've overpaid her. She has been dead for a year and they're only now coming for a debt from two years ago. I'm really, really glad to have the sympathy of Centrelink right now, she said sarcastically, before describing the letter as 'dog s***'.

Casey said she was ‘gobsmacked that this was even something I needed to worry about’.

‘Honestly, all I want is an apology, and time to heal. It's just such a traumatic situation to have continually brought up and rubbed in my face,’ she continued.

The mourning young woman, who has a younger brother, stated that her mum, who succumbed to an aggressive type of lung cancer, 'was a stay-at-home mum our whole lives'.

‘She had no savings, her estate had nothing in it,’ Casey added.


Hank Jongen of Services Australia, responsible for overseeing Centrelink, clarified that when a deceased individual has an outstanding debt, ‘we are legally required to contact the executor of their estate to see if there are sufficient funds in the estate to repay the debt’.

He mentioned that they cease pursuing debts when the estate is closed or if there are insufficient funds in the deceased person's estate to cover the outstanding amount.

‘We sincerely apologise for any distress caused and have a dedicated team available to help people experiencing difficulties,’ Mr Jongen added.


The comments on Casey's video revealed that her experience is not an isolated one.

Many Australians shared their own stories of receiving similar letters from Centrelink after the death of a loved one.

‘The same thing happened to my mum. I gave them the address of the cemetery so they could go and collect it from her,’ one commenter said.

‘We were in a similar situation, not your debt, not your problem. do not pay,’ another advised.

Yet, there were also those who defended Centrelink's actions, suggesting that the agency was simply following protocol.

‘They have rules they have to obey,’ one pointed out.

‘It's a business and they need to make sure the books are correct. Just business, don't (take) it personally. You are in Australia,’ another said, to which Casey replied, ‘If the government is so strapped for cash they should probably try taxing mining companies instead of bothering the families of deceased people for money.’

You can watch Casey’s video here:


Source: Tiktok / @seagooseeee

Casey’s story sheds light on the challenges many Australians encounter when dealing with government agencies.

While Centrelink aims to assist individuals with services like the age pension, many experience concerning issues with the agency.

Thousands of seniors are left waiting for their age pension, enduring agonising waits due to bureaucratic processes and system inefficiencies.

Additionally, numerous Centrelink customers have reported months of frustration with call hang-ups and lack of assistance, highlighting a broader issue of accessibility and customer service within the government department.
Key Takeaways
  • A Victorian woman named Casey was heartbroken after receiving a letter from Centrelink demanding repayment of her deceased mother's debt.
  • Centrelink expressed sympathy for the loss but insisted on recovering the $668.80 overpayment from December 2022.
  • Hank Jongen from Services Australia stated that they are legally required to contact the executor of an estate about outstanding debts if funds are sufficient.
  • The issue has sparked a public backlash, with many sharing similar experiences, although some acknowledge Centrelink's legal obligations.
Have you or someone you know faced a similar situation? How was it resolved? We encourage you to share your thoughts and experiences in the comments below.
 
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I spent the last months of my mother's life and the first few months after her death battling with three incompetent bureaucracies. First, I discovered Comsec had failed to pay Mum benefits she was entitled to from my later father's superannuation. When I queried them about the approx $80,000 they had deprived her of, they said (and I quote!) ""Sorry, we forgot to pay her and we forgot to tell her she was entitled to that money."" When they finally paid, after months of delay, Centrelink and the ATO immediately demanded a share. Amazing how things take so long if you have entitlements, but they can be really quick to demand payment of a claimed debt! I verified Centrelink's claim and it was paid. I ended up fighting the ATO for 8 months, compiling 2000 pages of documentation and correspondence, before they told me there was no further scope for appeal and the debt must be paid even though the combined ATO and Centrelink debts were more than the total payment. Interest was charged on the debts, but Comsec denied any liability to pay interest on the overdue benefit.
About a week later, someone from the ATO phoned at 5pm on a Friday to say he was just leaving the office and had a ''brain fart'', so went back to the office to check something. ''There's an error in the computer software,'' he said. ''It's calculating incorrectly. You were right all along. There is no debt. I'll confirm that in writing next week."
If I didn't have a background in accounting, I would have had no hope of fighting that battle. How many people are just ripped off by bureaucracies making errors?
Sadly, Mum died before the matter was finalized so she never benefited from the back payment. She lived 14 years in unnecessary hardship because of bureaucrats' mistakes.
 
too bad if you haven't got a printer or computer. What then?
If you know a friend or relative that has a laptop or a PC, then you can use a USB and go to your local library to print it. Centrelink don't make it easy, but I thought it was worth it before I received the death certificate. Every day counts with Centrelink.
 
hey, what about going after the crooks who cheat the system, that would benefit centrelink far greater than this poor excuse of recovering a debt, just a dreadful story from these fools.
 
