Criteria for Terminating Collection Action [Rev. eff. 1/1/16]

The provisions within this section apply to Agency Error (AE) claims, Inadvertent Household Error (IHE) claims, and intentional Program violation (IPV) claims. A. A terminated claim is a claim in which all collection activity has ceased. A terminated claim is no longer considered a receivable subject for continued state and federal agency collection and reporting requirements unless otherwise stated. Voluntary payments from a household on a terminated claim do not reactivate the claim. A terminated claim cannot be reactivated to pursue collection. B. Collection action on a claim shall be terminated only in the following situations: 1. A claim may be determined uncollectible after the collection action has been suspended for three (3) years. Prior to terminating such a claim, the local office may submit the claim for state or federal offset or pursue other collection actions. A terminated claim may not be reactivated to offset restoration of lost benefits. 2. A claim may be terminated if it has been delinquent for a period of three (3) years. Prior to terminating such claim, the local office may submit the claim for state or federal offset or pursue other collection actions. 3. A claim shall be terminated if found to be invalid by an administrative fair hearing decision or a court determination. 4. A claim shall be terminated if all adult members are deceased and the agency is not pursuing collection from the estate. 5. A claim that is twenty-five dollars ($25) or less and delinquent for ninety (90) calendar days may be terminated.