ARMY BOARD FOR CORRECTION OF MILITARY RECORDS

RECORD OF PROCEEDINGS


	IN THE CASE OF:  

	BOARD DATE:  20 June 2019

	DOCKET NUMBER:  AR20170000373


APPLICANT REQUESTS: correction of the total amount of debt he owes to the Defense Finance and Accounting Service (DFAS).  He also requests a personal hearing before the Board.

APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD: 

* DD Form 149 (Application for Correction of Military Record)
* DD Form 214 (Certificate of Release or Discharge from Active Duty)
* DFAS Notice, dated 20 October 2016
* DFAS Statement of Account 
* Counseling Statements 

FACTS:

1.  The applicant states after careful analysis and basic math, he has concluded that the total amount of debt he owes is not $8,481.44.  This amount is double what he owes. 

2.  Review of the applicant's service records shows: 

	a.  He enlisted in the Regular Army on 2 July 2013.  He was promoted to private first class (PFC)/E-3 on 1 September 2014.  

	b.  He was counseled on 9 June 2015 due to receiving a speeding ticket at Fort Riley, KS, and on 29 July 2015 for lying to a noncommissioned officer.  

	c.  He was reduced to private/E-1 on 30 December 2015.  

	d.  He was also counseled on 6 January 2016 due to underage drinking, interfering with law enforcement officer, dispute/disturbance, lying to military police, and failure to report.  He was informed that separation action would be initiated against him. 

	e.  He was discharged from active duty in the rank/grade of PVT/E-1 on 5 May 2016 due to misconduct and received a general discharge. 

	f.  On 20 October 2016, DFAS sent him a final notice regarding his debt.  The DFAS letter indicated his debt had been referred to the DFAS Debt Collection Management Office for collection.  He had been previously notified you of a debt owed to DOD and have not received a payment.  This was his final notice on his delinquent debt.  If the debt is not paid, DFAS is required to report his delinquent debt to the credit bureaus.  Delinquent debts are also transferred to the Department of Treasury for further collection.  Treasury may refer his debt to private collection agencies or may collect his debt via offset from his Federal income tax refunds and other Federal benefit payments, or garnish his wages.  As required by law (Title 31, U.S. Code, section 3717), the debt is now accruing interest and administrative charges to the unpaid balance.  Additionally, penalty charges may apply.  With its letter, DFAS also enclosed an Account Statement, dated 19 September 2016 listing the total debt as $8,474.35. 

	g.  A second Account Statement, dated 20 October 2016, shows the previous debt was $8,474.35 and that interest charges of $7.09 were added for a total of $8,481.44. 

	h. On 2 February 2019, DFAS advised that the original amount is $8,474.35.  There were interests, penalties, and administrative charges of $31.50 making the total $8,505.85 (in February 2019).  The debt is due to adjustment of his pay and allowances after he was demoted from E-3 to E-1 on 1 June 2015 but continued to collect E-3 pay until May 2016.  

3.  By regulation (AR 15-185), applicants do not have a right to a hearing before the ABCMR.  The Director or the ABCMR may grant a formal hearing whenever justice requires. 

4.  By law and regulation, the Defense Finance and Accounting Service (DFAS) is the Department of Defense (DOD) agency responsible for collection of individual debts owed to the United States Government by former DOD employees, service members, or other debtors.  

BOARD DISCUSSION:

The applicant's request for a personal appearance hearing was carefully considered.  In this case, the evidence of record was sufficient to render a fair and equitable decision.  As a result, a personal appearance hearing is not necessary to serve the interest of equity and justice in this case.

After reviewing the application and all supporting documents, the Board found the relief was not warranted.  The applicant’s contentions were carefully considered.  He received a debt as a result of being paid for a rank in which he did not hold.  The debt reached a point in which the debt started to accrue interest.  The applicant did not provide evidence to show the debt was in error.  The Board agreed there was no error or injustice in this case.


BOARD VOTE:

Mbr 1	Mbr 2	Mbr 3

:	:	:	GRANT FULL RELIEF

:	:	:	GRANT PARTIAL RELIEF

:	:	:	GRANT FORMAL HEARING

X	X	X	DENY APPLICATION


BOARD DETERMINATION/RECOMMENDATION:

The evidence presented does not demonstrate the existence of a probable error or injustice.  Therefore, the Board determined the overall merits of this case are insufficient as a basis for correction of the records of the individual concerned.
	 
I certify that herein is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in this case.



REFERENCES:

1.  Army Regulation 15-185 (ABCMR) states ABCMR members will review all applications that are properly before them to determine the existence of an error or injustice.  The ABCMR will decide cases on the evidence of record.  It is not an investigative body. The ABCMR may, in its discretion, hold a hearing.  Applicants do not have a right to a hearing before the ABCMR.  The Director or the ABCMR may grant a formal hearing whenever justice requires. 

2.  Army Regulation 37-104-4 (Financial Administration – Military Pay and Allowances Policy) prescribes policies for entitlements and collections of pay and allowance for Soldiers.  It is used in conjunction with the DOD Financial Management Regulation (DODFMR), Volume 7, Part A and DOD Number 7000.14-R (DODFMR).  When the Secretary of Defense or any designee determines a Soldier is indebted to the U.S. Government, the amount of the debt may be collected from the Soldier’s pay.  The Secretary of Defense may waive U.S. claims for erroneous payment of pay and allowance, including travel and transportation, totaling less than $1,500.00 or deny waivers of any amount.  Waiver requests exceeding $1,500.00 will be referred to the Comptroller General of the U.S. together with the recommendation of the Director, DFAS.  

3.  A Principal Deputy of the Under Secretary of Defense memorandum delegates to the Secretary concerned a determination on a case-by-case basis that certain repayment will not be required, if it is determined that such repayment would be contrary to a personnel policy or management objectives, against equity and good conscience, or contrary to the best interest of the United States.  

//NOTHING FOLLOWS//

ABCMR Record of Proceedings (cont)	 AR20170000373


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