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VIRGINIA DEPARTMENT OF SOCIAL SERVICES RECIPIENT CLAIMS

10/25 VOLUME V, PART XVII, PAGE 5

1. Claim Thresholds (7 CFR 273.18(e)(2)(ii))

The BPS must establish a claim for any household-caused overpayment that totals more than $125 and for any agency-caused overpayment that exceeds $300. The BPS may initiate collection action for household-caused claims under the $125 threshold or when multiple overpayments for a household within the last six years total or exceed the threshold for the claim type.

2. Liable Persons (7 CFR 273.18(a)(4))

The following persons are responsible, or liable, for paying a claim: a. Each person who was, or should have been, an adult member of the household, age 18 or older, when the overpayment or trafficking occurred; and b. A person connected to the household, such as an authorized representative, who actually caused an overpayment or trafficking.

E. INITIATING COLLECTION ACTION (7 CFR 273.18 (e))

1. Demand Letters

The BPS must initiate collection action by mailing or otherwise delivering to the household the appropriate initial demand letter, Request for Repayment of Extra SNAP Benefits and a Repayment Agreement. The demand letter and repayment agreement must be sent immediately following the establishment of the claim, unless the household cannot be located or a court ordered repayment of the claim. Additionally, if a claim is established as an IHE and collection action is being postponed because the case is being referred for prosecution or an ADH, the BPS must initiate collection action by sending the demand letter and a repayment agreement, if the case is not accepted for prosecution or an ADH. The local department of social services must retain a copy of the initial demand letter to document the claim was properly established.

The household has 30 days from the date of the initial demand letter to tell the BPS how the household intends to repay the claim. The household must make its first payment within 30 days of the date of the letter. If the household pays the claim, follow the procedures in Part XVII.Q for submitting payments.

If a participating household does not respond to the initial demand letter, benefit reduction must be initiated. The household's benefit must be reduced not later than the first day of the second month following the date of the initial demand letter.

If a non-participating household does not respond to the initial demand letter, a Request for Extra SNAP Benefits-Follow-Up demand letter and Repayment Agreement should be sent at 30-day intervals until the household responds by paying, agrees to pay the claim, or until the criteria for terminating collection action have been met, as specified in Part XVII.K.

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