A repayment agreement is sent to the household with the demand letter. The debtor is given two options:
- repay with check, money order, or with SNAP benefits
- household’s SNAP benefits being reduced each month
The debtor(s) signs one of the agreements according to the best repayment method for the household. If the debtor wishes to enter into a repayment agreement, refer them to the Claims and Restitution Unit at 573-751-3004.
If the household chooses to not agree to make repayment and the household has an active SNAP case, a benefit reduction is applied. Benefit reduction is also known as recoupment. If any responsible member of the household is receiving SNAP benefits, the system may begin automated recoupment of SNAP benefits (see 1142.055.15.20 Automated Recoupment of SNAP Benefits).
If the CARS-3 Repayment Agreement is returned with a method of repayment other than recoupment, forward the CARS-3 Repayment Agreement to DLS.CANDRTEAM@dss.mo.gov.
If the CARS-3 Repayment Agreement is returned with the benefit reduction section completed, take no action as the system automatically initiates the benefit reduction.
A participant may request renegotiation of a repayment agreement. If the agency agrees with the request, a new payment is negotiated and the participant signs a new agreement. If the agency finds the household’s economic circumstances have not changed enough for the repayment agreement to be changed, the original repayment amount remains. The request for renegotiation and the reason for the decision is recorded on the Note Add (OVNA) screen.
If the household is receiving SNAP benefits, the repayment agreement cannot be less than the amount that can be recovered with recoupment. The repayment agreement is not renegotiated when the SNAP benefit amount changes. The recoupment amount will be the repayment agreement amount, the minimum recoupment allowed, or a percentage of the allotment, whichever is the greatest.