State Democrats to introduce bills on unemployment fraud scandal - WNEM TV 5

State Democrats to introduce bills on unemployment fraud scandal

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(Source: WNEM) (Source: WNEM)

Between 20,000 and 40,000 Michigan residents have been falsely accused of unemployment fraud because the automated system had run amok.

Lawmakers are trying to rectify the scandal. In Lansing on Tuesday, state Democrats introduced new legislation demanding restitution for everyone falsely accused regardless of the statute of limitations.

"The sad thing is what haven't I seen, I've seen people lose their homes. I've seen people try to go out and look for another job," said Jennifer Lord, attorney.

More than 40,000 people in Michigan are part of a class action lawsuit against the state. They claim they were wrongfully accused of unemployment insurance fraud.

"This goes on these people's credit ratings. So even if they manage to stay out of bankruptcy, they have a damaged credit rating," Lord said.

She said because of the state's mistake thousands had their lives turned upside down and denied benefits they were entitled to under state law.

The lawsuit wants the state to pay the victims the money they should have received plus 400 percent interest the state charged them.

A press conference was held on Tuesday in Lansing to take about some bills Democratic leaders want to introduce to stop something like this from happening again.

Senator Jim Ananich said on top of these people losing their jobs some of them had to file for bankruptcy, even causing some families' divorce.

He and dozens of other Democratic state leaders gathered in support of multiple bills that will help families hurt by false fraud claims from the unemployment insurance agency. The bills will be introduced in the next few weeks.

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