713.19 When a Household Member Leaves During Collection Action (FSM)

SR 95-47 Dated 07/95

Previous Policy

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When an adult member leaves a household that received an overissuance, they remain liable for repayment. OSI may pursue collection action against any new participating household they join, in addition to the first one.

When Division of Family Assistance (DFA) error has caused a household to be underissued benefits, DFA must restore the lost benefits. However, if the household contains a member who was an adult member of any household which was overissued benefits, then the restored benefits must be offset by the amount of any remaining claim against the overissuance. Only the amount of the claim—and no more—may be collected.