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Repayment of overpayment
Client attended tribunal hearing re overpayment of IS because of LTAHAW. Lost case on balance of probabilities. Called to court for fraud case. This week was given a not proven verdict (Scottish Law). Client has received a letter from debt management team stating that they are going to recover overpayment by deducting from her benefits. Is there a right to recover given that she was not found guilty in fraud case or does the tribunal decision allow recovery? This is the first time I have come across this situation.
Yes, the decision as to the recoverability of the overpayment was in the jurisdiction of the tribunal. All the court has decided is that the client is not guilty of committing a criminal offence. The terms of section 71 Social Security Administration Act make it clear that a failure to disclose or misrepresentation that causes an overpayment need not be fraudulent for the overpayment to be recoverable. Unless the tribunal’s decision is successfully challenged, if it decided the overpayment is recoverable, it is recoverable
Not proven is not directly equivalent to the English not guilty, which remains an option for Scottish courts too. The three verdicts are as I understand it:
“guilty”: proved beyond reasonable doubt
“not guilty”: didn’t do it
“not proven”: may very well have done it but the evidence wasn’t enough to convict.
Assuming Scottish law to use “beyond reasonable doubt” to convict, “not proven” might easily include proof to civil standard, ie balance of probabilities.
No doubt any Scottish lawyers out there will correct me.
Client was “over the moon” with her not proven verdict. She’ll come back down to earth with a bump when I tell her that she will still need to repay. It’s a large sum of £19K+. I’m wondering about going down the bankruptcy route as she doesn’t have any assets. This may give her some breathing space. I believe that DWP can recover again after bankruptcy is discharged. I think this is a case I shall delegate to our debt adviser