713.15 Initiating Claims (FSM)

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OSI begins collection action with a demand letter informing the household of all the following:

• the amount owed,

• the reason for the claim,

• the period of time the claim covers,

• any offsetting that was done to reduce the amount of the claim,

• how the household may pay the claim,

• the household’s right to a fair hearing, and

• the availability of free legal services.

• The household must notify DHHS of its choice of repayment method within 10 days of the date of receipt of the demand letter.

• The household’s allotment will be automatically reduced if either of the following apply:

- the household fails to make a timely choice of repayment method, or

- the household fails to make a timely request for a fair hearing and continuation of benefits.

• Such allotment reduction will begin with the first coupon issuance following the expiration of the household’s time limit for notifying DHHS of its choice of repayment method.

• If the household chooses allotment reduction, the reduction will begin with the first coupon issuance after the household chooses this method of repayment.

• The household’s allotment will be automatically reduced if either of the following apply:

- the household fails to make a timely choice of repayment method, or

- the household fails to make a timely request for a fair hearing and continuation of benefits.

• Such allotment reduction will begin with the first coupon issuance following the expiration of the household’s time limit for notifying DHHS of its choice of repayment method.