| Mr. Carl W. S. Chun | Director | |
| Mr. Joseph A. Adriance | Analyst |
| Mr. Fred N. Eichorn | Chairperson | ||
| Mr. James E. Anderholm | Member | ||
| Ms. Charmane Collins | Member |
2. The applicant requests, in effect, that his debt to the government for overpayment of Basic Allowance for Quarters (BAQ) be remitted or cancelled, and that he be reimbursed the collected debt.
3. The applicant states, in effect, that he submitted an Application for Remission or Cancellation of Indebtedness (DA Form 3508-R) in plenty of time for it to be acted upon prior to his retirement. As a result of the failure of local finance officials to submit the application in a timely manner, the application was never considered by the Total Army Personnel Command (PERSCOM) Special Actions Branch. In support of his application, he provides a copy of his DA Form 3508-R and supporting statements from local personnel and finance officials.
4. The applicant’s military records show that he continuously served on active duty for 23 years and 28 days until his release from active duty (REFRAD) for the purpose of retirement on 31 January 2002.
5. Shortly before his retirement, the applicant was notified that he was indebted to the government in the amount of $1315.00 due to a BAQ overpayment. On
29 October 2001, he submitted a DA Form 3508-R packet requesting cancellation or remission of the indebtedness. Included in this packet was a statement from a unit personnel official which confirmed that the applicant had reported his marital status change to unit personnel and finance officials in a timely manner.
6. On 31 October 2001, the applicant’s unit commander recommended approval of the applicant’s request for remission or cancellation of his debt and forwarded the packet to the local finance officer.
7. On 6 February 2002, the PERSCOM Chief, Special Actions Branch, responded to the applicant’s request for cancellation or remission of his debt in a memorandum addressed to the 126th Finance Battalion, Fort Bragg, North Carolina. He indicated that the applicant’s request was received by PERSCOM on 31 January 2002, and that by regulation, indebtedness will not be remitted or cancelled if the soldier is no longer on active duty, and they had been informed that the applicant retired on 31 January 2002. He further advised that if the applicant believed an injustice occurred, he could apply to this Board for relief.
8. On 30 May 2002, the Chief, Military Pay, 126th Finance Battalion, Fort Bragg, North Carolina, provided a memorandum for record that confirms that the applicant’s remission or cancellation of debt packet was forwarded to Department of the Army after his retirement, and that this late submission was through no fault of the applicant.
9. Army Regulation 600-4 provides instructions for submitting and processing applications for remission or cancellation of indebtedness to the United States Army. Applications must be based on injustice, hardship, or both. This includes debts caused by errors in pay to or on behalf of a soldier. Chapter 3 provides the administrative procedures for submitting an application for remission/cancellation of indebtedness. Paragraph 3-4 outlines the responsibilities of the Finance and Accounting Officer in the application process. It states, in pertinent part, that he/she will ensure collection of the debt is stopped until a final decision is made.
CONCLUSIONS:
1. The Board notes the applicant’s contention that the debt he incurred was unjust because he had submitted his marital status change in a timely manner, and had submitted his application for remission or cancellation of the debt in sufficient time for it to be processed prior to his retirement, and the Board finds these claims have merit.
2. By regulation, a soldier’s debt may be remitted or cancelled based on injustice, hardship, or both. Further, if a soldier decides to submit an application for remission/cancellation of indebtedness and properly notifies unit and finance officials, the debt collection process should be suspended until a final decision is made on the application.
3. The evidence of record confirms that the applicant notified local personnel and finance officials of the change in his marital status in a timely manner. Further, once he was notified of the indebtedness, he completed and submitted an application for cancellation or remission of indebtedness that was verified by his unit commander well before his retirement date.
4. In view of the facts of this case, the Board finds it likely that had the applicant’s request for remission or cancellation of indebtedness been submitted to PERSCOM in a timely manner, it would have been approved on the merits. Therefore, the Board concludes that it would be appropriate to grant the requested relief at this time.
5. In the opinion of the Board, the applicant’s record should be corrected to show that his application for remission or cancellation of indebtedness of $1,315.00, due to an overpayment of BAQ, was approved in full on 1 December 2001, prior to his retirement date. As a result, the Board also concludes that it would be appropriate to reimbursed the applicant the full amount of the debt that was erroneously collected.
6. 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 by showing that the application of the individual concerned for remission or cancellation of indebtedness of $1,315.00, due to an overpayment of BAQ, was approved for the full amount of the debt; and by reimbursing the applicant any portion of the debt that was collected.
BOARD VOTE:
_ _FNE _ __JEA___ ___CC__ GRANT AS STATED IN RECOMMENDATION
________ ________ ________ GRANT FORMAL HEARING
________ ________ ________ DENY APPLICATION
___Fred N. Eichorn _
CHAIRPERSON
| CASE ID | AR2002078402 |
| SUFFIX | |
| RECON | |
| DATE BOARDED | 2002/12/03 |
| TYPE OF DISCHARGE | HD |
| DATE OF DISCHARGE | 2002/01/31 |
| DISCHARGE AUTHORITY | AR 635-200 |
| DISCHARGE REASON | Retirement |
| BOARD DECISION | GRANT |
| REVIEW AUTHORITY | |
| ISSUES 1. 293 | 128.1000 |
| 2. | |
| 3. | |
| 4. | |
| 5. | |
| 6. |
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