713.21 Methods of Collection SR 95-47, 07/95 (FSM-A)

Several methods are used to collect repayments of overissuances. See Section 621.03, Rate and Method of Collection. These methods are:

• lump sum payment,

• installments,

• allotment reduction, or

• IRS Tax Refund Offset. See Section 713.23, When the Household Fails to Make Proper Payment

A household must repay an overissuance through allotment reduction if the claim has not been satisfied through a lump sum payment or establishment of an installment plan. The amount of the monthly reduction is 20% of the allotment or $10, whichever is greater.

OSI need not send a notice of adverse action when it begins allotment reduction. OSI will send the household a notice informing it of the formula for determining the amount to be recovered each month and the availability of other methods of payment.

Food stamp coupons may be used for repayment instead of cash. When coupons are returned to the District Office, send them to BDM accompanied by Form FNS 135. BDM will notify OSI of all coupons received as repayment. See Part 621.

The allotment of one- and two-member households cannot be reduced below the $10 monthly minimum. See Chapter 600, Standards and Budgets