5-005.02 Retailer-Initiated Adjustments

475 NAC 5-005.02

Retailers have nine calendar days from the original date of a system error to identify the error. Retailers must submit the correction request to the issuer and request that an adjustment be processed against the cardholder's account.

1. The state must act upon all debit adjustments initiated by a retailer no later than 15 calendar days from the date the error occurred.

2. A notice must be sent to the household upon receipt of the notification and data pertaining to the requested adjustment from the EBT Claim Tracking System through the EBT contractor. The household's notice must provide specific detailed information about the error transaction and must advise the household of the right to a fair hearing.

3. No hold will be placed on the account balance for the amount of the adjustment.

4. If the household disputes the requested adjustment and requests a fair hearing within the 15 calendar day timeframe, no further action would be taken to adjust (debit) the household's account until the fair hearing decision is rendered.

a. If the fair hearing decision is rendered in the household's favor, no further action is needed.

b. If the decision is rendered in favor of the State Agency, collection activity must begin immediately against the current account balance. The contractor will reopen the claim and will attempt daily to make the adjustment. No debit adjustment will occur unless the account has sufficient balance to complete the total amount of the adjustment by the end of the next calendar month. Nebraska will not settle partial adjustments.

5. If the household does not request a fair hearing wihin 15 calendar days, the system will automatically begin the collection process upon expiration of that time period. If the account does not contain sufficient funds to cover the entire debit adjustment amount, the system will attempt daily to make the adjustment until the end of the next calendar month. No debit adjustment will occur unless the account contains sufficient balance for the total amount of the adjustment. Nebraska will not settle partial adjustments.

{6/9/03}