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Reactions: OldBells and SandyM
Having work for many years fighting Social Security as they were then Centrelink I could not agree more
 
When my Father passed away/ I being the eldest of four made all the necessary arrangements and notified Centrelink .He was not living with any of us and was living in another town with a lady. Because he was not a well man she had access to get his pension for him so that when he died it was the day the pension went in his account and hot trotted down to the bank and drew that out. As it was late in the afternoon I had not contacted the bank but when I did I discovered this is what happened. When advising Centrelink that he had passed away they said they had just paid his pension that very day and it would have to be returned. Of course she said they had bills to pay and did not have it . I never heard another thing possibly because Centrelink did not have my address. WE four children paid for his funeral so there was no money we could afford to pay it back.
 
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Reactions: DLHM
I can recall a couple of times over the years when my Mother received a letter from Centrelink asking if my sister had recovered and no longer needed a disability pension. My sister has Down's Syndrome, is there a miraculous cure we don't know about?
 
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Reactions: SandyM
sorry to hear about your mother, when my father died I notified Centrelink and Vet's Affairs immediately, they ceased payments straight away. how ever he died in the middle of the fortnight and Centrelink asked for repayment of the overpayment immediately, I was actually expecting this, this is Centrelink after all. Vet's Affairs didn't.
 
If you know a friend or relative that has a laptop or a PC, then you can use a USB and go to your local library to print it. Centrelink don't make it easy, but I thought it was worth it before I received the death certificate. Every day counts with Centrelink.
Or you can use the terminals at your local Centrelink office if it is convenient. The staff are usually helpful to those who aren't tech savvy.

Possibly a little known fact but you can access websites other than myGov at these computers such as banks and email services.

Good luck!!
 
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Reactions: Penny4
My mother passed away 6 weeks ago and 1 month after her passing I received a letter that she had been overpaid $1,200.00. I was not the executor of her estate. There was no expression of sympathy
 
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Reactions: Veggiepatch
Not just Australia. The same bureaucratic crap happened to my sister when our mum died in Canada last year. I felt bad that she had to handle everything on her own as I had many dire family problems here to attend to. It would be good if the average person were made more aware of the correct procedures. Sometimes we don’t know the questions to ask and to whom. 🤷🏼‍♀️
 
Hank Jongen needs to take a long hard look at the reality of the 'Service' he oversees. Not enough staff, not enough care, and too many rules which are often open for interpretation. This is a department that many, many Australians have to have contact with. It really is a shambles, and shameful.
 
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Reactions: Penny4
This happened to a friend of mine whose son had committed suicide many years ago. On the day of the funeral addressed to him was two demand letters from Centrelink and Tax Office for money owed. They had been informed, so obviously these companies haven't got any better
 
This is ridiculous - Centrelink is fully integrated with Birth, Marriage and Death registers in each territory and state. So if person is deceased and appropriate record is created in state register, any any government agency would have access to retrieve a death certificate that stored digitally even without consent of relatives. The whole process is broken - Centrelink demand information that agency already has on their fingertips. System simply is optimised to stop any payments to people who recently died.
This is how they know who to give a cheque to assist with Burial funds. Abit of diplomacy goes along way from the Government departments.
 
It’s a matter of the timing , unfortunately. When my mum died I automatically advised Centrelink and had to go in and they took a copy of the death certificate.
 
If the deceased has been cremated, you could always take their ashes into centrelink and say ask them yourself.
 
When my mother passed I informed Telecom, by phone, that the phone would no longer be required. THE FIRST WORDS FROM THE PERSON WHO ANSWERED SAID, "WHO SHOULD WE SEND THE BILL TOO"? IT WAS FOR $15.00 I JUST HUNG UP.. This is how they train their staff to reply .
Give them the burial plot address.
Such morons.
 
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