Change Date July 31, 2015 a. When to Consider the guidance in this topic when Consider direct payment of fees is at issue as provided in Part I, 3.C.1.g, and Failure to VA has awarded and released past due benefits to the claimant (see Part I, Withhold Past 3.C.2.a, stage 9), but Due Benefits no portion of the benefit was actually withheld for direct claimant’s payment of attorney fees b. Failure to failure to withhold a portion of the past due benefits for VA’s claimant’s Withhold possible direct payment of fees does not relieve VA of its obligation to pay an Benefits attorney or agent the fees to which he or she is otherwise entitled. , 14 See Vet. App. 154 (2000), which overruled the second holding of . When the evidence makes out the showing specified in M21-1, Part I, c. Initial Action When 3.C.7.a, immediately contact the claimant and attempt to recover the amount Failure to requested as direct payment of fees (20 percent or less). Withhold Benefits Is Compute the direct-pay fee amount (20 percent or less) based upon the Discovered amount of past due benefits through the date of the decision. If the claimant returns the funds, follow the normal procedures for d. Action to Take if making a direct-pay fee eligibility determination per M21-1, Part I, 3.C.4, Claimant and Returns the releasing the funds to the attorney or agent and appeals per M21-1, Part I, Funds 3.C.5.
Change Date July 31, 2015 a. When to Consider Failure to Withhold Past Due Benefits Consider the guidance in this topic when direct payment of fees is at issue as provided in Part I, 3.C.1.g, and VA has awarded and released past due benefits to the claimant (see Part I, 3.C.2.a, stage 9), but no portion of the claimant’s benefit was actually withheld for direct payment of attorney fees b. Failure to Withhold Benefits VA’s failure to withhold a portion of the claimant’s past due benefits for possible direct payment of fees does not relieve VA of its obligation to pay an attorney or agent the fees to which he or she is otherwise entitled. See , 14 Vet. App. 154 (2000), which overruled the second holding of . c. Initial Action When Failure to Withhold Benefits Is Discovered When the evidence makes out the showing specified in M21-1, Part I, 3.C.7.a, immediately contact the claimant and attempt to recover the amount requested as direct payment of fees (20 percent or less). Compute the direct-pay fee amount (20 percent or less) based upon the amount of past due benefits through the date of the decision. d. Action to Take if Claimant Returns the Funds If the claimant returns the funds, follow the normal procedures for making a direct-pay fee eligibility determination per M21-1, Part I, 3.C.4, and releasing the funds to the attorney or agent and appeals per M21-1, Part I, 3.C.5.