CCM10715 - Penalties and Interest: Incorrect Claims - Establishing Which Behaviour Category Applies - Enquiries or Examinations

In cases where there has been an Incorrect claim, an opening letter will have been sent to the claimant along with a WTC7. The WTC7 explains the claimants rights and the reasons why a penalty may be charged.

If you become aware of the possibility of penalties during a telephone conversation with the claimant(s) and the WTC7 has not been sent you will need to warn the claimant of their position and remind them of the Human Rights Act, or stop the conversation and say you will be putting your thoughts in writing.

Where a behaviour category leads to a penalty, you must apply the guidance in the CCM in a consistent, fair but firm manner. Although you might understand why the claimant made a wrong claim this should not affect the consequences of them doing so. Your role is to explain what they have done wrong, correct this for the future and deal with the past.

You should always record the reason for your decision to charge a penalty on form 94NTC. You should also always record the reason for your decision not to charge a penalty with a note on file, as the repetition of a particular behaviour can influence the amount of a later penalty.

(This text has been withheld because of exemptions in the Freedom of Information Act 2000)