871—25.7(96) Determination of overpayment by reason of claimant’s fault or fraud.
	25.7(1)  Determination by reason of the claimant’s own fault, employer’s fault, agency fault, or fraud as provided in Iowa Code section 96.16, that the claimant has received benefits to which such claimant was not entitled shall be made by the investigations and recovery unit on the basis of such facts as it may obtain.
	25.7(2) A notice of such determination shall be promptly given to the affected claimant. Such notice shall be dated and shall advise the claimant as to the benefit weeks involved and shall advise the claimant as to the reason for overpayment and the total amount of said overpayment. Unless the claimant, within ten days after such notification was mailed to the claimant’s last-known address, files with the department a written request for review of, or an appeal from, such determination, the determination shall be final. Timeliness shall be determined by postmark within ten calendar days from the date of mailing shown on the decision or be received by the department within ten calendar days from the date of mailing.
	25.7(3) Upon receiving a written request for review, the investigation and recovery bureau, based upon such facts as it has or may acquire, may affirm, modify, or reverse the prior decision or refer the matter to an administrative law judge. The claimant shall be promptly notified of such decision or referral. Unless the claimant files an appeal within ten calendar days after the date of mailing, such decision shall be final. Timeliness shall be determined by postmark within ten calendar days from the date of mailing shown on the decision or be received by the department within ten calendar days from the date of mailing.
	25.7(4) The claimant may directly appeal the decision of the investigation and recovery bureau without a request for review, in which case the appeal will be referred directly to the appeals section of the department.
	25.7(5) Claimants affected by determinations made in accordance with this rule shall have the same rights to further appeal as are provided in Iowa Code section 96.6.
	25.7(6) When such determination has become final the benefits shall be recovered.
	a. 	The department shall always demand immediate repayment of the overpayment as its first option for those claimants not in benefit claiming status at the time of the initial overpayment determination. If not paid immediately, the overpayment amount will be deducted from future benefits. Recovery of overpayments due to misrepresentation or fraud may also include the filing of a notice of lien or other civil action. Upon finalization of the determination of overpayment by reason of a claimant’s fault or fraud, interest shall accrue at a rate of 1/30th of 1 percent per day until the overpayment is paid in full.
	b. 	The department shall mail a first statement of overpayment to the claimant’s last-known address. This statement will request full repayment to the department.
	c. 	If a claimant fails to respond to the first statement of overpayment a second statement shall be sent 30 days later. The second statement notifies the claimant that full repayment must be made. If the claimant cannot make full repayment the department will consider a monthly repayment agreement. Monthly amounts based on the minimum repayment agreement schedule below will be printed on the second billing. The first repayment is expected 10 days from the date of the second repayment statement and the additional repayments every 30 days thereafter until the debt is paid in full. The department reserves the right to accept or reject any proposed repayment agreement. The following minimum repayment agreement is acceptable by the department.

Amount of
Original
Overpayment	 	Minimum
Monthly
Payments	 	Number of Months
Required to Liquidate
the Overpayment	
Under $199	 	$ 25	 	1 to 8	
$200 to $399	 	$ 40	 	5 to 10	
$400 to $599	 	$ 50	 	8 to 12	
$600 to $799	 	$ 65	 	9 to 13	
$800 to $999	 	$ 80	 	10 to 13	
$1000 to $1499	 	$ 90	 	11 to 17	
$1500 to $1999	 	$100	 	15 to 20	
$2000 to $2999	 	$110	 	18 to 28	
$3000 and over	 	$130	 	23 to —	
	d. 	If a claimant fails to respond to the second repayment statement a third notice shall be sent in approximately 30 days. The department has the option to send a notice which allows the claimant another 10 days to make full repayment of the indebtedness or a partial payment with an acceptable signed repayment agreement to prevent further collection action by the department, or the department may send a lien warning letter as the third billing notice. This warning gives 10 days to make full payment which will prevent lien filing. The department may proceed with any appropriate civil action to collect the debt which would include, but not be limited to, a judgment in a court having jurisdiction over the matter. The same type of action may be pursued by the department in those cases where a claimant defaults on a repayment schedule.
	e. 	If the department receives a cash repayment to liquidate all or part of an indebtedness the department shall issue a receipt and mail it to the claimant’s last-known address. If the department receives a repayment that is not identified by a social security number, name or other means of identification, the money shall be retained until such time as a positive identification can be made and proper credit given to the claimant.
	f. 	An overpayment to the claimant will cause the employer to be relieved of charges except when the overpayment is a result of payment of a back pay award.
	g. 	Reserved.
	h. 	An underpayment of $5 or less will not be set up and paid to an individual unless the individual requests the payment in writing.
This rule is intended to implement Iowa Code sections 96.3(3), 96.3(7), 96.4(3), 96.5(1), 96.5(3), 96.6(1), 96.8(5), 96.11(1), 96.16, and 96.19(38).
[ARC 3247C, IAB 8/2/17, effective 9/6/17; ARC 3248C, IAB 8/2/17, effective 9/6/17]