BOARD DATE:	  6 September 2012

		DOCKET NUMBER:  AR20120009454 


THE BOARD CONSIDERED THE FOLLOWING EVIDENCE:

1.  Application for correction of military records (with supporting documents provided, if any).

2.  Military Personnel Records and advisory opinions (if any).


THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:

1.  The applicant requests cancellation of his $8,743.16 indebtedness.  

2.  The applicant states he was given proper authorization to move off post and collect Overseas Housing Allowance (OHA).  He claims the wrong amount was given by the Kaiserslautern housing office.  He states the Kaiserslautern housing Chief told him it was the correct amount when he questioned it.  He states after notification and research, he found he qualified for remission/cancellation of the debt which he submitted to the local finance office in Kaiserslautern, Germany while he was deployed to Afghanistan in July 2011.  He claims the cancellation or remission of debt packet was mishandled by the finance office and after he contacted the Inspector General (IG) and his Congressman, who assisted in getting things done.  He believes that pressured the finance office as well but without the results he believes are justified.  

3.  The applicant provides the documents identified in item 9 (In support of this application, I submit as evidence the following attached documents) of his DD Form 149 (Application for Correction of Military Record) in support of his request.  

CONSIDERATION OF EVIDENCE:

1.  The applicant’s military records show that as of the date of his application to the Board, he was still serving as a sergeant (SGT) on active duty in Germany.  



2.  On 18 January 2011, U.S. Army Installation Management Command, United States Army Garrison, Baumholder, Germany, Orders BH-006-0543, directed the applicant's deployment to Afghanistan in a Temporary Change of Station (TCS) status for a period not to exceed 365 days, effective 26 February 2011. 

3.  On 26 July 2011, the applicant was notified of his indebtedness due to overpayment of OHA in a memorandum from the Director, 266th Financial Management Center, Kaiserslautern, Germany and was advised of his options which included applying for remission/waiver of debt.   

4.  On 7 June 2011, the applicant submitted an Application for Remission or Cancellation of Indebtedness (DA Form 3508-R), which was verified by his unit commander on 24 June 2011.   The basis for the applicant's request was injustice, he did not claim hardship and did not provide any documentary evidence outlining financial requirements or commitments to evaluate financial hardship to him and/or his family.  The applicant's unit commander  and the battalion commander submitted supporting memoranda indicating the applicant was not at fault for the debt and that collection would result in a financial hardship on him and his family.  

5.  On 27 February 2012, the Chief, Special Actions Branch, U.S. Army Human Resources Command (AHRC) responded to the applicant’s cancellation or remission of indebtedness application.  He stated that the application had been reviewed in accordance with the applicable regulation and was disapproved.  It further indicated the review found no grounds existed to remit or cancel the debt based on hardship or injustice.  

6.  In connection with the processing of this case, an advisory opinion was obtained from the Chief, Compensation and Entitlements Division, Office of the Deputy Chief of Staff (ODCS), G-1.  This official states after careful review of the applicant's case, they opine that the applicant is authorized OHA at the with dependent rate based on his duty station, Baumholder, Germany.  The ODCS, G-1 concurred with the 27 February 2012 determination that this is a valid debt and that office does not support granting administrative relief.  

7.  On 16 July 2012, the applicant was provided a copy of the DCS, G-1 advisory opinion in order to have the opportunity to reply to or rebut its contents.  To date, he has failed to respond.  

8.  Army Regulation 600-4 (Remission or Cancellation of Indebtedness) 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.  Paragraph 1-12 contains guidance on determining injustice or hardship and states these determination will be based on the following factors:
* The Soldier's monthly income and expenses
* The Soldier's contribution to the indebtedness to the U.S. Army by not having the situation corrected
* Additional income or assets (for example, spouse's salary, savings account, and bonds)

9.  The regulation further states the application must contain evidence regarding the following additional factors which are considered in determining injustice:

* The applicant did not know, and could not have known, of the error
* The applicant inquired of a proper authority and was told that the payment was correct
* Repayment will cause hardship because of excessive monthly expenses due to living in high cost area; living apart from family members; number and age of family members; medical and dental bills that cannot be reimbursed; other unusual expenses

10.  The regulation stipulates that expenses caused by living standards that are too high or by mishandling of funds are not a basis for a hardship case.

DISCUSSION AND CONCLUSIONS:

1.  The applicant’s request for cancellation or remission of the debt he incurred as a result of overpayment of OHA has been carefully considered.  However, the evidence provided with the application is not sufficient to overcome the AHRC determination that there is no injustice or hardship related to the applicant's debt.  

2.  The evidence of record confirms the applicant is authorized OHA payment based on his duty station of Baumholder and was erroneously receiving OHA based on the area of his residence at the Kaiserslautern rate.  The applicant's residence was established at his own request as an exception to policy and there is no evidence suggesting he tried to resolve this matter prior to being informed of his indebtedness.  
3.  Further, the applicant fails to provide sufficient convincing evidence that repayment of the debt in question would present an undue financial burden on him and/or his family.  As a result, there is an insufficient equity basis to support remission or cancellation of his debt.  


BOARD VOTE:

________  ________  ________  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 that the overall merits of this case are insufficient as a basis for correction of the records of the individual concerned.



      _______ _  X _______   ___
               CHAIRPERSON
      
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.

ABCMR Record of Proceedings (cont)                                         AR20120009454



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ABCMR Record of Proceedings (cont)                                         AR20120009454



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