Discontinuation of Collection Efforts 415-55-15

(Revised 10/00 ML #2629)

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The county social service office may recommend, in writing, that the State Administrator of LIHEAP approve temporary suspension or permanent discontinuation of collection efforts and/or payments. The justification for this action may include, but is not limited to:

1. The overpayment, or realistic installment payments, are small and collection costs are too great to be cost effective.
2. Full or partial repayment would be an extreme or undue hardship for the household at this time.
3. The client did not respond, rejected an interview, refused to execute a repayment agreement, or defaulted on the agreement, and further collection efforts cannot be justified.

Whenever payments or collection efforts are suspended or discontinued, the household must be notified in writing. The letter to the client must include any special conditions, reasons, time limits, or if the household is expected to resume payment whenever the household is able to do so.

 

Circumstances of the case may warrant a periodic review of the decision to discontinue collection efforts, especially if conditions may be expected to change which would make collection at a later date feasible. If the county social service office becomes aware that circumstances have changed favorably, the household should be notified in writing that collection efforts will resume.