TN 15 (09-01)

SI 02220.052 SSI Overpayment - FO Action When Individual Fails to Make Installment Refunds - Case Not Under RECOOP

A. Introduction

Once a debtor fails to make an installment refund on time, the ability to complete repayment of the entire debt becomes questionable. Therefore, careful followup of overdue installment refunds is critical to full recovery of overpayments. For cases that do not have an ARC code of 1,2,3 or 4,the FO is responsible for following up on overdue installment refunds through a combination of telephone and written reminders.

B. Procedure

1. First followup

The first followup is the most important and should always occur 10 days following the due date of the installment.

You should make this followup by telephone.

Allow 10 days to receive the payment.

Try to reach the debtor by telephone or send a call-in card, to confirm receipt 5 days after contact, if payment is not received. Confirm the receipt of the notice and determine the exact date for repayment.

2. Second followup

Make the second follow-up 20 days after the date of the first follow-up. SI 02220.052B.1..

NOTE: If monthly billing is used, the bill for the next month's payment would also be sent at this time.

Allow 10 days to receive the payment, as well as the next month's payment. However, as in SI 02220.052B.1 above, attempt to contact the debtor by phone (or send a call-in card) 5 days after following up.

NOTE: When an installment refund is 40 days overdue (and second payment is now 10 days overdue), the final action varies depending upon the amount of the unpaid balance of the debt.

3. Final action

a. Balance under $30.01

Suspend further collection activity and input a DB TAC, if the individual is unwilling to repay or a DC TAC if the individual is unable to repay (see SM 01311.200).

b. Balance between $30.01-$3,000

Send the debtor an Urgent Notice and attempt to contact the debtor 3 days later by telephone. Remind the debtor that the debt may still be referred to Treasury for offset and credit bureau reporting. If necessary, discuss a compromise settlement (see SI 02220.030) for the remainder of the unpaid debt.

If no contact is made with the debtor, or if a compromise cannot be reached, complete the MSSICS Overpayment Decisions (UOPD) screen and selecting UNWILLING TO REPAY or UNABLE TO REPAY as appropriate so the system builds a DB TAC, if the individual is unwilling to repay or a DC TAC if the individual is unable to repay (see MSOM BUSSR 004.008 and SM 01311.200) to discontinue collection action. (See 2220.050B.3.).

Consider whether liability (see SI 02201.020 through SI 02201.023) exists for recovering the debt from someone other than the individual who originally agreed to refund by installment. If it does, attempt recovery from that person.

c. Balance is $3,000 or more

Attempt a personal visit with the debtor to discuss payment of the past due installments.

Remind the debtor that the debt may still be referred to Treasury for offset and credit bureau reporting.

Discuss a compromise settlement (see SI 02220.030).

Inform the debtor that unpaid debts to SSA may be referred to DOJ for action in civil court (see SI 02220.035).

d. Attempts to personally contact debtor-unsuccessful

If attempts to personally contact the debtor are unsuccessful, complete the MSSICS Overpayment Decisions (UOPD) screen by selecting the UNWILLING TO REPAY or UNABLE TO REPAY as appropriate. DB TAC, if the individual is unwilling to repay or DC TAC if the individual is unable to repay. (See MSOM BUSSR 004.008 and SM 01311.200) to discontinue collection action.

e. Refer overpayment to DOJ

Take action to refer the overpayment to DOJ, if appropriate. See SI 02220.035.


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