Thursday, May 31, 2012

VA Demands Compensation for Overpayment

If you are a veteran receiving benefits for non-service connected pension and Aid and Attendance, the VA may make a demand to be paid back for overpayment to you. What can you do?
 
The VA can forgive any debt if there was no indication of fraud, misrepresentation, or bad faith on the part of the claimant and recovery of the debt would be against equity and good conscience.  [38 USC § 3502 and 38 CFR § 1.963(a)]. You can submit a request for the debt to be forgiven or ask that there be a “waiver of the debt.”  The request must be in writing and received by the VA within 180 days of the VA’s request for repayment .  If you fail to request that the debt be forgiven within the deadline, the VA can garnish Social Security benefits, stop your VA benefits, and garnish any tax return you may be receiving.

In summary, pay attention to your mail if you have been receiving VA benefits.  If you receive a letter stating you have been overpaid, take action so that you don't end up on the hook for the overpayment.

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