410.561g—When an individual is at “fault” in a reduction-overpayment.
(a) Degree of care.
An individual will not be without fault if the Administration has evidence in its possession which shows either a lack of good faith or failure to exercise a high degree of care in determining whether circumstances which may cause reductions from his benefits should be brought to the attention of the Administration by an immediate report or by return of a benefit check. The high degree of care expected of an individual may vary with the complexity of the circumstances giving rise to the overpayment and the capacity of the particular payee to realize that he is being overpaid. Accordingly, variances in the personal circumstances and situations of individual payees are to be considered in determining whether the necessary degree of care has been exercised by an individual to warrant a finding that he was without fault in accepting a “reduction-overpayment.”
(b) Subsequent reduction-overpayments.
An individual will not be without fault where, after having been exonerated for a “reduction-overpayment” and after having been advised of the correct interpretation of the reduction provision, he incurs another “reduction-overpayment” under the same circumstances as the first overpayment.