What happens if va overpays you

VA ntage Point. Life happens. We are all guilty of procrastinating on paperwork or forgetting to update records. While most of the time there are no consequences, that is often not the case with VA benefits.

There are any number of life events that can result in an overpayment to the VA, and these can result in changes in the amount of benefits you are entitled to receive.

It is important to let VA know whenever there is a change that could impact your benefits. Not keeping these records current can result in an overpayment. When discovered, those funds will be owed to VA, and those can often result in a deduction of the monthly benefit amount until the debt is repaid. In some situations, VA receives information from other federal agencies about changes that could impact yours benefit. When this happens, a notice will be sent to the beneficiary explaining that a potential discrepancy was found, with a proposed reduction or discontinuance of benefits.

Funds owed to VA are based on the date the event occurred, such as a change in dependents, which would have caused a reduction or discontinuation of benefits. Beneficiaries who receive an indebtedness notice from VA stating that an overpayment has taken place have 60 days to submit a Notice of Disagreement with evidence stating why the overpayment information is incorrect.

It is important to work with VA in this initial notification period before the debt moves to the next level. After 60 days, if no response is received, the debt is turned over to the VA Debt Management Center for recovery.

The center will notify the beneficiaries of the planned recovery method — either through a reduction in benefits, or a payment program. If the debt cannot be resolved, it will be turned over to the Department of the Treasury for forced collection.

In some cases, overpayments can be waived. Intentional fraud will not be waived. Veterans and other beneficiaries should check their eBenefits account to make sure the information is correct, and they should report any information that should be updated as soon as possible.

This can either be done on the eBenefits web portal, or by calling Keywords: VA overpayments. The V. Thanks Charles Stewart. I was hit with 2 overpayment collections on my credit report.

My husband was the service member who passed the Post education benefit to me. Just a I was about to graduate, he was let go from service with an OTO. I fulfilled my end of the bargain by completing the requirements of my degree. But, now they are trying to stick me with the bill.

If anything, he broke the agreement by getting let go. So, why does this not appear on his credit report and why am I at fault? I am appealing this as this is already affecting my credit and future tax refunds.

If I have to give money back for some reason, that would be devastating to say the least. If I were dead it would be good. This is maddening and grossly incompetent. And the remedy according to the VA was to submit the form that explicitly states that you want to receive compensation in lieu of retirement pay. This level of dysfunction has caused me a ridiculous amount of time, effort and financial stress.

Our veterans deserve more competence. Gary C. Krynicki I understand your frustration. It took the VA over 5 years, after I submitted and contacted the VA, on what they over paid me due to my ex. I thought it was my fault but in reality I blame VA for their incompetence even though they think they are doing the right thing in telling us how to correct and update.

The Customer service and people that are paid to execute this task is not performing their duties and we are penalized for it. I submitted all paperwork after going through divorce: separation agreement, divorce order, military pension division pay order. The statement also indicates her Survivor Benefit Plan coverage as my former spouse. It does not matter what you do they will find ways to say there are over payments, I changed status in about5 different on line and in person databases ….

Now I work full time and can not afford to go sit at the VA for hours to attempt a conversation with the DAV in Fort Worh so the VA needs to get a system…one system…other wise more vets will fall victim to the idiotic beurocracy that is the VA System. I had to repay over dollars for over payment due to getting devorced. But I have a question. Trying to get some information about VA overpayment while being in the National Guard.

Every time I call I get told that my unit has to send paperwork in, but they have no idea what to send in and to who. Who can can I speak to, so I can get some help on this? Basically it takes the VA years to get back pay from the guard over payment unless you tell your unit not to pay you for drills and your 2 weeks.

I just finish paying back pay in February for Drill pay year FY I made a post yesterday. Not sure where it went to. Maybe I was too harsh? We all share the same stories. VA should be looking for ways to help us. Reminds me of the Shawshank Redemption movie with Morgan Freeman. We just get the chance to vent with others in the same boat. They will never believe what you say to them. When I did the disagreement to pay that 11 months of back pay they said no proof of that.

I was overpaid on my pension from VA employment for 11yrs. I filed my taxes and never received any notice that my pension would be reduced at times. They tell me the overpayment can be waived if I can show it would cause hardship. Well they said I had shown that repayment would cause undue hardship due to no fault of my own BUT you guessed it…..

When is the earliest Montgomery GI Bill education benefits can be requested for a newly enrolled dependent attending an in-state public college? I have a little different issue.

In the notification letter it stated that I was being paid as a single veteran with no dependents. In some cases the VA is willing to forgive an overpayment due to mitigating circumstances. Mitigating circumstances are circumstances beyond your control that prevent you from continuing in school or that cause you to reduce credits. Mitigating circumstances include the following:. If you withdraw or drop classes after the drop period and a non-punitive grade is assigned -- and mitigating circumstances are an issue -- adequate evidence of mitigating circumstances must be provided to the VA.

If this evidence is not provided, the VA will not pay for the course or courses in question, leaving YOU responsible to pay the school for any remaining tuition and fees. The school can report your withdrawal reason to the VA if you contact your certifying official and explain it to them.

If you have already been paid for the course or courses VA will create an overpayment subject to the 6-credit hour exclusion described below from the beginning of the term, quarter, or semester.

You can only use this free deal one time though. The Debt Management Center is the authoritative source of debt collection information. You can reach the Debt Management Center at or e-mail them at dmc. Whether you need a guide on how to use your GI Bill, want to take advantage of tuition assistance and scholarships, or get the lowdown on education benefits available for your family, Military.

This also includes if you were being paid for step-children, you become divorced and the children no longer live with you. You may receive an overpayment for education benefits. You may also have an overpayment if you default on a home loan. The VA can collect these overpayments in various ways.

The VA may withhold future benefits or send this to a collection agency. The VA can also garnish wages or file a suit in federal court. They are also able to withhold approval on a VA home loan. If you receive Social Security benefits, the VA may withhold these as well.

The bottom line with payments: make sure you report any and all changes to the VA when it comes to your dependents and your income. If your payments change and you have questions, call the VA immediately. And remember, if it does occur that you have to pay the VA, they are willing to make payment arrangements if needed.