[Code of Federal Regulations]
[Title 20, Volume 2]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR404.507]

[Page 196-197]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
               CHAPTER III--SOCIAL SECURITY ADMINISTRATION
 
PART 404_FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE (1950- )
--Table of Contents
 
Subpart F_Overpayments, Underpayments, Waiver of Adjustment or Recovery 
         of Overpayments, and Liability of a Certifying Officer
 
Sec. 404.507  Fault.

    Fault as used in without fault (see Sec. 404.506 and 42 CFR 
405.355) applies only to the individual. Although the Administration may 
have been at fault in making the overpayment, that fact does not relieve 
the overpaid individual or any other individual from whom the 
Administration seeks to recover the overpayment from liability for 
repayment if such individual is not without fault. In determining 
whether an individual is at fault, the Social Security Administration 
will consider all pertinent circumstances, including the individual's 
age and intelligence, and any physical, mental, educational, or 
linguistic limitations (including any lack of facility with the English 
language) the individual has. What constitutes fault (except for 
deduction overpayments--see Sec. 404.510) on the part of the overpaid 
individual or on the part of any other individual from whom the 
Administration seeks to recover the overpayment depends upon whether the 
facts show that the incorrect payment to the individual or to a provider 
of services or other person, or an incorrect payment made under section 
1814(e) of the Act, resulted from:
    (a) An incorrect statement made by the individual which he knew or 
should have known to be incorrect; or

[[Page 197]]

    (b) Failure to furnish information which he knew or should have 
known to be material; or
    (c) With respect to the overpaid individual only, acceptance of a 
payment which he either knew or could have been expected to know was 
incorrect.

[34 FR 14888, Sept. 27, 1969; 34 FR 15646, Oct. 9, 1969, as amended at 
44 FR 34942, June 18, 1979; 59 FR 1634, Jan. 12, 1994]