If the Veterans Administration (VA) claims that they overpaid your VA disability benefits, they will send you a letter advising you of this and that they will deduct a portion of the overpayments from your monthly benefit check. Fortunately, you have options. You can dispute the overpayment, ask for a waiver of the requirement that you repay it, and make an offer of compromise.
How to Dispute That You Were Overpaid
You have the right to dispute that you were overpaid or that the amount they want you to pay back is accurate. If you plan to dispute the overpayment, you need to send the VA written notice of your dispute and request that they send you written documentation of how they calculated your overpayment. Once the VA receives your notice, they must conduct a review of their determination.
If you dispute the overpayment within 30 days of receiving the VA’s letter, they cannot collect any money from you until your dispute is resolved. Once they complete their review, they will prepare a Statement of the Case, which is an explanation of their decision and a notice of your right to appeal their decision.
How to Request a Waiver of the Overpayment
You can request a waiver of the overpayment at the same time that you dispute it and should take both actions simultaneously. Here’s how to request a waiver:
- You have 180 days from the date of the notice of overpayment to file a request for a waiver. However, it is best to file it within 30 days so that the overpayment is not deducted from your benefits while the VA considers your request.
- You have the right to request a hearing and should file it in writing within 30 days of the letter advising you of the overpayment to avoid the VA from deducting the overpayment from your benefits.
- You should submit your request in writing on the Statement in Support of Claim form. In your request, you should explain how the overpayment would be a hardship for you and how it would prevent you from paying your housing, food, or other essential costs.
- The VA will consider a number of factors, such as whether the overpayment was your fault and whether the overpayment would cause you to suffer undue hardship in making its decision.
Making an Offer of Compromise
Another option is to make an offer of compromise where you agree to pay less than the full overpayment in a lump sum payment. If the overpayment is less than $100,000, the VA has the authority to settle for less than what is owed.
Did you receive a letter from VA advising you that they overpaid you? Call our Roswell office or start a live chat to schedule a free consultation with a member of our skilled legal team to discuss your legal rights and the options that are best for you.