Claims Establishment

7 CFR § 273.18(e)


Claims are established using ImpaCT.  Repayment actions on a claim are not started until the claim is marked as “approved” in ImpaCT.


Claim collections for active cases are managed by:

  • Workers - for AE and IHE claims.
  • The Office of Quality Assurance Client Fraud Investigations Division -for IPV claims, and some IHE claims.


The claim is sent to the Department of Administrative Services Collection Services (DAS) when the EDG becomes inactive, and the claim is delinquent.

Claim Notification 

7 CFR § 273.18(e)(3)-(4)


Workers notify the EDG of AE and IHE claim and collection actions. The Office of Quality Assurance Client Fraud Investigations Division notifies the EDG of IPV claim and collection actions.  


A W-0058N, Notice of Overpayment and Recoupment, is sent providing an adverse action period when the claim was not established at a fair hearing.  


Send the EDG a W-0058N providing the following information:

  • The amount of the claim.
  • A statement that the adults in the EDG when the overpayment occurred are liable to pay the claim.
  • The type of claim (AE, IHE, IPV).
  • Reason for the claim.
  • Time period for the overpayment occurred.
  • How the claim was calculated, including the amounts received and the correct amounts.
  • Phone number to call if the EDG requires more information about the claim.
  • The EDG may review and copy records related to the claim.
  • The household has 90 days to request a fair hearing, only when the claim wasn’t established at a fair hearing.
  • The due date (30 days from the notice date) the EDG must repay or make arrangements to repay the claim, unless the EDG agrees to benefit reduction.
  • The amount of the benefit reduction and effective date, if benefit reduction is used.
  • The claim may be sent to other collection agencies if not paid. 
  • The claim may be sent to the Federal government for TOP collection action if not paid.
  • The EDG can make a written agreement to repay the claim prior to being referred for Federal collection action.
  • Additional processing charges may be incurred if the claim becomes delinquent.
  • DSS may reduce the claim if they determine the EDG is not able to repay the claim.


Repayment tracking begins from the date of the initial notification.  

Individuals Liable for Paying a Claim 

7 CFR § 273.18(a)(4)(i)-(ii)


The following individuals are liable for paying a claim:

  • Each adult member of the EDG receiving SNAP benefits when the overpayment occurred.
  • Individuals connected to the EDG who actually trafficked or otherwise caused an overpayment or trafficking such as, but not limited to an: 
  • Non-citizen sponsor if the sponsor caused the overpayment or trafficking.

EDG Status Changes

CT Process

EDG Becomes Inactive

DSS runs a monthly Overpayment transfer program to identify inactive EDGs with outstanding approved claims, and to search the ImpaCT database to determine if the liable payer is active under a different EDG number.  DSS will transfer the claim to the active EDG if one is identified.  After 30 days of the EDG being inactive, DSS sends DAS a file with all claims over $100 if the inactive EDG’s claim is not transferred to an active EDG.   


DAS sends the EDG a demand letter to either repay the claim or enter into a repayment agreement.


Note:  Overpayments with claim balances less than $100 for AE and IHE, and less than $25 for IPV, are placed in suspended status and not sent to DAS.  ImpaCT initiates recoupment of the remaining overpayment balance if the liable payer becomes active on the program within 36 months.


Pending SNAP Claims of $25 or less cannot be authorized.  These claims are auto removed in batch and are not pursued.


EDG Reactivates Case

DAS ends billing action and benefit reduction begins the month following the month the EDG reactivates their case if a claim balance remains.  

EDG Files for Bankruptcy

7 CFR 273.18(j)


When DSS is notified the EDG has filed for bankruptcy, request the EDG provide their bankruptcy filing documents.  Staple all provided documents along with the original envelope and immediately forward to the Office of Quality Assurance.  


All collection activity (sending notices, benefit reduction) must stop pending the court’s final bankruptcy action. 

Compromised Claims

7 CFR 273.18(e)(7) 


Upon request by the EDG, DSS may compromise (write off) AE claims only it appears the claim will not be paid in 3 years.  DSS reduces the claim to the amount the EDG can pay within 3 years.  The EDG is notified of the compromised amount. 


Payments are still accepted and underpayments are still offset against the remaining balance due on an overpayment, even if that claim was compromised. 


Any portion of a compromised claim will be reinstated if the claim becomes delinquent.  Collection of a compromised claim that becomes delinquent may be referred to TOP  if the EDG is no longer active.

Ending/Writing Off Claims

7 CFR 273.18(e)(8)(i)-(ii)


DSS can end a claim and write it off for any of the following reasons:

  • All adult EDG members are deceased.
  • DSS or DAS determines it is not cost effective to pursue the claim.
  • The claim has a balance of $25 or less, and a payment hasn’t been received in the last 90 days or more.
  • A fair hearing finds no overpayment exists.
  • The EDG cannot be located.
  • There has not been a payment on the claim for 3 years or more, unless DAS plans to pursue the collection through TOP. 
  • DSS finds the claim is invalid.  Claims found invalid are discharged and shown as a balance adjustment.