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Page | 317 19231 INITIATING COLLECTION ON CLAIMS

The Office of Recoveries and Fraud Investigations (ORFI) will initiate collection action by providing the household a written demand letter which informs the household of the following:

A. Amount owed. B. Intent to collect from all adults in the household when the overpayment occurred C. Classification of overpayment D. Cause of overpayment E. Period of time over which the overpayment occurred F. A copy of the claim calculation (the reverse side of the DSS-EA-894, Overpayment Report) G. Name and phone number of the ORFI recovery coordinator assigned to the individual’s debts H. The following statements: 1. The overpayment is equal to the difference between the allotment the household received and the allotment the household should have received. 2. If the overpayment is not paid, it will be sent to other collection agencies, which will use various collection methods to collect. 3. Records related to the overpayment may be inspected and copied at the local DSS office. 4. Unless the amount of the overpayment was established at a hearing, a fair hearing can be requested within 90 days of the date of the demand letter. 5. If not paid, the overpayment will be referred to the Federal government for federal collection action. 6. A written agreement to repay the amount may be made to ORFI prior to referral for federal collection action. ORFI has the authority to accept or decline the agreement. 7. ORFI may reduce any part of the overpayment if the ORFI determines the household is not able to repay. 8. If the household does not respond to the demand letter or make full repayment within 30 days, and the household is active the household’s allotment will be reduced by: a) The greater of 10% or $10 if the claim is classified as an inadvertent household error. b) The greater of 20% of the household’s entitlement or $20 if the claim is classified as an IPV. 9. If not an active SNAP participant, the household has 30 days from the date of the letter to pay the claim in full or to arrange an acceptable repayment agreement with ORFI. 10. That free legal representation is available, if any exists in the area.

19232 STARTING THE OVERPAYMENT REPORT PROCESS

Whenever a household has been issued incorrect benefits, DSS must determine if a household is owed benefits or if the amount must be repaid.  If the household is owed benefits, Corrective Action Payments or Restored Benefits procedures, must be followed.  If the household must repay benefits, then we must determine if an overpayment report must be completed.

Inadvertent household error, (IHE) overpayment amounts that total less than $100 are waived, and the overpayment report is not completed. No further action is taken unless one of the following conditions apply: 1. The household is actively receiving benefits; or 2. The overpayment was discovered through the Quality Control review process.