410.561b—Fault.
Fault as used in without fault (see § 410.561a) 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 Administration will consider all pertinent circumstances, including his age, intelligence, education, and physical and mental condition. What constitutes fault (except for reduction overpayments (see § 410.561e )) 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 resulted from:
(a)
An incorrect statement made by the individual which he knew or should have known to be incorrect; 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.