If you are receiving SNAP/food stamp benefits, DTA must collect the overissuance by reducing your benefits, unless the claim is being collected at a higher amount some other way. 7 C.F.R. § 273.18(g)(1). See When can DTA cut my benefits to pay back an overissuance?
If you are no longer receiving benefits, DTA will ask you to sign a repayment agreement and agree to pay a certain amount of money each month. If you do not agree to do this, DTA can refer your claim to the U.S. Treasury, which can reduce Social Security and most other federal benefits payable to you, can attach federal wages, and can intercept a federal tax refund. See 7 C.F.R. § 273.18(n). SSI, TAFDC, EAEDC and veterans' benefits cannot be reduced to repay benefits.
A criminal court can order you to pay back the SNAP/food stamp benefits you received if it finds you committed fraud.
In addition, DTA says it can collect by civil court action, intercepting your unemployment compensation, attaching your wages, or other "reasonable" means. 106 C.M.R. § 367.510. Federal rules say that DTA can intercept your unemployment compensation only if you agree or if a court orders interception. 7 C.F.R. § 273.18(g)(6).
If the full amount of the claim cannot be collected in three years without causing you financial hardship, DTA can compromise the claim by reducing it to an amount that can be collected in three years. 106 C.M.R. § 367.510.
If the claim is for an unintentional program violation, DTA can suspend collection if your household is not receiving benefits, and DTA determines that the cost of collection will be more than DTA is likely to recover. 106 C.M.R. § 367.495(H). But for current recipients, DTA says it will not reduce the claim below the amount that could be collected by reducing your benefits. 106 C.M.R. § 367.510.
Check with an advocate especially if DTA uses any means other than reducing current benefits to collect an overpayment. Also check with an advocate if collection will cause your family hardship. Do not agree to repayment terms that you will not be able to meet or that will cause your family hardship.
Unless the amount of the claim was set at an intentional program violation hearing, you have a right to request a fair hearing. You have 90 days to request a fair hearing. See What are my rights if DTA denies or cuts my benefits? A fair hearing request should stop collection of the overpayment until the hearing officer makes a decision. 7 C.F.R. § 273.18(e)(6). Contact an advocate if DTA tries to collect the overpayment while your hearing request is pending.
Produced by Patricia Baker, Laura Gallant, Deborah Harris, Rochelle Hahn Massachusetts Law Reform Institute Last updated January 2011
