First steps to recovery of overpayment from a claimant

The steps to take in the recovery of overpayments detailed below are expected of the MRCC delegate unless specified otherwise.  The steps required are detailed by way of a checklist in the order of action required as well as detailing involvement by relevant parties.

In line with the no surprises approach the Department requires of delegates, claimants/veterans should always be contacted by telephone in the first instance.  Where telephone contact has been unsuccessful on 5 different occasions on at least 3 different days standard letter OP Advice to claimant is to be used.

If a claimant is in receipt of fortnightly payments and contact remains unsuccessful write to the claimant as per standard letter Reminder to client and take appropriate action as detailed in the letter.

Given the transient lifestyle of some claimant's it is important whenever you are speaking to them to check their contact details are up to date.

A delegate must approach debt recovery mindful that the intention of recovery is never to cause the claimant financial hardship.  The recovery process should be a cooperative one in which a reasonable rate of recovery can be negotiated and agreed with the claimant and written into a Recovery Plan.  It is expected that the Initial Action by Delegate detailed at 2.2.2 will be completed within a week from the date the delegate has become aware of the overpayment.

A decision made regarding the recovery of an overpayment is not subject to reconsideration and appeal.  Monies due to the Commonwealth must be repaid.  However the mode of recovery can be reviewed i.e. frequency, amount and method can change in agreement with the claimant in line with what is considered reasonable.

The first steps to take are: