FAA6.E Overpayments : 07 Methods of Overpayment Collection - Overview : B Methods of NA Overpayment Collection - Overview : .06 Methods of NA Overpayment Collection - Recoupment Collection Notices
.06 Methods of NA Overpayment Collection - Recoupment Collection Notices
The Office of Accounts Receivable and Collections (OARC) sends a demand letter for the first payment for unintentional household error overpayments. The letter informs the household of the following:
 
The length of time that the household has to decide which method of NA repayment they choose and to inform FAA of the decision.
The fact that the allotment is reduced when the household fails to agree to make restitution within 10 days.
 
A demand letter to the PI is considered to be notification to all participants in the case. All household participants are considered to have been notified even when they are no longer a part of the household at the time the demand letter is sent.
 
Households that fail to respond to the first payment demand letter are subject to recoupment when currently receiving benefits.
 
Involuntary recoupment is imposed for intentional household errors and Intentional Program Violation (IPV) when the active household does not respond to the demand letter within ten days.
 
When the NA case is closed and the participant does not respond to the demand letter within 10 days from the date of mailing, OARC sends monthly statements until one of the following occurs:
 
The participant pays the overpayment.
The criteria for suspending the overpayment is met.
 
NOTE Should the household reapply and be found eligible, recoupment will be imposed. Recoupments are not applied to the initial month of a new application.
 
When the household fails to make a payment as agreed in the repayment schedule, a notice indicating the following is sent to the PI advising that no payment or an insufficient payment was received:
 
The notice advises the household that they may negotiate the payment schedule and that the benefit will be reduced without NOAA unless the household does one of the following:
Contacts OARC.
Makes the overdue payments.
When the household responds timely to the notice, OARC takes one of the following actions, as appropriate:
Permit the household to make the payments based on the previous schedule when the household makes the current and all overdue payments.
Renegotiate the repayment schedule when the household requests negotiation and OARC agrees.
When the household requests negotiation of the amount of the repayment schedule, but OARC believes the household circumstances have not changed enough to warrant negotiation, OARC may complete the following:
Continue negotiation until an agreement is reached.
Initiate involuntary recoupment for repayment of an unintentional household error or IPV claim, when a settlement cannot be reached for a currently participating household.
 
OARC handles all negotiations on repayment. The local office MUST NOT DENY, STOP, OR REDUCE the benefits for failure to do any of the following:
 
Repay an administrative error overpayment.
Agree to a repayment schedule.
Make the agreed upon payments.