Why is CAF asking you for money?
A CAF overpayment occurs when you received more benefits than you were entitled to. The causes vary: late declaration of a change of circumstances (income increase, move, separation), a CAF calculation error during the annual review, or a situation that changed without you thinking to declare it. In all cases, CAF is entitled to claim back unduly paid amounts.
First step: check the calculation
Before paying or challenging, verify that the claimed amount is correct. Ask CAF for a detailed breakdown — they're obliged to provide one. Compare it with your own income declarations and bank statements. CAF calculation errors exist and aren't rare. If you find a discrepancy, that's the basis for your challenge.
How to challenge an overpayment you think is unjustified
You have 2 months from the notification to file an administrative appeal with your CAF. Precisely identify the calculation error, explain your reasoning, and attach supporting documents. Be methodical and factual. If your challenge is valid, CAF will correct the amount.
You accept the overpayment but can't pay it back
Two solutions: a goodwill waiver (asking CAF to cancel all or part of the debt citing your difficult financial situation) or an instalment plan (repaying in small monthly amounts over 12, 24 or 36 months). In both cases, attach bank statements and proof of outgoings.
What happens if you do nothing
If you ignore the repayment request, CAF can deduct the overpayment directly from your future benefit payments. In serious cases, a bailiff may be involved. Acting — even just to request an instalment plan — is always better than inaction.