A welfare recipient can appeal a decision by MSDSI that he or she owes an overpayment. However, MSDSI’s decision about the amount of a person’s overpayment is not open to appeal (EAA, s 27(2) and EAPWDA, s 18(2)), although a person can apply for a reconsideration of the amount of an overpayment (for more on reconsiderations, see [[Welfare_and_Health_Supplements_(21:IX) | section IX ]] below).

In ''Newfoundland (Social Services Appeal Board) v Butler'', [1996] NJ No 91, the court held that the Ministry could not recover the monies paid out to Ms. Butler by mistake. Ms. Butler successfully used the defence of change of circumstance. The court held that because Ms. Butler had made expenditures that she would not otherwise have made without the overpayment, it would be unjust to force her to pay the Ministry back. Therefore, it may be that in similar situations, recipients of overpayments will not be obligated to repay social assistance for monies paid under a mistake of fact. Please note that in this case, Ms. Butler reported the income to the Ministry and the Ministry erred in not deducting it.  == D.Welfare Fraud == Some overpayments result not out of an honest error, but rather out of a recipient’s knowing failure to provide MSDSI with accurate information about his or her eligibility.  Section 31 of the EAA and s 22 of the EAPWDA set out when a person is considered to have committed a statutory offence of welfare fraud. Welfare recipients can also be charged with fraud under the Criminal Code.  Where the MSDSI receives information regarding potential fraud or non-disclosure, it will investigate and may take one or more of the following steps: *refer to the Crown for charge approval under the ''Criminal Code'', the EAA or the EAPWDA; *take civil action to recover the overpayment; *enter into a repayment agreement with the recipient;*deduct the overpayment(s) from future benefits; *or declare the person ineligible for assistance for three benefit months.  '''NOTE: ''' If a client has been charged criminally with welfare fraud, refer him or her to the Legal Services Society to apply for a legal aid criminal lawyer.