When a claim is entered into CARS, the process to collect the overpaid amount begins. The EU receives a demand letter telling them the Food Stamp claim balance, repayment procedures, hearing rights, and compromise option for some claims. After the demand letter is generated, the EU does not receive another notice regarding the Food Stamp claim balance or hearing rights on this specific claim.
If a debtor does not return the original repayment agreement and wishes to enter an agreement to repay the Food Stamp debt, give the debtor the CARS-7 Food Stamp Repayment Agreement.
Collections are made against only one EU with at least one responsible debtor for a single claim when responsible claim members reside in multiple Food Stamp EUs.