I would appreciate any help you can give on the following case:
Tenant's husband died in April she informed HB office and completed new form indicating payment to be made to landlord.
By June no payments had been received by us so enquired and was told that HB would be paid back to April. When no payments came to us enquired again at LA only to be told that three payments had been sent to tenant. Apparently tenant rang each time she received a cheque and was told it was her money. Now received copy of notifications which are dated 13th May over a month before our enquiry made.
Tenant has large arrears and LA are just saying sorry but she will have to make an arrangement with us to repay the amount she owes. As she was convinced that the money was hers she has spent it.
My opinion is that LA should pay us the money and create an overpayment that she can repay to them. Any ideas?

Margaret, this scenario has been discussed a couple of times before. Here's the links

http://www.rightsnet.org.uk/dc/dcboard.php?az=show_topic&forum=102&topic_id=234&mesg_id=234&page=2

and this thread on the HBinfo.org site

http://hbinfo.org/forum/viewtopic.php?t=1646

it looks like you have a case for getting the money from the LA. And, whats more, the consensus seems to be that any payment made to the HA to correct the LA's mistake cannot result in the first payment to the tenant being treated as an overpayment.

jim