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Veterans' News and Issues By MICHAEL CLEMENTS The Department of Veterans Affairs (VA) created a debt collection system in 1975 that is now known as the Debt Management Center (DMC) at Ft. Snelling, Minn. DMC is charged with recovering funds owed to the VA and provides collection services for both the Veterans Benefit Administration (VBA) and the Veterans Health Administration (VHA). Funds recovered from benefit overpayments are returned to veteran appropriations and are used to help fund current and future claims. Funds recovered for prescription co-payments and medical services found to be ineligible due to means test criteria, are returned directly to the servicing VA medical center. VA attempts to collect debts in one lump sum whenever possible. If the debtor is unable to pay in one lump sum, payment may be accepted in installments. Arrangements to pay in installments should liquidate the debt in a reasonable timeframe considering the size of the debt and the debtor's ability to pay. Most plans are established to clear the debt within one year, but they may extend up to three years. Debtors must submit VA Form 5655, Financial Status Report with their payment proposal for consideration. Please contact the Portage County veterans service officer at 715-346-1311 or email:
clementm@co.portage.wi.us if you have any questions about this topic or any other veterans' benefits programs. |
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