You know times are tough when even the US government is being sued for abusive debt collection practices, reports InsideARM. The U.S. government has agreed to settle a class action lawsuit brought by military vets for $7.4 million.

The issue was the government’s practice of “administrative offset,” or intercepting federal payments, such as income tax refunds and social security, to pay debts owed to the US. The vets alleged that the government miscalculated fees and interest, failed to send proper notice, and used the “offset” to collect debts that were beyond the statute of limitations. Over 6,700 vets will receive $10,000 each as part of the settlement.