Waiver of Indebtedness Under 10 U.S.C. 2774

B-152040,B-158422: Jul 25, 1975

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Clarification was requested concerning waiver of indebtedness arising from overpayments, with particular reference to Lt. Col. Robert S. Hopkins, II. The amount of a U.S. claim against a service member arising out of overpayments of pay and allowances which is subject to consideration for waiver under 10 U.S.C. 2774 is the total amount of erroneous payments even where there were underpayments regardless of whether or not the underpayments were for the same items or the same period as those involved in the overpayments. If a member requests waiver for less than the total erroneous payment and is not aware that a setoff for underpayment has been made or of his right to request waiver for a greater amount, action should be taken on the entire erroneous payment. However, in the case of a member who knowingly requests a waiver of a lesser amount, only such an amount should be acted upon.

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