Debt with ACC

Debt is a word no one likes to hear. ACC also uses this word to describe overpayments.

Having a debt with ACC is stressful and can be caused in several ways.

Sometimes ACC calculates earnings information incorrectly. Sometimes they re-calculate earnings, and the picture can change as new information comes to hand.

Human error can play a part, and at times systems can also be the problem.

What can you do to reduce the likelihood of finding yourself on the receiving end of a distressing debt letter?

These are some tips from the Way Finders navigation team on how to avoid getting an overpayment from ACC in the first instance:

• If you notice something doesn’t look right with your payments -always contact ACC. Don’t wait for them to reach out to you. If you show that you have been actively seeking assistance to understand your payments, this may assist you later when asking to have your debt re-considered.
• Communication is key! Share the information, ask the question. If you can’t wait hours on hold, send an email. Showing you as the client have provided the information in a timely way will potentially avoid the situation but will also bode well SHOULD an overpayment occur.
• If overpaid, don't spend the amount it was overpaid by.
• If your situation changes, such as returning to work or changes in income, declare it promptly to avoid over payment.
• Keep track of ACC related payment schedules to ensure payments are correct and match your understanding of what you should be receiving.
• Ensure all information provided to ACC is accurate to avoid miscalculation of weekly compensation entitlement. Ask questions if not sure.
• Declare your income in the week as you earn it, not when you remembered to look at the payslip a month later
• If you see more money coming in than usual, don't just assume it will be yours, but call ACC to query it.
• If you receive termination pay, ACC will likely need to deduct this from your weekly compensation entitlement.
• For self-employed people, if you agree to an amount while your tax earnings are lodged, be mindful that if your earnings drop that this can result in an overpayment. And further to that, to perhaps check with your accountant prior to agreeing to estimated payment for weekly compensation if your business earnings are down from the last financial year.

What to do if you receive notification from ACC that you might have an overpayment or debt with them:

1. Check the Cause – If you didn’t contribute to the overpayment, such as ACC failing to update your income details, you may not be responsible for the debt.

2. Contact ACC Immediately – Reach out to ACC as soon as you're aware of any overpayment to discuss the basis of ACC's decision. Don't bury your head in the sand. You do have options and can get assistance if you seek advice at an early stage.

3. Good Record Keeping – Review your financial details and keep a record of all communications with ACC in case there are errors or misunderstandings further down the track

4. Explore Good Faith Arguments – If you received the overpayment in good faith, and it significantly altered your financial position, there may be grounds to discuss whether any repayment is valid with ACC.

Contact one of the team at Way Finders and we can guide you on how to work through this process with ACC.

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