ENTERING REPAYMENT AGREEMENTS

If the Repayment Agreement is returned with Benefit Reduction section completed, no further action is needed by county staff.  The automated recoupment program will calculate the amount of the reduction based upon the program type of the claim.

If the Repayment Agreement is returned with a method of repayment other than benefit reduction to: 

• the county, a person designated by county administration will enter the agreement into CARS. 

•  the Claims and Restitution (C&R) Unit, the C&R staff will enter the agreement into CARS. 

• METHOD OF REPAYMENT (OVCD 0008)
• FREQUENCY (OVCD 0009),
• BEGINNING DATE (the date the agreement is signed), and 
• AMOUNT.

The Repayment Agreement is filed in the CLAIMS SECTION of the case record. 

EXAMPLE: If the repayment agreement is signed 11/12/01 and is returned to make a CHECK, MONEY ORDER, OR BENEFITS REPAYMENT AGREEMENT payment of $50 monthly, enter the following:

AGREEMENT   METHOD OF REPAYMENT    01    FREQUENCY M

BEGINNING DATE     11 12 01   AMOUNT      50.00

The debtor has a legal obligation to pay $50 a month.  In order to remain current on this debt, a payment must be received in the amount of $50 each month.  If the food stamp household is receiving food stamp benefits, the allotment is reduced by the appropriate amount ($50 or 10%/$10 or 20%/$20, whichever is higher), regardless of what method of repayment is entered.

CARS will automatically initiate recoupment on any claim that is eligible to be paid 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.  The system also knows when to collect on claims when no entries are made in the repayment agreement fields.

For Intentional Program Violation (IPV) claims CARS will choose the repayment agreement AMOUNT entered on OVCC, 20% of the allotment, or $20, whichever is greater.

For Inadvertent Household Error (IHE) claims CARS will choose 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 food stamps in any household, that allotment may be reduced to pay for the overpayment. 

CLAIMS AGAINST HOUSEHOLDS WHICH CONTAIN AN INDIVIDUAL DISQUALIFIED FOR INTENTIONAL PROGRAM VIOLATION

The system currently calculates the recoupment amount based on what the household would have been entitled to receive if an individual disqualified for IPV was still participating.  Beginning with February 2002 payrolls, the recoupment amount is calculated based on the allotment the household actually receives.

Example: The Williams household consists of Wendy and her son.   Wendy is found guilty of committing an IPV.  An IPV claim is established and Wendy is disqualified.  The household would have been eligible for $248 if Wendy was included.  The household is now eligible to receive an allotment of $135 with Wendy disqualified.  The automated recoupment is $27, which is 20% of the $135 allotment.

• Review memorandum with appropriate staff. 

• Repayment Agreements returned to the county office will be entered on OVCC by county staff. 

• Repayment Agreements returned to C&R will be entered on OVCC by C&R staff.

• No manual entries are made on FSU5 in the recoupment fields.