Suspending collection of inadvertent household or administrative error claims.

(i) Social services districts may suspend collection action on an inadvertent household or administrative error claim if no collection action was initiated because of one of the following conditions:

(a) the total amount of the claim is less than $35, and the claim cannot be recovered through benefit level reduction;

(b) the social services district has documentation which shows that the household cannot be located; or

(c) the case is being referred for possible prosecution or for administrative disqualification and the social services district determines that collection action would prejudice the case.

(ii) The collection of an inadvertent household error claim against a non-participating household or the collection of any administrative error claim may be suspended if collection action has already been initiated and at least one demand letter has been sent and:

(a) the household cannot be located; or

(b) the cost of further collection action is likely to exceed the amount that can be recovered.