Overpayment recovery

Frequently Asked Questions

1. What is an overpayment?
   
   An overpayment is any cash, medical, food stamp or vendor payment made by the Department that is more than a person is eligible for and is received by, or on behalf of, that person. An overpayment can also occur when the Department is not reimbursed for Interim Assistance after a client receives a retroactive SSI lump sum payment.
   
   
2. How does an overpayment happen?
   
   An overpayment can happen in several ways. Following are the most common reasons:
   
   
   1. A client or their representative (either intentionally or unintentionally) did not provide correct or complete information to the branch office.
      
      
   2. A client or their representative (either intentionally or unintentionally) did not report changes in their circumstances due to income, household composition or other benefits, lump sum payments, employment status or receipt of property that would directly affect eligibility.
      
      
   3. Any alteration of a benefit check, medical card or Electronic Benefit Transfer card.
      
      
   4. The department representative fails to note changes reported by the client that would affect eligibilty and continues to issue benefits based on the previously obtained information.
      
      
3. If I have an overpayment, can I still receive benefits?
   
   Yes. If you have a need and have not been disqualified for any reason, such as Fraud or Intentional Program Violation, you can receive benefits if you still meet other eligibility requirements.
   
   
4. Do I HAVE to pay it back?
   
   Yes.
   
   
5. Why do I have to pay it back?
   
   Oregon Administrative Rule 461-195-590 states that any overpayment amount is a debt and becomes a delinquent account owed to the State of Oregon, subject to collection.
   
   
6. How is an overpayment repaid?
   
   There are several ways to repay an overpayment. They are as follows:
   
   
   1. Payment in full by check, money order, or credit card.
      
      
   2. Monthly payments. Payment arrangements can be made by contacting the Overpayment Recovery Unit either by phone or mail. A monthly payment plan must be approved by the Revenue Agent assigned to your case.
      
      
   3. Reduction of benefits. If you have an open on public assistance or food stamps case, and your overpayment results from the same program, your overpayment will be paid by reducing your benefits 10% per month (minimum $10.00) or any amount over this you may specify. If you have unused benefits and would like them applied as a lump sum, notify your branch worker.
      
      
   4. Tax Refunds. If you have a State or Federal income tax refund, it will be applied to your case as follows: State refund only will be applied to public assistance overpayments. State and/or Federal refund will be applied to food stamp overpayments. The amount kept by the Department will never exceed the total amount of the overpayment(s), plus any fees charged to the Department by the taxing agency.
      
      Exceptions to the above would include clients who are open on food stamps at the time their Federal refund is offset, clients who have acceptable payment plans and who have exhibited consistent payment habits may also be excluded from Federal tax offset.
      
      
   5. Wage garnishment. If you do not set up an approved payment plan.
      
      
   6. The Overpayment Recovery Unit now accepts credit cards (Visa, Mastercard, and Discover).
      
      
7. What are the differences between Client Error, Administrative Error and Pending Fraud or Fraud overpayments?
   
   Following are the definitions of the different types of overpayments:
   
   
   1. Client Error: A Client Error overpayment occurs when the client or their representative unintentionally did not provide correct or complete information to the branch office or a client or their representative unintentionally did not report changes in their circumstances due to income, household composition or other benefits, lump sum payments, employment status or receipt of property that would directly affect eligibility.
      
      
   2. Pending Fraud/Fraud: A Pending Fraud overpayment occurs when the Division is investigating whether a client or their representative intentionally did not provide correct or complete information to the branch office, intentionally did not report changes in their circumstances due to income, household composition or other benefits, lump sum payments, employment status or receipt of property that would directly affect eligibility or altered a benefit check, medical card or Electronic Benefit Transfer card.
      
      An overpayment becomes a Fraud Overpayment when either the client admits to the acts being investigated or the case is brought to an Intentional Program Violation hearing or court and the client is found guilty of the acts. If the investigation finds that the client was not intentionally attempting to obtain benefits fraudulently, the overpayment is changed to Client Error.
      
      
   3. Administrative Error: An Administrative Error Overpayment occurs when the Department representative fails to note changes reported by the client which would affect eligibilty and continues to issue benefits based on the previously obtained information.
      
      
8. What are my rights?
   
   Your rights are as follows:
   
   
   1. You have the right to a fair hearing. For Public Assistance or Medical overpayments, you have the right to request a fair hearing within 45 days of the date of Notice of Overpayment and Planned Action. For Food Stamp overpayments you have the right to request a fair hearing within 90 days of the date of Notice of Food Stamp Overpayment and Request for Payment.
      
      
   2. You have a right to copies of the records used to calculate the overpayment.
      
      
   3. You have a right to discuss your case with Department Personnel.
      
      
9. Do you have an 800 number?
   
   Yes. Our toll-free number is (800) 273-0548
   
   
10. Who do I call to discuss my overpayment?
    
    Overpayment Recovery Unit at 503-373-7772 (Salem area) or 800-273-0548 (toll free).
    

Our office hours are from 8:00 a.m. to 5:00 p.m. If you have questions not addressed above, please call our office.

Back to top