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188.8.131.52 Alternative methods of recovery
Alternative methods of recovery
Where the preferred methods are not available a number of alternatives are permitted under the MRCA and DRCA, including:
- repayment in instalments;
- third-party payments; or
- civil recovery.
Repayment by instalments
Under the DRCA and the MRCA there are no provisions for the wages of claimants to be garnished. The only regular payments that can be reduced are those paid by DVA for compensation under the DRCA or the MRCA.
However, repayment by instalments can be arranged with the client through direct deductions from wages or salary or from funds held in a financial institution. This action is initiated at the client’s request by approaching the relevant authority. The client can, however, revoke this action at any time.
A spouse or other willing third party may offer to repay an overpayment. Before DVA can accept, the third party must be advised in writing that they are under no legal obligation to repay the overpayment and that consent can be withdrawn at any time. If consent is withdrawn, the client must be contacted and negotiations begun for recovery of the amount outstanding.
In some circumstances civil recovery can be sought through the courts, although this is a last resort. If you think legal action offers the best way of recovering debt or of potentially holding a charge over an asset in order to protect the Commonwealth’s interest, this should be discussed with DVA’s General Counsel Division.