After a claim for an overpayment of SNAP benefits is established in the Claims Accounting and Restitution System (CARS), it may be discovered that there is:
- no overpayment
- less overpayment, or
- more overpayment
Terminate the entire amount if a claim was established in error or if the decision was reversed in a hearing. If there have been collections on a claim established in error, the collections are refunded. For instructions to terminate the claim and notify State Office to refund the collections, refer to CARS User Guide Terminating or Closing a Claim.
More Overpayment (Increase the Debt)
If it is discovered a claim was originally established for less than it should have been, establish a new claim for the difference. Record on CARS System Note Add (OVNA) the reason for the increase, tying the two claims together.
Less Overpayment (Decrease the Debt)
If it is discovered a claim was originally established for more than it should have been, submit a Claim Payment Transmittal (CARS-2) requesting the balance be reduced using transaction code 22, credit. Write on the top of the CARS-2 the reason for the reduction. Record the reason for the reduction and describe the documentation used to make the decision on OVNA.