CARS automatically initiates recoupment for any claim that is eligible to be paid for an active SNAP household through reduction of SNAP benefits. CARS knows when to begin recoupment on SNAP 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 SNAP benefits, and
- it has been thirty days since the date the claim was established.
There will be no recoupment of SNAP 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 Intentional Program Violation (IPV) claims, CARS collects the amount of the repayment agreement entered on OVCC, 20% of the allotment, or $20, whichever is greater.
- For Inadvertent Household Error (IHE), Agency Error (AE), or Suspected Program Violation (SPV) claims CARS collects the amount of the repayment agreement amount entered on OVCC, 10% of the allotment, or $10, whichever is greater.
If a responsible member of a claim is receiving SNAP in any household, that allotment may be reduced to pay for the overpayment.