DFAS Resumes Debt Collection: What You Need to Know

DFAS Resumes Debt Collection: What You Need to Know
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Military retirees and others who owe money to DoD no longer benefit from a COVID-related pause in some collection efforts, the Defense Finance and Accounting Service (DFAS) announced recently.


DFAS paused notifications and collections of new, out-of-service debts in March 2020. It also paused referrals of existing debts to other agencies (including private collection agencies) for recoupment. Both of those delays ended Oct. 1.


Those who owe money to DoD – often to correct overpayments, or related to education or travel costs – and had their debt on a temporary hold will receive notification via mail from DFAS explaining the status change. Debts covered under the pause did not accrue interest or additional penalties/fees during the hold.


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Individuals who wish to challenge the debt can do so through a variety of agencies, but generally not through DFAS itself. The agency offers suggestions and resources for various types of military debts, many of which, if issued in error, require corrections at the service level.


DFAS offers lump-sum and other repayment plan options. Debtors may also file a Reduced Installment Payment Request if facing financial hardship.


More information on debts covered by the COVID-related pause can be found on this DFAS frequently asked questions page. Get more information – including phone numbers, mailing addresses, and office hours – at this link.


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About the Author

Kevin Lilley
Kevin Lilley

Lilley serves as MOAA's digital content manager. His duties include producing, editing, and managing content for a variety of platforms, with a concentration on The MOAA Newsletter and MOAA.org. Follow him on Twitter: @KRLilley