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Title 7: SNAP Page 15 Iowa Department of Health and Human Services Employees’ Manual Chapter H: Adjustments Collection Action Revised October 11, 2024 If a Household Fails to Respond to a Notice of SNAP… If a Household Fails to Respond to a Notice of SNAP Overpayment Legal reference: 7 CFR 273.18(d)(4), 441 IAC 65.21(4) If a household that is currently participating in the program does not respond to the Notice of SNAP Overpayment within 20 days of the date the notice is mailed, the household’s SNAP is reduced for the next month. EXCEPTION: Benefits may continue with no reduction when the household files an appeal of an inadvertent household or agency error claim. (See 1-E, Continuation of Assistance Pending Final Appeal Decision.) If the Department is upheld, a second Notice of SNAP Overpayment is sent to the household. If the household is currently participating in the program and does not respond within 20 days of this notice, the allotment is reduced the next month. Revise the claim to alert DIAL when an appeal has been filed and when a final decision is received, in order to stop recovery or to start it again. (See 6-Appendix for instructions.) DIAL may also pursue other collection actions to obtain restitution of a claim against any household that fails to respond to a Notice of SNAP Overpayment for repayment of any inadvertent household error, administrative error, or intentional program violation claim. Other collection actions may include, but are not limited to, withholding of income tax refunds and civil court action. If a Household Requests a Settlement, Adjustment, or Compromise Legal reference: 441 IAC 65 Any household with a claim has the right to ask the Department to settle for an amount less than the total amount of the overissuance. The household must send a letter to the Department asking for such a settlement. The request for settlement is a request for an exception to policy. See criteria at 1-B, Exceptions to Policy. The letter shall include: ▪ The name, address, and case number or state identification number of the person requesting the settlement. ▪ The specific reason why the household thinks the amount they owe should be reduced. The Department will review the household’s request and make a decision to reduce or eliminate the claim or deny the request for a settlement.