Change of Position for the Worse Law and Legal Definition

Change of position for the worse means “an individual would be left in a worse financial position after recovery of the overpayment than prior to the receipt of the overpayment because the individual reasonably relied on the amount of the overpayment to his or her detriment. For example, an individual has "changed position for the worse" if he or she made expenditures or assumed new liabilities that he or she would not have otherwise done, and he or she is unable to withdraw from the commitment without incurring significant financial loss.” [31 CFR 29.502; Title 31-Money And Finance: Treasury; Subtitle A-Office Of The Secretary Of The Treasury; Part 29-Federal Benefit Payments Under Certain District Of Columbia Retirement Programs; Subpart E-Debt Collection And Waivers Of Collection]