Difference between revisions of "Welfare Overpayments and Fraud (21:VII)"
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(LSLAP Chapter Update 2017) |
(LSLAP Chapter Update 2017) |
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== B. Repayment Agreements and notifications of other Overpayments == | == B. Repayment Agreements and notifications of other Overpayments == | ||
The Ministry often asks people suspected of having received a welfare overpayment to sign a repayment agreement acknowledging the alleged debt. Before signing a repayment agreement, clients should ask to review the Ministry's evidence and its reasons for the determination that there is an overpayment and, if possible, get legal advice or help from an advocate. The Ministry can often make errors in its overpayment determinations. See the Ministry's policy on recoveries and overpayments at http://www2.gov.bc.ca/gov/content/governments/policies-for-government/bcea-policy-and-procedure-manual/compliance-and-debt-management/recoveries | |||
In many situations, it is advisable to '''not''' sign an acknowledgment. However, if the client does choose to sign an acknowledgment and repay the overpayment, repayment schedules can be negotiated for as low as $10 each month. The | In many situations, it is advisable to '''not''' sign an acknowledgment. However, if the client does choose to sign an acknowledgment and repay the overpayment, repayment schedules can be negotiated for as low as $10 each month. The Ministry is not presently charging interest on repayments. | ||
== C. Appealing an Overpayment Decision == | == C. Appealing an Overpayment Decision == | ||
A welfare recipient can appeal a decision by | A welfare recipient can appeal a decision by the Ministry that he or she owes an overpayment. However, the Ministry’s decision about the '''amount''' of a person’s overpayment is '''not open to appeal''' (EAA, s 27(2) and EAPWDA, s 18(2)), although a person can apply for a reconsideration of the amount of an overpayment (for more on reconsiderations, see [[Welfare_and_Health_Supplements_(21:IX) | section IX]] below). | ||
In ''Newfoundland (Social Services Appeal Board) v Butler'', [1996] NJ No 91, the court held that the Ministry could not recover the monies paid out to Ms. Butler by mistake. Ms. Butler successfully used the defence of change of circumstance. The court held that because Ms. Butler had made expenditures that she would not otherwise have made without the overpayment, it would be unjust to force her to pay the Ministry back. Therefore, it may be that in similar situations, recipients of overpayments will not be obligated to repay social assistance for monies paid under a mistake of fact. Please note that in this case, Ms. Butler reported the income to the Ministry and the Ministry erred in not deducting it. | In ''Newfoundland (Social Services Appeal Board) v Butler'', [1996] NJ No 91, the court held that the Ministry could not recover the monies paid out to Ms. Butler by mistake. Ms. Butler successfully used the defence of change of circumstance. The court held that because Ms. Butler had made expenditures that she would not otherwise have made without the overpayment, it would be unjust to force her to pay the Ministry back. Therefore, it may be that in similar situations, recipients of overpayments will not be obligated to repay social assistance for monies paid under a mistake of fact. Please note that in this case, Ms. Butler reported the income to the Ministry and the Ministry erred in not deducting it. | ||
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== D. Welfare Fraud == | == D. Welfare Fraud == | ||
Some overpayments result not out of an honest error, but rather out of a recipient’s knowing failure to provide | Some overpayments result not out of an honest error, but rather out of a recipient’s knowing failure to provide the Ministry with accurate information about his or her eligibility. | ||
Section 31 of the EAA and s 22 of the EAPWDA set out when a person is considered to have committed a statutory offence of welfare fraud. Welfare recipients can also be charged with fraud under the Criminal Code. | Section 31 of the EAA and s 22 of the EAPWDA set out when a person is considered to have committed a statutory offence of welfare fraud. Welfare recipients can also be charged with fraud under the Criminal Code. | ||
Where the | Where the Ministry receives information regarding potential fraud or non-disclosure, it will investigate and may take one or more of the following steps: | ||
*refer to the Crown for charge approval under the ''Criminal Code'', the EAA or the EAPWDA; | *refer to the Crown for charge approval under the ''Criminal Code'', the EAA or the EAPWDA; | ||
*take civil action to recover the overpayment; | *take civil action to recover the overpayment; | ||