VA Beneficiary Debt Collection Improvement Act

VA Beneficiary Debt Collection Improvement Act

This bill addresses the administration of debt related to Department of Veterans Affairs (VA) programs and benefits.

Specifically, the bill prohibits an individual from incurring a debt to the United States that arises from participation in a VA benefits program and is attributable to the failure of the VA to process information according to its timeliness standards.

The VA must notify an individual if it has made an overpayment to the individual and include in the notice information on the right to dispute the overpayment or request a waiver of indebtedness. The VA is prohibited from taking action regarding an overpayment until 90 days after the notice is issued, except in specified circumstances.

The VA is prohibited from charging interest or administrative costs for debts related to its disability compensation program, pension program, or educational assistance program.

The bill extends from 180 days to one year the deadline by which an individual may request a waiver for relief from paying a debt related to VA benefits.

Additionally, the VA is prohibited from seeking to recover a debt if it determines the cost to the VA to recover the debt would exceed the amount of the debt itself.

The VA must establish an administrative process for the dispute of a debt's existence or the amount of the debt. The VA is prohibited from deducting from an individual's VA benefits to offset a debt if the amount of the debt is being disputed.