The PPF has published a guidance note confirming its intention to recover overpayments from the Financial Assistance Scheme (FAS), which the PPF now administers. Since FAS is funded by taxpayers, it is under a duty to pursue the recovery of any overpayments, in accordance with HM Treasury’s ‘Managing Public Money’ document, published in 2007.

The FAS may waive an overpayment in the following circumstances:

  • if recovery would cause hardship to a member or to their family;
  • if there is a legal reason to do so, for example estoppel or change of position;
  • where the Limitation Act 1980 prevents a claim by FAS for repayment; or
  • where it is not cost effective to pursue repayment.

FAS expect members to have acted in good faith, for example to have contacted FAS if their assistance payment doubled from the previous month without reason. But good faith will not be a sufficient reason of itself for FAS to waive repayment.