CBM130700 - Overpayments: recoverable

Note: When sending customer, staff or process data to another individual or team, make sure you follow the latest data security guidelines or contact the Data Guardian / Data Security Team for advice.

Reasons not to follow this guidance
Introduction
Guidance

{#Reasonsnottofollow}Reasons not to follow this guidance

You do not need to follow this guidance if you are yet to

  • calculate the amount overpaid
  • establish if the recoverability of the overpayment.

Note: For more information on the initial action of an overpayment, follow the guidance in CBM130200.

{#Introduction}Introduction

A recoverable overpayment is payment over £110 paid in excess of the award. The recoverable overpayment occurs through misrepresentation or a failure of disclosure of the circumstances.

{#Guidance}Guidance

Note: Should the customer offer to repay when we bring the overpayment to their attention, follow guidance for ‘voluntary offers to repay’ in CBM130500.

Proceed as follows:

  • open the correspondence indicator
  • apply any change of circumstance that is not already shown
  • input details of the overpayment using code 24 as follows:
    • the overpayment is recoverable and the account is live, pay code ‘C’ and recoverable indicator ‘C’

    • the overpayment is recoverable and the account is terminated, pay code ‘C’ and recoverable indicator ‘O’

      Note: Show the weekly amount of the overpayment.

  • set the overpayment outstanding indicator
  • input any required notes such as:
    • DMS reference
    • decision details
  • update the award as needed
  • set the Misc BF indicator.

If Guardians Allowance is overpaid:

Note: Where an overpayment of Guardians Allowance has occurred no decision letter is to be issued to the customer. A decision on the Child Benefit overpayment should be made and then the case is to be referred to the Guardians Allowance team. A joint Child Benefit and Guardians Allowance overpayment letter will then be issued.

  • refer the case to the Guardians Allowance team
  • take no further action.

Note: if you are yet to action a part non recoverable overpayment, follow the ‘non recoverable / official error’ guidance in CBM130600.

If Guardians Allowance is not overpaid:

  • issue the appropriate letter
    • DL407C for an AR9163 decision
    • CH404C for an AR9107 decision
    • DL280 for an AR9105A decision
    • DL258 for all other overpayments

  • issue an E37 to Debt Management and Banking. For more information on referring an E37 to Debt Management and Banking, follow the guidance in CBM130800

    Note: For EC cases use ‘E37EC’ found in the overall Child Benefit guidance.

  • take no further action.

Note: if you are yet to action a part non recoverable overpayment, follow the ‘non recoverable / official error’ guidance in CBM130600.