Overpayments Due to Administrative and/or Client Error 415-55-10-10

(Revised 10/00 ML #2629)

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1. To recover an overpayment, immediately notify the household by letter of the cause and amount of the overpayment; clearly request a full repayment or a response to the letter to schedule an interview to discuss repayment options (include the office telephone number and address); advise the clients of their right to be represented at the interview. This may be all that is needed to resolve the overpayment. If a response is not received in a reasonable period of time, one or two follow-up letters may be necessary. If so, include all of the above information in each, plus a response deadline date. Copies of all letters are to be sent to the State Administrator of LIHEAP.
2. Unless a full and immediate repayment is received, an interview with the household may be necessary to complete a repayment agreement. An agency witness during the interview may be desirable. The client may be represented by an attorney, friend, relative or other individual of his choice. The repayment options, in order of preference, are:

1. Full and immediate repayment.
2. Full but delayed repayment. Six months from the date the error was discovered is a reasonable deadline. *See Time Limits.
3. Installment Payments. Administrative cost effectiveness and efficiency decreases in direct proportion to the number of payments required. *See Time Limits.
4. Any combination of the above options. *See Time Limits.

* Time Limits

Refunds of overpayments, regardless of the repayment option selected, should be received by the State Office before the end of the federal fiscal year that follows the year in which the payment was made. Collections made after that date cannot be retained by the state. Hardship exceptions should be requested as described in 415-55-15.

3. A copy of the repayment agreement will be forwarded to the State Administrator of LIHEAP.
4. Collection

Whenever the repayment is not received through the above procedures, the County States Attorney may be willing to represent the county in a civil action in county court or small claims court. If so, the request should be transmitted in writing with a copy to the State Administrator of LIHEAP.

 

Other collection actions, such as referral to a private collection agency, may be appropriate but the cost and other effects must be carefully considered.