PROCEEDINGS

	IN THE CASE OF: 

	BOARD DATE:  7 September 2000
	DOCKET NUMBER:  AR1999032794

	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. Paul A. Petty		Analyst	

  The following members, a quorum, were present:

	Ms. Celia L. Adolphi		Chairperson	
	Mr. Thomas B. Redfern		Member	
	Mr. Walter T. Morrison		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 repaid $1,616.22.

3.  The applicant states, in effect, that an injustice occurred in the collection of $1,616.22, part of a debt that was cancelled by the U. S. Total Army Personnel Center (PERSCOM).

4.  The applicant’s military records show that he, now a Staff Sergeant in the Regular Army, was a Sergeant when on 2 January 1992, he and his wife, who was also a soldier, were divorced.  His then ex-wife retained custody of their child and moved into government quarters.  The applicant remarried his ex-wife on 
3 September 1992 and then divorced her again on 13 April 1993.  His ex-wife then moved out of government quarters.  Due to these marriage status changes, a change of station, and a change in the rules for calculating Basic Allowance for Quarters (BAQ), unintentional finance errors were made in paying the applicant BAQ.  During the period 3 January 1992 to 21 June 1995, he was overpaid $7,480.14 for BAQ.  This finance error and debt was identified in 1995.  He began making payments on the debt in November 1995.  However, an application for remission or cancellation of the indebtedness was made with the support of the applicant’s command and the debt collection was suspended pending the outcome of the application.

5.  On 31 January 1996, the Special Actions Office (SAO) of PERSCOM issued a letter approving the application for remission or cancellation of the debt.  Of the $7,480.14 debt, $5,864.92 that had not yet been paid by the applicant was cancelled.  However, the other part of the debt that the applicant had already paid, $1,616.22, could not be remitted according to Army Regulation 600-4 (Remission and Cancellation of Indebtedness for Enlisted Members).  The regulation states that any amount of a debt repaid or collected before the immediate commander signs the DA Form 3508-R (Application for Remission or Cancellation of Indebtedness) cannot be remitted.  The PERSCOM letter stated that, “Should (the applicant) feel an injustice has occurred surrounding the collected portion of the debt, application may be made to the Army Board for Correction of Military Records (for relief).”

CONCLUSIONS:

1.  The SAO of PERSCOM found good and just cause to cancel and remit the debt created by overpayment of BAQ to the applicant through no fault of the applicant.  However, by regulation, PERSCOM could only cancel the portion of the debt that had not been repaid or collected.  If PERSCOM found good and just cause to cancel and remit the debt, then as a matter of justice and fairness and as an exception to policy, the collected part of the debt, $1,616.22, should be refunded to the applicant.

2.  In view of the foregoing, the applicant’s records should be corrected as recommended below.

RECOMMENDATION:

That all of the Department of the Army records related to this case be corrected for the individual concerned, as an exception to policy, by refunding and paying back the amount of the debt collected, $1,616.22.

BOARD VOTE:  

__ca____  __tr___  ___wm___  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		___Celia L. Adolphi____
		        CHAIRPERSON

INDEX

CASE ID	AR1999032794	
SUFFIX		
RECON		
DATE BOARDED	200000907	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	GRANT	
REVIEW AUTHORITY		
ISSUES         1.128.09	Readjustment Pay	
2.		
3.		
4.		
5.		
6.