FAA6.E Overpayments : 06 Methods of Overpayment Collection - Overview : B Methods of NA Overpayment Collection - Overview : .11 Methods of NA Overpayment Collection - Suspending NA Overpayment Collection
.11 Methods of NA Overpayment Collection - Suspending NA Overpayment Collection
The Office of Accounts Receivable and Collections (OARC) may suspend non-IPV error NA overpayments when one of the following is true:
 
Collection was not initiated because the amount of the overpayment is less than the referral limit and could not be recovered by reducing the allotment.
Collection action was initiated, at least one demand letter was sent AND at least one of the following is true:
The household cannot be located.
The cost of further collection is likely to exceed the amount that can be collected.
 
OARC may suspend Intentional Program Violation (IPV) NA overpayments ONLY when one of the following situations exist:
 
There is documentation that the household cannot be located.
At least ONE demand letter has been sent in an amount under the referral limit for overpayments.
At least TWO demand letters have been sent for overpayments between $100 and $400.
At least THREE demand letters have been sent for overpayments exceeding $400 and the cost of collections is likely to exceed the amount that can be recovered.
 
NOTE Restored benefits are used to offset suspended overpayments.