FAA6.E Overpayments : 07 Methods of Overpayment Collection - Overview : B Methods of NA Overpayment Collection - Overview : .03 Methods of NA Overpayment Collection - Recoupment of NA Overpayment
.03 Methods of NA Overpayment Collection - Recoupment of NA Overpayment
FAA may collect payments on all overpayments from the households currently receiving benefits by reducing the NA benefit.
 
Before reduction in NA, the Office of Accounts Receivable and Collections (OARC) informs the household of the following:
 
The appropriate formula used to determine the amount of benefits to be recovered each month.
The effect the formula has on the NA allotment.
The availability of other methods of NA repayment.
 
When the participant chooses to repay through recoupment, the amount of reduction is as follows:
 
For agency and nonfraud household errors, the greater of 10% of the allotment or $10.
For Intentional Program Violation (IPV) errors, the greater of 20% of the entitlement or $20.
 
NOTE The entitlement is the amount the household would be eligible for were the participant not disqualified.
 
When the household is subject to recoupment, OARC completes the following:
 
Determines the amount to be recouped based on the type of overpayment (IPV or unintentional error)
Reduces the allotment until the overpayment is paid.
 
WARNING
The local office must not take any of the following actions:
Adjust benefits in an effort to recoup benefits.
Apply recoupment to initial month's benefits.
Apply recoupment to restored benefits.
 
NOTE A computer tape from OARC is matched to the AZTECS Benefits Payment file before printing monthly or daily benefits.