RECORD OF PROCEEDINGS

IN THE MATTER OF:	DOCKET NUMBER: BC-2020-00608

XXXXXXXXXXXXXX	COUNSEL: NONE	 

	HEARING REQUESTED: NO

APPLICANT’S REQUEST

He be refunded $1,215.28, plus interest for erroneous debt collection for overpayment of basic allowance for housing (BAH).  

APPLICANT’S CONTENTIONS

He has been denied earned pay and inconvenienced for over three years due to failures of the Defense Finance and Accounting Service (DFAS).  In 2016, he incurred a debt for (BAH).  He issued DFAS a check for the full amount.  However, the payment was not correctly applied and a debt was established.  The DFAS Debt and Claims Management Office refunded him $2,253.80 that they falsely took from his tax returns and banishment from his civilian pay; however, they could not pay him the $1,215.28 taken from his military pay. In a response to his Congressman, the DFAS-IN Deputy Director of Operations advised him to submit an application for Arrears of Pay (AOP) or request assistance from his finance office.  His ANG finance office could not provide assistance and he submitted his AOP request.  However, DFAS transferred him to various offices until they finally advised him to submit a BCMR application.  He has been actively trying to be paid what he is owed since the injustice happened.  

The applicant’s complete submission is at Exhibit A.

STATEMENT OF FACTS

The applicant is a retired Air National Guard (ANG) master sergeant (E-7).  

The applicant performed a period of active duty from 1 Oct 15 to 10 Feb 16.  He was honorably released from service with a narrative reason for separation of “Release Due to Demobilization.”  

On 2 Sep 16, the applicant was transferred to the Retired Reserve and placed on the Air Force Reserve Retired List.  

On 4 May 17, his finance office opened a Case Management System (CMS) file requesting he be reimbursed $1,215.28 collected from his pay. It stated he was no longer in the ANG but had not received payment.  On 17 May 17, DFAS advised his unit to provide any documentation showing the debt was paid or invalid.  On 1 Jun 17, DFAS-IN stated they had no records of receiving payment.  The check showed it was made payable to DFAS-CL and that the applicant should get proof from DFAS-CL that the funds were collected.  On 10 Oct 17, DFAS-IN stated they made no collections and would not be refunding anything.  

In a letter dated 23 Oct 17, DFAS-IN informed the applicant the debt was valid and they have no record of receiving the payment of $3,209.40 dated 10 Mar 16 for overpayment of BAH.  

On 18 Jan 18, his finance office requested DFAS cancel the applicant’s debt and provide payment of $1,215.28.  In Feb 16, he incurred a debt due to them paying him the incorrect BAH.  They immediately repaid him the correct BAH, with a debt balance of $3,209.40.  On 10 Mar 16, he wrote a check for the full amount of $3,209.40 to DFAS-IN.  The check was mistakenly mailed to DFAS-CL.  The check was stamped received, it was cashed and cleared his bank account on 2 May 16.  While waiting for the check to hit his pay record and the debt unsuspended, a total of $1,215.28 was collected from his pay.  It has been determined the government now owes him the $1,215.28, which he paid twice.  This was not the fault of the applicant.  

The applicant provides a copy of DFAS-IN Deputy Director of Operations letter to his Congressman dated 13 Aug 18, it states the applicant incurred a principal debt of $3,209.40.  Prior to his separation, the Air Force collected $1,215.28 from his pay and forwarded the remaining balance of $1,994.12 to their agency for collection.  Upon receipt of the ANG letter dated 18 Jan 18, they noted he was due a refund of $2,238.64 (to include $17.25 Treasury collection and $227.27 collection agency fees).  On 8 Aug 18, they requested his account be deleted from the credit bureau.  The letter stated he should file a claim for the AOP for the amount collected from his military pay.  DFAS-IN apologized for any inconvenience and advised he should call, e-mail or write to a DFAS customer service representative should he have further questions.  

He provides a copy of his DD Form 827, Application for Arrears in Pay, dated 16 Aug 18, requesting payment of $1,215.28 for erroneous collection for overpayment of BAH.  

For more information, see the excerpt of the applicant’s record at Exhibit B and the applicable authority.  

APPLICABLE AUTHORITY

AFI 36-3034, Remission of Indebtedness, In accordance with 10 U.S.C. § 9837, Settlement of Accounts: Remission or Cancellation of Indebtedness of Members, the Secretary of the Air Force (SecAF) is authorized to remit or cancel any part of the indebtedness of a person incurred while serving on Title 10 active duty if the SecAF considers such action to be in the best interest of the United States.  The applicant is not eligible to apply to the Air Force Debt Remissions Board since he is no longer in the ANG.  

FINDINGS AND CONCLUSION

1.  The application was not timely filed, but it is in the interest of justice to excuse the delay.

2.  The applicant exhausted all available non-judicial relief before applying to the Board.

3.  After reviewing all Exhibits, the Board concludes the applicant is the victim of an error or injustice. The Board finds the preponderance of the evidence substantiates the applicant’s contentions he is due a refund of $1,215.28 for erroneous debt collection.  Based on the evidence, it appears the applicant received an overpayment of BAH for $3,209.40 and immediately issued a check on 10 Mar 16 to DFAS for the full amount.  DFAS cashed the check, which cleared his account, but initiated a debt collection for the full amount.  While DFAS-IN refunded him a partial amount for the erroneous collection, they stated they were unable to refund him the $1,215.28 collected from his military pay while performing Title 10 active duty orders.  Although the applicant was advised to file an AOP application for the refund, it appears the applicant has not received a refund due to confusion with the check being issued and cashed by DFAS-CL, and not DFAS-IN.  The Board finds the administrative error was due to no fault of the applicant and he should be refunded $1,215.28, which he paid twice.  While the applicant requests he receive interest payment, this Board, which serves on behalf of the SecAF in the correction of military records, is without authority to provide financial compensation or award interest payments. Therefore, the Board recommends correcting the applicant’s records as indicated below.

RECOMMENDATION

The pertinent military records of the Department of the Air Force relating to the APPLICANT be corrected to show he be refunded $1,215.28 for erroneous collection of overpayment of basic allowance for housing (BAH).  

CERTIFICATION

The following quorum of the Board, as defined in Air Force Instruction (AFI) 36-2603, Air Force Board for Correction of Military Records (AFBCMR), paragraph 1.5, considered Docket Number BC-2020-00608 in Executive Session on 16 Dec 20:

 , Panel Chair
 , Panel Member
 , Panel Member

All members voted to correct the record.  The panel considered the following:

Exhibit A:	Application, DD Form 149, w/atchs, dated 13 Nov 19.
Exhibit B:	Documentary evidence, including relevant excerpts from official records.

Taken together with all Exhibits, this document constitutes the true and complete Record of Proceedings pertaining to Docket Number BC-2020-00608, as required by AFI 36-2603, paragraph 4.11.9.