Court Ordered Claim Repayment 430-05-80-45

(Revised 07/01/05 ML2972)

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A worker must recoup the portion of a claim not included in a court order as long as the order does not specifically void it. The worker must also ensure that payments received by the Clerk of Court are sent to the Finance Division of the Department of Human Services along with the case name and case number.

 

When an individual has been found guilty of fraud in court, the worker must:

  1. Disqualify the individual: For all disqualified individuals, including those not participating at the time of the disqualification order, the disqualification period begins with the first month following the date the individual receives written notification. Adequate notice is required.

Once a disqualification penalty has been imposed it continues uninterrupted until completed. The household remains responsible for repayment of any overissuance that may have resulted from this violation, regardless of eligibility for benefits.

  1. Change the error cause code for the claim to "FR" (SEOO, function 5) and set the participation code for the disqualified individual to "DF" if currently participating. Send Notice F818 – IPV – Overissuance to the household and set an alert for 10 days as the household has 10 days to return the signed Notice F818. After the 10 days has elapsed, change the percent from 10% to 20% (SEOO, function 5).  For IPV claims, the amount of SNAP benefit reduction is the greater of 20% of the benefit or $20 per month.
  2. Set a person/program alert on the PRAP screen (CAMM, function 19).

 

Examples:

  1. An open SNAP case has a $500 claim and is court ordered to repay $300 to the Clerk of Court. The court order does not state that the remaining amount of the claim is void. The worker must recoup the remaining $200 at 20% each month in addition to the monthly payments the household is required to pay the Clerk of Court. (If the individual fails to make payments to the Clerk of Court, the worker must continue to recoup at 20% until the claim is paid in full.) The total amount of the collection MUST NOT exceed the claim amount. The worker must keep in contact with the Clerk of Court.
  2. A closed SNAP case has a $500 claim and is court ordered to repay $300. The court order does not state the remaining amount of the claim is void.  If no payments are made, the claim will remain in TECS for TOP (Treasury Offset Program).
  3. A SNAP case is reopened, has a $500 claim, and is court ordered to repay $300. The court order does not state the remaining amount of the claim is void. The worker must recoup the remaining $200 at 20% each month. (If the individual fails to make payment to the Clerk of Court, the worker must continue to recoup at 20% until the claim is paid in full.) The total amount of the collection MUST NOT exceed the claim amount. The worker must keep in contact with the Clerk of Court.