When Recovery is Against Equity and Good Conscience

Recovery is against equity and good conscience when a without fault debtor relies on benefit payments or on notice that such payments are to be made and gives up a valuable right or changes his/her position for the worse.

Mr. Propicio Hijuelos filed for SVB, complying with all application procedures, but evidence showed he was not qualified. However, SSA erroneously notified him that he was eligible for SVB payments, and began making these payments to him. Relying on this additional income, he signed a lease on a dwelling renting for $15 (about 845 Philippines Pesos) a month more than the one he previously occupied. He was subsequently found ineligible for SVB and no benefits are payable. In this case, Mr. Hijuelos is without fault, and recovery of the overpayment is considered to be against equity and good conscience.

Obtain a completed and signed SSA-2032-BK.

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  That the person responsible for repayment is without fault; and

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  That recovery is against equity and good conscience.