A. After an application for waiver of overpayment is received, the local office representative shall determine the cause of the overpayment and forward the application to the Department's recoveries section. The recoveries section shall make the initial recommendation to recover or waive the overpayment.
B. If the recommendation is to recover the overpayment and deny waiver, written notice shall be given to the claimant. The notice shall include a statement:
(1) Of the reasons for the proposed denial in accordance with Regulation .05 of this chapter, including a determination of fault and the claimant's ability to pay. If the waiver request is denied on the ground that the overpaid claimant was at fault, however, no further finding will be made.
(2) Advising the claimant of the right to provide additional information within 15 days to the Secretary for the Secretary's consideration.
C. Applications recommended for approval shall be forwarded to the Secretary.
D. The Secretary may grant a waiver of overpayment only within 1 year of the initial determination establishing the overpayment. The 1-year period shall be stayed pending the outcome of any appeal.