Consumer Banking and Payments Law: 8.8.2.4 Benefit Adjustments Based on State Claims Against Recipients
A state agency may assert a claim against the recipient for trafficking187 or overpayments caused by system errors or incorrect determination of a benefit amount.188 The food stamp regulations contain specific rules for calculating and collecting the claim, depending upon whether it is an intentional violation by the household, is unintended or due to a household’s misunderstanding, or is an erroneous overpayment by the agency.