CARS automatically initiates recoupment for any claim that is eligible to be paid for an active food stamp EU through reduction of food stamp benefits. CARS knows when to begin recoupment on food stamp claims. Information entered in the repayment agreement fields assists the system in deciding the amount to recoup and when to start. Claims are eligible for recoupment if:
- any responsible member of the claim receives food stamp benefits, and
- it has been thirty days since the date the claim was established.
There will be no recoupment of food stamp benefits if:
- a repayment agreement has been entered, and payments are being made equal to the amount of the agreement, or
- a hearing is requested, until the decision is made and entered on the CLAIM CHANGE (OVCC) screen.
The system also knows how much to collect on claims:
- For IPV claims CARS chooses the greatest of the repayment agreement amount entered on OVCC, 20% of the allotment, or $20.
- For IHE, AE, or SPV claims CARS chooses the greatest of the repayment agreement amount entered on OVCC, 10% of the allotment, or $10.
If a responsible member of a claim is receiving food stamps in any EU, that allotment may be reduced to pay for the overpayment.