CCM10430 - Penalties and Interest: Interest on Overpaid Credits – General

Interest is due on the late repayment of overpaid credits if the overpayment arises as a result of fraud or neglect by the claimant(s). If there is no fraud or neglect there can never be any interest regardless of how long it takes them to repay the overpaid credits.

In most examinations you will not have to consider interest on overpaid credits. The award will be adjusted to reflect your findings and any remaining overpayment will be recoverable after the year end.

The exception to this is where the overpaid credits are recoverable in-year – see CCM8125. Where Section 28(6) permits the overpaid credits to be recovered in-year, the due and payable date for the repayment of the overpayment is 30 days after the issue of the revised award notice. If the repayment is delayed beyond this date, then interest is chargeable.

In most enquiry settlements you will have to consider interest on the overpaid credits as interest will run from 30 days after the first specified date – see CCM11045. This remains the position even if your enquiry is not concluded until some time after the first specified date or was not opened until after that date. See CCM14330.

The claimant(s) can appeal against the imposition of interest.

Interest should not be charged where the claimant’s means are inadequate – see CCM8127 and CCM14120.

The guidance at CCM10440 and CCM10470 explains how to deal with interest in a letter of offer.