---
kind: "section"
citation: "38 U.S.C. § 5302B"
title: "38"
title_heading: "Veterans’ Benefits"
number: "5302B"
heading: "Prohibition of debt arising from overpayment due to delay in processing"
release: "119-102"
url: "https://uscodex.org/usc/38/5302B"
units:
  - "Part IV — General Administrative Provisions"
  - "Chapter 53 — Special Provisions Relating to Benefits"
---

# §5302B. Prohibition of debt arising from overpayment due to delay in processing

- (a) **Limitation.—**
  - (1) Except as provided in [paragraph (2)](#a-2), no individual may incur a debt to the United States that—
    - (A) arises from the participation of the individual in a program or benefit administered by the Under [Secretary](/usc/38/101.md?p=1) for Benefits; and
    - (B) is attributable to the failure of an [employee](/usc/38/4303.md?p=3) or official of the [Department](/usc/38/101.md?p=1) to process information provided by or on behalf of that individual within applicable timeliness standards established by the [Secretary](/usc/38/101.md?p=1).
  - (2) Nothing in this section shall be construed to affect the penal and forfeiture provisions for fiduciaries set forth in [chapter 61](/usc/38/chptIV-ch61.md) of this title.
- (b) **Notice.—**
  - (1) If the [Secretary](/usc/38/101.md?p=1) determines that the [Secretary](/usc/38/101.md?p=1) has made an overpayment to an individual, the [Secretary](/usc/38/101.md?p=1) shall provide notice to the individual of the overpayment.
  - (2) Notice under [paragraph (1)](#b-1) shall include a detailed explanation of the right of the individual—
    - (A) to dispute the overpayment, including a detailed explanation of the process by which to dispute the overpayment; or
    - (B) to request a waiver of indebtedness.
- (c) **Delay on Collection.—**
  - (1) Subject to [paragraph (2)](#c-2), the [Secretary](/usc/38/101.md?p=1) may not take any action under [section 3711 of title 31](/usc/31/3711.md) regarding an overpayment described in a notice under [subsection (b)](#b) of this section until the date that is 90 days after the date the [Secretary](/usc/38/101.md?p=1) issues such notice.
  - (2) The [Secretary](/usc/38/101.md?p=1) may take action under [section 3711 of title 31](/usc/31/3711.md) regarding an overpayment described in a notice under [subsection (b)](#b) of this section before the date that is 90 days after the date the [Secretary](/usc/38/101.md?p=1) issues such notice if the [Secretary](/usc/38/101.md?p=1) determines that delaying such action is—
    - (A) likely to make repayment of such overpayment more difficult for an individual;
    - (B) likely to cause an unpaid debt to be referred to the Treasury Offset Program; or
    - (C) not in the best interest of the individual.

## Source credit

(Added Pub. L. 117–328, div. U, title II, § 252(a)(1), Dec. 29, 2022, 136 Stat. 5462.)

## Notes

### Statutory Notes and Related Subsidiaries

### Regulations

Pub. L. 117–328, div. U, title II, § 252(a)(3), Dec. 29, 2022, 136 Stat. 5463, provided that: “The Secretary of Veterans Affairs shall prescribe regulations to establish standards under section 5302B(a)(2) of such title, as added by subsection (a), not later than 180 days after the date of the enactment of this Act [Dec. 29, 2022].”