PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:           13 August 2002
	DOCKET NUMBER:   AR2002072811

	I certify that hereinafter is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in the case of the above-named individual.  

	Mr. Carl W. S. Chun		Director	
	Mr. Joseph A. Adriance		Analyst	

  The following members, a quorum, were present:

	Mr. Fred N. Eichorn		Chairperson	
	Mr. Ted S. Kanamine		Member	
	Ms. Lana E. McGlynn		Member	

	The applicant and counsel if any, did not appear before the Board.

	The Board considered the following evidence:

	Exhibit A -  Application for correction of military 
                             records
	Exhibit B -  Military Personnel Records (including
	                  advisory opinion, if any)

FINDINGS:

1.  The applicant has exhausted or the Board has waived the requirement for exhaustion of all administrative remedies afforded by existing law or regulations.

2.  The applicant requests, in effect, that he be reimbursed $482.16 that was erroneously collected from his pay.

3.  The applicant states, in effect, that he submitted a remission/cancellation of debt request to his finance office in Panama and it was his understanding that once the request was submitted, the debt should have been suspended pending the outcome of the request.  His request for remission/cancellation of debt was later approved by the Total Army Personnel Command (PERSCOM), and he has now again received a letter of indebtedness on the same debt.  

4.  The applicant’s military records show that as of the date of his application to this Board, he was serving on active duty and assigned to the United States Army Garrison, Fort Irwin, California.  

5.  On 26 January 1998, while the applicant was serving in Panama, he was notified by the Finance and Accounting Officer, Headquarters, United States Army South, Panama, that he was indebted to the government in the amount of $1,085.00 due to an overpayment of Family Separation Allowance (FSA-R).  The applicant was given a suspense date of 26 February 1998 to reply.  

6.  On 9 February 1998, the applicant prepared and his unit commander verified an Application for Remission or Cancellation of Indebtedness (DA Form 3598-R). However, the debt had already began to be collected. In addition, the applicant’s battalion commander submitted a memorandum to the Finance and Accounting Officer, Fort Clayton, Panama, in which he requested that the collection of the applicant’s debt be suspended.  

7.  On 25 August 1998, the Chief, Special Actions Branch, PERSCOM, approved the applicant’s request for cancellation/remission of indebtedness in the amount of $542. 57.  However, since $542.43 of the total debt had been collected prior to the date of the commander’s signature on the application, it could not be considered for remission or cancellation.  The applicant was advised to apply to this Board for relief if he believed there was an error or injustice surrounding the collected portion of the debt.  

8.  On 19 April 2002, the Chief, Defense Military Pay Office, Fort Irwin, provided a memorandum for this Board.  It states that the finance office in Panama that submitted the applicant’s remission/cancellation of indebtedness packet erroneously stated that the uncollected portion of his debt was $542.43, when in fact it was only $482.16.  The $482.16 was collected even though the applicant notified the finance office that he was submitting a remission/cancellation of indebtedness packet.  However, according to the regulation, the finance office should have suspended the debt until a response was received by the approving authority for the remission/cancellation of indebtedness request. 

9.  Army Regulation 600-4 provides instructions for submitting and processing applications for remission or cancellation of indebtedness to the United States  Army.  Applications must be based on injustice, hardship, or both. This includes debts caused by errors in pay to or on behalf of a soldier.  Chapter 3 provides the administrative procedures for submitting an application for remission/cancellation of indebtedness.  Paragraph 3-4 outlines the responsibilities of the Finance and Accounting Officer in the application process.  It states, in pertinent part, that he/she will ensure collection of the debt is stopped until a final decision is made.

CONCLUSIONS:

1.  The Board notes the applicant’s contention that the collection of his debt should have been suspended and that he should now be reimbursed for the collected portion of the debt; and it finds these claims have merit. 

2.  By regulation, if a soldier decides to submit an application for remission/cancellation of indebtedness and properly notifies unit and finance officials, the debt collection process should be suspended until a final decision is made on the application.  

3. The evidence of record confirms that once the applicant was notified that he was indebted to the government in the amount of $1,085.00, due to an overpayment of FSA-R, he immediately began the process of preparing and submitting an application for remission/cancellation of indebtedness.  He also properly informed the local finance office of his intention to submit this application and his battalion commander also requested that the debt collection be suspended.  However, it is clear that this did not result in the timely suspension of the debt collection, as is required by regulation.  

4.  In view of the facts of this case and given the applicant’s request for remission/cancellation of indebtedness was ultimately approved by PERSCOM on the merits, for the uncollected portion of the debt, the Board concludes that it would be appropriate to grant the requested relief at this time. 

5.  In the opinion of the Board, the applicant’s record should be corrected to show that his application for remission/cancellation of indebtedness of $1,085.00, due to an overpayment of FSA-R, was approved in full, as if no amount of the debt had been collected prior to the approval.  In addition, the applicant should be reimbursed any amount of the debt that was erroneously collected prior to the date of the approval.  

RECOMMENDATION:

That all of the Department of the Army records related to this case be corrected by showing that the application of the individual concerned for remission/cancellation of indebtedness of $1,085.00, due to an overpayment of FSA-R, was approved for the full amount of the debt; and by reimbursing the applicant any portion of the total debt that was collected. 

BOARD VOTE:  

__FNE__  __ TSK  _  __LEM __  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		__Fred N. Eichorn  _
		   CHAIRPERSON

INDEX

CASE ID	AR2002072811	
SUFFIX		
RECON		
DATE BOARDED	2002/08/13	
TYPE OF DISCHARGE	N/A	
DATE OF DISCHARGE	N/A	
DISCHARGE AUTHORITY	N/A	
DISCHARGE REASON	N/A	
BOARD DECISION	GRANT	
REVIEW AUTHORITY		
ISSUES         1.  293	128.1000	
2.		
3.		
4.		
5.		
6.