713.21 Methods of Collection SR 08-24, 10/08 (FSM-A)

Several methods are used to collect repayments of overissuances. See Section 621.03, Rate and Method of Recoupment. These methods are:

• lump sum payment;

• installments;

• allotment reduction; or

• IRS Tax Refund Offset. See Section 713.23, When the Household Fails to Make Proper Payment.

A household must repay an overissuance through allotment reduction if the claim has not been satisfied through a lump sum payment or establishment of an installment plan. The amount of the monthly reduction is 20% of the allotment or $10, whichever is greater.

OSI need not send a notice of adverse action when it begins allotment reduction. The Bureau of Data Management (BDM) will send the household a notice informing it of the formula for determining the amount to be recovered each month and the availability of other methods of payment.

Food stamp benefits may be used for repayment instead of cash. See PART 621, RECOUPMENT/REPAYMENT OF ASSISTANCE.

The allotment of one- and two-member households cannot be reduced below the 10% or $14 monthly minimum. See PART 615, BENEFITS: FREQUENCY AND ISSUANCE.