6.7.2.80 Debt Recovery from Financial Institutions

Summary

This section provides information on recovering amounts that are made to a financial institution for the credit of an account kept with the institution.

Intended recipient not an account holder with the institution

If payments were made to a financial institution for the credit of an account kept with the institution and the payments were intended for someone other than the person in whose name the account was kept, Centrelink may give a written notice to the institution requiring it to pay back the lesser of the following amounts:

  • the amount of the social security payments, or
  • the amount standing to the credit of the account when the notice is given to the institution.

The financial institution would be required to repay the money within a reasonable period and this period would be specified in the notice.

Where an account with an institution is in the names of more than one person, this provision applies if the payment was intended for someone who was not one of the persons in whose names the account was kept.

Death of the intended recipient

If payments are made to a financial institution for the credit of an account that was kept with the institution and the intended recipient of the payments died before the payments were made, Centrelink may give a written notice to the institution requiring it to pay back the lesser of the following amounts:

  • the amount of the payments, or
  • the amount standing to the credit of the account when the notice is received by the institution.

The financial institution would be required to repay the money within a reasonable period and this period would be specified in the notice.

Act reference: SSAct section 1234AA Recovery of amounts from financial institutions

Last reviewed: 15 August 2016