If the PC or FO certified direct payment of or paid the authorized fee to the representative
but has not released the remaining past-due benefits to the claimant, the component
responsible for the direct payment (i.e., the PC or FO) must reduce those benefits
by the overpaid amount. For example, if the remaining title II past-due benefits are
$500 and the overpaid amount is $200, the PC will subtract the $200 from the $500
and pay the claimant $300.
If the overpaid amount exceeds the amount of past-due benefits remaining, the component
that made direct payment (i.e., the PC or FO) must initiate recovery of the overpayment
from the claimant.