7 CFR § 273.18(e)(4)
Workers or Client Fraud Investigations may enter into repayment agreements with active EDGs when the claim is started. The EDG and the worker/Client Fraud Investigations determine which repayment method to use. The repayment agreement must insure the monthly payment amount is at least equal to the amount that would be collected by benefit reduction.
Note: Benefit reduction begins if an active EDG doesn’t sign a repayment agreement within 30 days.
Repayment agreements for claims must contain:
- Due dates for payments.
- Time frames if installment payments are set up.
- Language stating involuntary collection actions will begin if payment isn’t received by the due date and the claim becomes delinquent.
Repayment begins when the worker or Client Fraud Investigations codes ImpaCT with the repayment method and approves the claim.
Repayment agreements are monitored for payments. ImpaCT creates reports identifying claims that become delinquent.
7 CFR 273.18(f) and (g)(1)-(9)
Claims may be repaid as follows:
7 CFR 273.18(f)(2)(1) and (g)(1)(i)-(v)
Benefit reduction from the EDG’s SNAP benefits automatically begins if the participating EDG does not:
- respond to the demand letter or return a signed repayment agreement within 30 days of the notice of overpayment,
- make agreed upon payments, or
- make full repayment.
The following amounts are deducted from the EDG’s benefits:
- AE and IHE overpayments - The greater of $10 per month or 10% of the EDG’s monthly benefit. The EDG may request a larger amount.
- IPV overpayments - The greater of $20 or 20% of the EDG’s monthly entitlement. The EDG may request a larger amount.
Exception: Benefits are not reduced from the initial month benefits.
7 CFR 273.18(f) and (g)(4)
The EDG may pay the overpayment in full or in installment payments using:
- check, or
- money order.
7 CFR 273.18(g)(5)
Installment payments are made on the claim as part of the EDG’s repayment agreement. The claim is delinquent if payments are not made as agreed. For active EDGs, the claim will be collected through benefit reduction. Inactive EDGs are referred to DAS.
7 CFR 273.18(g)(2)(i)-(ii)(C)
Reduce the claim amount by any expunged benefits.
Inactive EBT Benefits
7 CFR 273.18(g)(2)(i)-(ii)(B)
Notify the EDG that inactive benefits in their account will be applied to the claim. Inactive benefits are applied to the claim unless the EDG provides notification not to use the benefits, within 10 days from the date of the notice.
7 CFR 273.18(g)(7)
A claim may be repaid by the individual performing public service, only if court ordered.
7 CFR 273.18(e)(8)(ii)(E) and (f)(6) and (n)(1)-(3)
Delinquent claims are transferred to TOP by DAS after the claim is delinquent for 120 days. TOP referrals allow reduction of any Federal payment due to the individual from the US Treasury.
Examples: Income tax refunds, Federal salaries, Social Security benefits, and any other federal payments.
DAS sends the EDG a 60-day notice of the pending TOP referral.
7 CFR 273.18(f)(1) and (g)(3) and (m)(3)(ii)
Underpaid benefits owed to a household must be used to offset the amount of any outstanding (approved) overpayment claim, including suspended claims.
Exception: Underpaid benefits for an initial month are not used to offset an overpayment claim.
Amounts remaining after offsetting the claim are issued to the EDG.
Unspecified Joint Collection
7 CFR 273.18(g)(9)
An unspecified joint collection is when:
- a payment is received,
- there are claims in more than one program, and
- the individual does not specify which claim is being paid.
If the individual doesn’t state which program the payment is for, assign a prorated share to each program’s claim.
For example: An EDG has a claim in both the TANF and SNAP programs. The EDG sends in a $50 check with no explanation. Apply $25 to each claim.
Voluntary Payment from the EBT Account
7 CFR 273.18(f)(2) and (g)(1)(v) and (2)(iv)(A)-(E)
The EDG may request a voluntary payment from their SNAP EBT account. The EDG must provide a written agreement that includes the following information:
- The payment is voluntary.
- The amount of the payment.
- How often the payment(s) will be paid.
- The length of the agreement.
- The EDG may end the agreement at any time.
7 CFR § 273.18(e)(5)(i)-(v)
DSS creates a monthly file identifying delinquent claims and sends the file to DAS. DAS handles delinquent claims.
Fair Hearings and Claims
7 CFR § 273.18(e)(6)(i)-(iii)
Suspend collection of an overpayment pending the hearing decision if the hearing request was made within 90 days of the initial notification.
Notify the EDG and end the claim if the hearing officer finds the claim is not valid.
Notify the EDG of the claim if the hearing officer finds the claim is correct.