When a food stamp claim is entered into the Claims Accounting Restitution System (CARS) the process to collect the overpaid amount begins.  Households with food stamp claims receive CARS-3 notices generated by CARS advising them of the food stamp claim balance, repayment procedures, and their hearing rights.  Once the CARS-3 notices are sent out, households may not receive another notice regarding the food stamp claim balance or hearing rights.

If it is later determined that the food stamp claim balance for a particular period of time must be increased, do not increase the balance of the established claim in CARS.  If the claim balance is increased, new CARS-3 notices advising the household of the increased amount are not sent, and households are not given their hearing rights.

If the claim balance must be increased, take the following action:

• Write up the new claim;

 
• Compare the amount of food stamp benefits the household was entitled to receive in the new claim with the amount for the same month in the existing claim;

 
• Total the amounts of the difference for each month, plus any months that were not previously included in the existing food stamp claim; and

 
• Enter the food stamp claim into CARS.

Review this memorandum with all appropriate staff.

 

Do not increase claim balances of existing food stamp claims.

 

Establish a new claim if it is determined the food stamp claim balance should be increased.