TN 42 (08-18)

SI 02220.052 SSI Overpayment – Field Office (FO) Actions When Individual Fails to Make Installment Refunds - Case Not Under RECOOP

A. Introduction

Once a debtor fails to make an installment payment on time, the ability to complete repayment of the entire debt becomes less likely. Therefore, careful follow-up of overdue installment payments is critical to achieving full recovery of overpayments. For cases that do not have an Accounts Receivable Code (ARC) 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. Initial Follow-up Attempt

The initial follow-up is the most critical. It should occur 10 days following the due date of the installment payment (per the installment agreement terms). Take the following steps:

  • Attempt to contact debtor by telephone;

  • Allow 10 days to receive the payment after successfully contacting debtor;

  • Attempt to contact the debtor again by telephone or send a call-in letter, 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 Follow-up Attempt

If the payment is not received 20 days after the initial follow-up, take the following steps:

  • Make the second follow-up to contact the debtor by telephone;

  • Allow 10 days to receive the payment, as well as the next month's payment;

  • Follow the instructions in SI 02220.052B.1 above stating to contact the debtor by phone (or send a call-in card) 5 days after the second follow-up attempt.

NOTE:  Send the bill for the next month's payment, if monthly billing is used. Also, when an installment refund is 40 days overdue (and the second payment is currently 10 days overdue), the final action varies depending upon the amount of the unpaid balance of the debt.

3. Final Action

If the individual still does not send the installment payment even after the two follow up attempts, follow the instructions in the chart below:

IF

THEN

The overpayment balance is less than $30.01

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

The overpayment balance is between $30.01 to $3000

  • 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. Select either “UNWILLING TO REPAY” option or the “UNABLE TO REPAY” option (depending on the given scenario).

  • To discontinue collection action (see SM 01311.200), 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).

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

The overpayment balance is $3000 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 we may refer unpaid debts that he/she owes SSA to DOJ for action in civil court (see SI 02220.035).

Attempts to personally contact debtor is unsuccessful

  • Complete the MSSICS Overpayment Decisions (UOPD) screen by selecting the “UNWILLING TO REPAY” or “UNABLE TO REPAY” option (depending on the given scenario).

  • To discontinue collection action (see SM 01311.200), 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).

Referral to DOJ is appropriate

See SI 02220.035 to take action to refer the overpayment to DOJ.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0502220052
SI 02220.052 - SSI Overpayment – Field Office (FO) Actions When Individual Fails to Make Installment Refunds - Case Not Under RECOOP - 08/31/2018
Batch run: 08/31/2018
Rev:08/31/2018