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Proposed Law and Veterans Administration Overpayments Collection

Under a newly proposed law, veterans who are accidentally overpaid VA benefits will no longer be charged for the agency’s mistakes.  As many as 200,000 veterans have been mistakenly overpaid benefits. These overpayments forced multiple veterans into debt when the VA demanded repayment at once.

Senator Sherrod Brown has proposed legislation that would ban the VA from charging veterans for their mistaken accounting.  The VA would have to track overpayments to veterans and verify whether the agency is at fault for the mistake as well as verify whether the veteran has disputed the efforts at debt collection.  The legislation has already passed the Senate.

The VA issued a statement recently that explained it is “constantly working to improve the benefits delivery process” for veterans and veteran families.  In August 2017, the VA changed its overpayments collections policy; now, veterans who are overpaid are automatically placed into a 12-month repayment plan.  This plan provides substantial financial relief in many cases.