7.6.2 Notices | Compensation and Support Reference Library, Overpayment Management Manual, Ch 7 Recovery and Other Methods of Finalising Debts , 7.6 Penalty Interest and Administrative Charge

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7.6.2 Notices

7.6.2.1If a recoverable debt has not been repaid and has not been waived under paragraph 206(1) (b) VEA, the Commission must write to the person in order to recover the debt. The letter that has to be sent to the debtor is called a 'first debt notification notice' (refer to this manual's Section 7.4.1 First debt notification notice). The debt repayment is payable on the 28th day after the date of the notice.

Example

If a notice is issued on 2 March, then the repayment is due on 30 March.

7.6.2.2A further notice may be issued if:

  • a debt has not been wholly repaid; and
  • the person has not entered into an arrangement to repay the debt; or
  • the person has entered into an arrangement but has failed to make a payment.

This applies to a person who is not currently in payment. In most cases where a person is in payment, recovery would be effected via instalments of pension or by another method as agreed with the person, and a further notice would not be required.

7.6.2.3A further notice should specify the following details:

  • the date the notice was issued (the date of the further notice)
  • the date the first notice was issued
  • reason the debt was incurred
  • period to which the debt relates
  • amount of the debt
  • due date of payment
  • repayment options
  • contact details for inquiries
  • effects of penalty interest and administrative charge
  • how penalty interest is calculated.

A 'first debt notification notice' may be considered a further notice if it includes details about the effects of penalty interest and administrative charge and how penalty interest is calculated.