WAG 23-05-02: SNAP Overpayments

PM 23-05-02

  • revised manual textA repayment agreement is centrally sent with a demand letter when an overpayment is reported to Bureau of Collections (BOC). A repayment agreement is centrally sent, out of ARS, with a demand letter and a Notice of Overpayment after an overpayment claim has been established. Forms used are:
    • Demand Letter Intentional SNAP Program Violation (IL444-2551)
    • Repayment Agreement Intentional Program Violation (IL444-2551A)
    • Demand Letter Inadvertent Household Error (IL444-2555)
    • Repayment Agreement Inadvertent Household Error (IL444-2555B)
    • Demand Letter Administrative Error (IL444-2556)
    • Repayment Agreement Administrative Error (IL444-2556A)
  • BOC makes all repayment arrangements, including negotiating all installment repayment plans for canceled SNAP cases.
    • revised manual testSNAP households send their repayments to:
    • Bureau of Collections
    • Field Recovery Unit
    • PO Box 19502
    • Springfield, IL 62794-9822.

Replacing SNAP Benefits

  • FCRC: When replacing voided SNAP benefits that have had a recoupment deducted, authorize the replacement benefits in the same amount as the issuance that is being replaced (the allotment shown on the IES Benefit Summary Inquiry page).

Change in Overpayment Amount

  • FCRC: If an FCRC believes that the overpayment amount has changed, send Change of Overpayment Information - Part I: Case Identification Complete for all Referrals (IL444-2404C) to the Bureau of Collections via DHS.BOC.Ovrpmt.Referral@illiois.gov.
  • The overpayment claim in ARS (PF10) is changed:
    • if recoupment occurred on a voided Illinois Link issuance and
    • benefits were not replaced.
  • BOC: Adjusts ARS. The recoupment amount should not have been credited because the SNAP household did not revised manual textreceive that issuance. The procedure is delayed at least 60 days to allow for replacement actions to occur. deleted text

Example: As of March, Ms. J's claim balance is $235. The balance reflects credit given for a $10 recoupment in January. January benefits were voided because Ms. J moved out of state. The adjustment procedure removes the $10 credited toward her claim. The overpayment balance after adjustment is $245.

Customer Questions about Repaying Overpayment

revised manaul textFCRC: If a customer contacts the FCRC about repaying an overpayment, refer the customer to Bureau of Collection via 1-800-457-6273.

revised manual textPayment Made at FCRC

  • If a cash payment is made at the FCRC
  1. Complete Payment Transmittal Slip (IL444-3021).
    1. Check the "Overpayment - SNAP" section.
  2. Send the payment and completed IL444-3021 to: 
    • Bureau of Collections
    • Field Recovery Unit
    • PO Box 19502
    • Springfield, IL 62794-9822
  • When a SNAP household wants to repay an overpayment by returning Illinois Link SNAP benefits: 
  1. revised manual textFCRC/Customer: Complete the top section of Return of Illinois Link SNAP and/or Cash Benefits (IL444-3660). Specify on the IL444-3660 the amount and the reason (Pay on a Claim or Avoid a Claim) for the return of SNAP benefits. If an overpayment claim has already been established the FCRC should determine if the customer was eligible for the benefits they are returning. If so, the FCRC will check the box to Pay on a Claim. If the customer was not eligible for the benefits, the FCRC should check the box to Avoid a Claim.
  2. Customer: Signs and dates IL444-3660.
    1. If the customer is returning cash benefits to revised manual textavoid a claim, do not complete Overpayment Referral (IL444-2404).
  3. Fax IL444-3660 to the EBT Unit at (217) 524-3124 or email to DHS.LINK@illinois.gov.
    1. Make a copy of IL444-3660.
    2. Give the copy to the customer.
  4. Upload the original to the customer's electronic case file in IES.
  • The automated process sends a transaction from revised manual textebtEDGE to ARS to notify BOC that an adjustment needs to occur.

Credit Balance

  • When a customer's SNAP claim has a credit balance, a refund may be due to the customer.
  • deleted manual text
    • BOC: Approves the refund to the customer, if a refund is due or transfers the payment to another applicable claim and corrects the accounts receivable file, if no refund is due.