RECORD OF PROCEEDINGS
AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS

      IN THE MATTER OF:		DOCKET NUMBER:  BC-2009-00862
		COUNSEL:  NONE
			  		HEARING DESIRED:  NO

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APPLICANT REQUESTS THAT:

His debt of $27,693.87 be forgiven and removed.

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APPLICANT CONTENDS THAT:

He received an advancement of pay for nearly two years after his discharge.  He assumed the payments were his until he received a letter two years later stating he owed the money with a 4% interest rate.  He later learned there were many others in the same situation.  Because it was the military’s mistake the debt should be forgiven and removed.  There were other errors made in his record.  His parents made most of the payments as he has not been able to.  His parents are no longer able to make the payments and he has been laid off from his job making it difficult to pay the indebtedness. 

In support of his request, applicant submits a personal statement and copies of correspondence from the Defense Finance and Accounting Service.

The applicant’s complete submission, with attachments, is at Exhibit A.

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STATEMENT OF FACTS:

Applicant enlisted in the Regular Air Force on 8 June 2004 in the grade of airman basic.  

Effective 23 November 2004, he was discharged in the grade of airman basic and received an entry level separation with an uncharacterized character of service.

He served approximately 5 months and 16 days on active duty.

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AIR FORCE EVALUATION:

DFAS-JFEAA/IN recommends denial.  DFAS-JFEAA/IN states a thorough audit of the applicant's Master Military Pay Account (MMPA) reveals he was not properly separated from the Air Force on 23 November 2004, and continued to be paid.  Erroneous payments continued to be sent to the applicant's bank by direct deposit from November 2004 through September 2006.  Further research indicates his MMPA finally closed in 2007 with a discharge date of 23 November 2004 as an E-3.  This resulted in a government indebtedness in the amount of $27,663.27.  A case management system (CMS) request was opened 13 October 2006 informing the Defense Debt Management Office (DDMS) an E503 transaction was never processed to report the separation and a ST04 transaction was processed to stop further payment effective 3 October 2006.  The Claims Branch provided a comprehensive audit of his pay records to determine if the $27,663.27 debt was valid.  DFAS-IN Form 0-641, Statement of Military Pay Account, verifies the applicant was due pay and allowances for the period 1 November 2004 through 23 November 2004. The balance of the debt due to the government is $25,919.45.  The Claims Branch states all the reviews conducted on behalf of the applicant dictate that he should have taken aggressive action in either retaining those funds erroneously paid to him or contacting his previous base to inform them of the problems that were occurring.  The Claims Branch notes the Personnel and Financial Communities did not provide timely and accurate measures to resolve the separation process to alleviate the overpayments that created the indebtedness. 

The complete DFAS-JFEAA/IN evaluation, with attachment, is at Exhibit B.

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APPLICANT'S REVIEW OF AIR FORCE EVALUATION:

A copy of the Air Force evaluation was forwarded to the applicant on 15 May 2009 for review and comment within 30 days.  As of this date, this office has received no response (Exhibit C).

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THE BOARD CONCLUDES THAT:

1.  The applicant has exhausted all remedies provided by existing law or regulations.

2.  The application was timely filed.

3.  Sufficient relevant evidence has been presented to demonstrate the existence of an error or injustice warranting partial correction to his records.  After considering all the facts and circumstances of this case, we agree with DFAS-JFEAA/IN’s assessment wherein the Personnel and Financial Communities did not take timely appropriate actions to report the separation to prevent the overpayments.  Therefore, in the interest of justice, we believe the interest, penalties and fees associated with his debt in the amount of $2,285.67 should be waived.  Therefore, we recommend his records be corrected to the extent indicated below.  Notwithstanding the above, the applicant contends it was the Air Force’s mistake he was overpaid and believes the debt should be removed in its entirety; however, we do not find his contentions sufficiently persuasive to override the rationale provided by DFAS-JFEAA/IN.  Therefore, we adopt the rationale expressed as the basis for our conclusion that the applicant has not been the victim of an error or injustice.  Absent persuasive evidence that he was denied rights to which he was entitled, we find no compelling basis to recommend granting the requested relief.

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THE BOARD RECOMMENDS THAT:

The pertinent military records of the Department of the Air Force relating to APPLICANT, be corrected to show that he applied for a remission of his indebtedness of $27,663.27, incurred as a result of the overpayment of basic pay and allowances, and his request was partially approved in the amount of $ $2,285.67 by competent authority.

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The following members of the Board considered Docket Number BC-2009-00862 in Executive Session on 25 June 2009, under the provisions of AFI 36-2603:

		, Panel Chair
		, Member
		, Member

The following documentary evidence was considered:

	Exhibit A.  DD Form 149, dated 4 March 2009, w/atchs. 
	Exhibit B.  Letter, DFAS-JFEAA/IN, not dated, w/atch.
	Exhibit C.  Letter, SAF/MRBR, dated 15 May 2009.




                                   
                                   Panel Chair


AFBCMR 2009-00862




MEMORANDUM FOR THE CHIEF OF STAFF

	Having received and considered the recommendation of the Air Force Board for Correction of Military Records and under the authority of Section 1552, Title 10, United States Code (70A Stat 116), it is directed that:

	The pertinent military records of the Department of the Air Force relating to APPLICANT be corrected to show that he applied for a remission of his indebtedness of $27,663.27, incurred as a result of the overpayment of basic pay and allowances, and his request was partially approved in the amount of $ $2,285.67 by competent authority.




                                                                            Director
                                                                            Air Force Review Boards Agency


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