India, March 22 -- Beginning March 27, beneficiaries who have been overpaid by mistake may see their entire monthly Social Security check withheld until the debt is fully recovered, a drastic increase from the previous 10% withholding limit. This new rule applies to Social Security retirement, survivors, and disability benefits, and could leave some recipients without any payment while the debt is being collected.

The policy has raised alarm among advocates and lawmakers, who warn that it could cause serious financial strain for seniors, disabled individuals, and others who rely heavily on Social Security for their income.

The new changes which will be effective from March 27, according to SSA state that any new overpayments will result...