FAA6.E Overpayments : 07 Methods of Overpayment Collection - Overview : B Methods of NA Overpayment Collection - Overview : .10 Methods of NA Overpayment Collection - Compromising NA Overpayments
.10 Methods of NA Overpayment Collection - Compromising NA Overpayments
When the full or remaining amount of a household error NA overpayment cannot be collected in three years, the Office of Accounts Receivable and Collections (OARC) may decide to compromise the overpayment by reducing it to an amount that can be collected within three years. Guidelines for compromising overpayments include the following:
 
When the household's financial situation is stable but the income is very low and the household is unable to repay the total overpayment in three years, the amount may be reduced.
When the household has an unstable financial situation, the overpayment cannot be compromised based upon the lower income.
The amount compromised is final unless the household becomes delinquent in their payments. When this occurs, OARC retains the right to reinstate the original amount of the overpayment.