Around 240K Canadians Still Need To Repay Their CERB & CRB — Here's What You Need To Know

As many as 240,000 Canadians have yet to repay CERB and CRB payments they were not entitled to receive, according to documents tabled in the House of Commons last week.

Earlier this year, as many as 260,000 Canadians were contacted about paying back COVID-19 emergency benefits that they should not have received.

However, CBC News reports that as of September, only around 19,000 of those people – approximately 7% – have actually made repayments to the Canada Revenue Agency.

This means around $16 million has been returned, but $1.2 billion must still be repaid.

Among the benefits that must be paid back are the $2,000–per-month Canada Emergency Response benefit, known as the CERB, and the Canada Recovery benefit, known as the CRB.

When the CERB was initially introduced in 2020, claimants were required to attest to their own eligibility.

While no penalties were put into place for those who mistakenly applied for benefits they were not eligible for, the feds warned that all incorrectly-claimed payments would have to be returned.

Fortunately for those already struggling with the cost of living right now, there is currently no deadline for Canadians to repay the money they might owe.

However, there are consequences for those who refuse to cooperate with the CRA or make repayments.

The CRA warns online that it can take "serious financial or legal" action in some circumstances, which could include taking your other benefits, placing a lien on your property or even seizing and selling your home.

"Ignoring your debt does not make it go away," the agency says.

It adds, "If you can not pay in full now, no interest or penalty will be applied on your COVID-19 benefits overpayment debt. We can work with you to establish a payment arrangement."

Those who want to repay CERB or CRB can do so online, or by phoning a CRA agent to discuss settling outstanding debt.

In June, officials found an "inequity" whereby many students had applied for the CERB, rather than the Canada Emergency Student Benefit (CESB).

The difference between the CERB and CESB amounts can now be used to reduce the repayments some students owe – a change expected to lower the repayment debt of more than 98,000 students.

This article's cover image was used for illustrative purposes only.