The Department must send a demand letter to the sponsor. The
demand letter must include the amount owed, the reason for the claim, and the
repayment options. The demand letter must tell the sponsor he will not have to
repay, if he can show he did not give false statements or withhold information
about his circumstances. Collection action may be stopped if documentation is
obtained showing the sponsor cannot be located. Collection action may be
stopped if the cost of collection exceeds the amount to be recovered. If the
sponsor responds to the demand letter, a lump sum cash payment may be collected
if the sponsor can pay the claim at one (1) time. If the sponsor cannot pay by
lump sum, a monthly repayment schedule may be negotiated. Sponsor repayments
must be recorded in the case file and identified as either an IHE or IPV claim.
(3-17-22)
