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Title 7: SNAP Page 14 Iowa Department of Health and Human Services Employees’ Manual Chapter H: Adjustments Claims Revised October 11, 2024 Establishing the Debtor on a Claim Complete the Fraud Referral screen whenever: ▪ The total SNAP overpayment is greater than $1,000. ▪ DIAL requests the information to pursue recovery action. ▪ You want legal action pursued. ▪ Recovery will be attempted from the resources of an alien sponsor. Collection Action Legal reference: 7 CFR 273.18(d)(1), (2) The Department of Inspections, Appeals, and Licensing (DIAL) initiates collection action against the household on all inadvertent household or administrative error claims. DIAL also initiates collection action against the household when a household member is found to have committed an intentional program violation. NOTE: Collection action is postponed when an overissuance is referred to the Economic Fraud Control Unit for investigation for possible court action. See 7-J, Court Referrals. When a court finds a household member guilty of misrepresentation or fraud, DIAL will make a request to the court regarding restitution. Collection action is initiated for an unpaid or partially paid claim, even if collection action was previously initiated against the household as an inadvertent household error claim. The Overpayment Recovery System initiates recovery by sending a Notice of SNAP Overpayment, form 470-4668. See 6-G, Issuing Notice for Repayment for more information on these procedures. Apply any lost benefits against a claim (including a claim in suspension) before issuing lost benefits to the household. The following sections explain: ▪ Procedures when a household fails to respond to a Notice of SNAP Overpayment ▪ Procedures when a household requests a settlement, adjustment, or compromise ▪ Methods of collecting payments ▪ Suspending or ending collections ▪ Effect of changes in household composition ▪ Overpaid claims ▪ Interstate claims collection