VA Overpayment Accountability Act

To amend title 38, United States Code, to improve the due process accorded veterans with respect to recovery of overpayments made by the Department and other amounts owed by veterans to the United States, to improve the processing of veterans benefits by the Department of Veterans Affairs, and for other purposes. 1. Short title This Act may be cited as the VA Overpayment Accountability Act 2. Repair of credit (a) In general Chapter 53 5320A. Correction of erroneous information submitted to consumer reporting agencies (a) Correcting errors by the Department In any case in which the Secretary finds that the Department has submitted erroneous information to a consumer reporting agency about the indebtedness of any person who has been determined by the Secretary to be indebted to the United States by virtue of the participation of that person in a benefits program administered by the Secretary, the Secretary shall— (1) instruct the consumer reporting agency to remove such erroneous information from the consumer report of such person or take such other action as may be required to ensure that such erroneous information is not included in the report of such person; and (2) transmit to the consumer reporting agency such information as the consumer reporting agency may require to take such appropriate actions. (b) Correcting errors by debt collectors In any case in which the Secretary finds that a debt collector acting on behalf of the Department has submitted erroneous information to a consumer reporting agency about the indebtedness of any person who has been determined by the Secretary to be indebted to the United States by virtue of the participation of that person in a benefits program administered by the Secretary, the Secretary shall instruct the debt collector to request the consumer reporting agency remove such erroneous information from the consumer report of such person or take such other action as may be required to ensure such erroneous information is not included in the report of such person. (c) Notice Not later than 60 days after the date on which the Secretary issues an instruction under subsection (a)(1) or (b) with respect to a person, the Secretary shall notify the person that the Secretary issued such instruction. (d) Definitions In this section: (1) The terms consumer report consumer reporting agency 15 U.S.C. 1681a (2) The term debt collector 15 U.S.C. 1692a . (b) Clerical amendment The table of sections at the beginning of such chapter is amended by adding at the end the following new item: 5320A. Correction of erroneous information submitted to consumer reporting agencies. . (c) Effective date The amendments made by this section shall take effect on the date of the enactment of this Act and shall apply with respect to deductions made under section 5314 of such title, administrative costs under section 5315 of such title, and suits filed under section 5316 of such title on or after such date. 3. Improved processing of benefits by Department of Veterans Affairs The Secretary of Veterans Affairs shall improve the information technology of the Department of Veterans Affairs (including the eBenefits system or successor system) as may be necessary to achieve the following: (1) Notification of debts incurred The Secretary shall provide a notification to a person who— (A) is entitled to a payment from the Secretary under a benefits program administered by the Secretary; (B) incurs a debt to the United States under that benefits program; and (C) elects to receive such notifications. (2) Review of information regarding dependents A person entitled to a payment from the Secretary under a benefits program administered by the Secretary may review information relating to dependents of that person. (3) Tracking metrics The Secretary shall be able to track— (A) the number and amount of payments made by the Secretary to a person entitled to a payment from the Secretary under a benefits program administered by the Secretary who incurs a debt to the United States under such program; (B) the average debt to the United States incurred by a person described in subparagraph (A); (C) how frequently the Secretary approves and denies applications for relief under section 5302(a) of title 38, United States Code; and (D) such other metrics the Secretary determines appropriate. 4. Audit of erroneous payments by Veterans Benefits Administration; plan of correction (a) Audit Not later than 180 days after the date of the enactment of this Act, the Secretary of Veterans Affairs shall complete an audit to determine the following: (1) The frequency by which the Department of Veterans Affairs makes an error that results in a payment to a person by virtue of such person's participation in a benefits program administered by the Secretary that such person is not entitled to or in an amount that exceeds the amount to which the person is entitled. (2) Whether and to what degree vacant positions in the Veterans Benefits Administration affect such frequency. (b) Plan Not later than 30 days after the completion of the audit under subsection (a), the Secretary of Veterans Affairs shall submit to the Committees on Veterans' Affairs of the Senate and House of Representatives a plan and description of resources necessary to align information technology systems to ensure that errors described in subsection (a)(1) are not the result of communication or absence of communication between information technology systems.

Summary: VA Overpayment Accountability Act This bill prescribes procedures by which the Department of Veterans Affairs (VA) and debt collectors shall correct errors submitted to consumer reporting agencies about the indebtedness of certain veterans. Specifically, the bill requires these corrections for veterans who are indebted due to participation in a VA benefits program. The bill also requires the VA to update its information technology for the processing of VA benefits. Lastly, the bill requires the VA to self-audit to determine the frequency by which overpayments are made to individuals participating in VA benefits programs.