Refunding HB overpayment paid after Appeal

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  • #57731

    Good Morning

    I was after some advice as I am in a quandary.

    Customer appealed against large HB overpayment and won the case, so the debt will be written off. While the appeal was in process he kept making payments towards the debt, so this money needs to be refunded.

    The gentleman lives in a local authority property and normally we make refunds via the same method as HB payments were made. This would mean we send the refund to his rent account, which is in large arrears.

    He has insisted that the refund be made to his bank account, due to the large arrears I feel we should make the refund to the rent account. Before I do this, is there any legislation that shows we must refund the payment whichever way the customer requests?

    Sorry for the long speel, in two minds over this one!


    Julian Hobson

    how did he make payments towards the debt – were they paid to a sundry debt account of some description rather than the rent account ?

    you say it will be written off ? Do you mean it was deemed to be "unrecoverable" by the tribunal or does the OP no longer exist (was the entitlement decision changed ?

    I think I need to know £'s and periods of entitlement  including payments made by him  to answer properly




    Hi Julian

    Payments were made to sundry debt (SD) account.

    The overpayment has been deemed non-recoverable by the tribunal.

    The total OP was £22,264.53 for period 06.04.09 to 01.02.15. Total payment made to SD was £1089.28 from February to December 2017.


    Julian Hobson

    I think you are into debt recovery territory rather than HB stuff.

    You've got £1089.28 of his money but he owes you more than that in relation to another debt.

    If you are taking action in relation to that debt in the court then I think it is reasonable to ask the court to decide what should happen to the money you owe him on the other account.

    You can also refuse to repay him the £1089.28 because he owes you more than that in rent, he can then make a claim for that to be repaid.

    I think you need to seek some advice from your Housing legal bods, as it would not be in his interests to repay him the money and then take arrears recovery action against him that might result in the loss of his home. Hopefully common sense will prevail.   


    Thanks Julian, I will speak to the relevant people.

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