Request for Waiver of Debt Resulting From Erroneous Payments of Basic Allowance for Quarters

B-196226: Nov 20, 1979

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A uniformed service member requested reconsideration of the denial of his application for waiver of his debt to the United States. The debt arose from erroneous payments of basic allowance for quarters paid to him while he was occupying Government furnished quarters. The member contended that he had not suspected that he was being overpaid. At the time in question his pay account was being converted to a computerized system, and he was beginning new duties. Also, he was in the process of arranging for payment to his landlord and checking on the accuracy of his leave and earnings statements. After over a year had passed, the member determined that a possible error existed and notified authorities who found that the basic allowances for quarters were not being deducted even though the member was living in Government furnished quarters. The member contended that the computerized system had caused the error, and that he could not afford to pay the debt. Regulations provide that payment of certain debts may not be waived when there exists an indication of fault on the part of the member. The word "fault" has been held to exist if the member should have known that an error existed and should have taken action to have it corrected. In this case, it was held that the member could have reasonably concluded that he was entitled to the amount he received for the first three months of the period in question. Thereafter, however, his pay stabilized and it became clear that the Government was paying directly to his landlord. It was held that he should have realized he was receiving more pay than he could reasonably have expected. The fact that the overpayments were made due to administrative error did not relieve him of the responsibility of determining the true state of affairs, and financial hardship alone was not sufficient reason to retain the payments he should have known did not belong to him. Accordingly, waiver was granted for the first three months of the period in question; but the denial of the waiver for the remainder of the period was sustained.

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