VA Overpayment Accountability Act
Bill: H.R.5931 | Sponsor: Rep. Kim, Andy (D-NJ)
Policy area: Armed Forces and National Security

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.

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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``VA Overpayment Accountability Act''.

SEC. 2. REPAIR OF CREDIT.

    (a) In General.--Chapter 53 of title 38, United States Code, is 
amended by adding at the end the following new section:
``Sec. 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' and `consumer reporting 
        agency' have the meanings given such terms in section 603 of 
        the Fair Credit Reporting Act (15 U.S.C. 1681a).
            ``(2) The term `debt collector' has the meaning given such 
        term in section 803 of the Fair Debt Collection Practices Act 
        (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.

SEC. 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.

SEC. 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.
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