621.07 Suspending or Terminating Collection Action (FSM)

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OSI may suspend collection action against nonparticipating households. Criteria for doing so depends on which claim type is the object of the collection. See Part 713 for treatment of Intentional Program Violators.

Collection action may be suspended when at least one demand letter has been sent for DHHS Administrative Error and Inadvertent Error Claims. One of the following conditions must be met:

• the household cannot be located, or

• the cost of further collection is likely to exceed the amount recovered.

A claim may be determined uncollectible (terminated) after it has been suspended for 3 years.

Suspended or terminated claims continue to be used to offset benefits.

References: He-W PART 708, RSA 161:10, 7 CFR 273.16 - .18