Can DFAS recoup overpaid BAH?

SGT Private RallyPoint Member — Wed, 20 Jun 2018 12:39:48 -0400

So I got out of the military a little while back and I’m wondering if DFAS can charge over payment of BAH. I was married and went through a divorce and I was living off post at the time and still receiving BAH due to a current lease I could not get out. My chain of command was tracking this situation and never put up anything to change my pay because they said as soon as my lease was up BAH would stop however since it’s an active lease , I’d still receive BAH. I continued to receive this BAH and I ets about 6 months later . About another 6 months I got a letter from DFAS saying I owed just about 6,800 dollars in overpayment of BAH. How can this be correct ? I tried sending it my old lease to DFAS and I asked someone from Finance who didn’t provide too many answers , but said to look in “DoD 7000.14 - R“. Can someone please help me or give me some guidance . Thank you!

Response by MAJ Ken Landgren made Jun 20 at 2018 12:49 PM

MAJ Ken Landgren — Wed, 20 Jun 2018 12:49:30 -0400

Did you at any time stay in the barracks?

Response by SGT Private RallyPoint Member made Jun 20 at 2018 12:53 PM

SGT Private RallyPoint Member — Wed, 20 Jun 2018 12:53:52 -0400

In summary, anytime you have a life change that has an effect on your pay, i.e. (Divorce, Marriage, etc) that's something that you must follow up with your Local Finance Office to update asap so you don't inquire a big debt. Upon getting divorced, you were supposed to update your BAH from the "with" to "without" dependent rate since you were single. Since this wasn't done, you owed the Army the difference × 6 months. There's no way around that, and the regulation backs that up.

Response by Sgt Private RallyPoint Member made Jun 20 at 2018 1:07 PM

Sgt Private RallyPoint Member — Wed, 20 Jun 2018 13:07:48 -0400

If nothing else your BAH should have went from dependent rate to single rate if you were still living off base. If you moved on base after the divorce then yes you got over paid. Regardless of when the lease ended, your entitlements are based on where you are physically staying.

Response by MAJ Ken Landgren made Jun 20 at 2018 1:49 PM

MAJ Ken Landgren — Wed, 20 Jun 2018 13:49:26 -0400

E-5 BAH RATES:

$711.30 BAH WITHOUT DEPENDENTS
$948.30 BAH WITH DEPENDENTS
$267.00 DIFFERENTIAL

It looks like they are trying to collect BAH WITH DEPENDENTS for six months.

Response by SFC Private RallyPoint Member made Jun 20 at 2018 2:12 PM

SFC Private RallyPoint Member — Wed, 20 Jun 2018 14:12:07 -0400

Did you update your DA 5960 to change your marital status from Married to Divorce?

Response by SFC Private RallyPoint Member made Jun 20 at 2018 2:20 PM

SFC Private RallyPoint Member — Wed, 20 Jun 2018 14:20:24 -0400

It's not up to S1 to change your finance situation. It's up to you to go to finance and change it. I got married 2 weeks before I had my daughter. I don't know why I didn't go to finance then but I went when I was on maternity leave to update it for my daughter. The clerk said I could get backpay from the date I got married. So I did that. I do need to go to finance and change my LES just so my dependent status doesn't reflect spouse since I got divorced but I have a dependent.

Just because you had a lease does not mean you got to keep your BAH. Once your divorce was finalized you should have gone to finance and updated everything. So yes you owe them money because you had no dependent for that time.

Response by SGM Private RallyPoint Member made Jun 20 at 2018 3:03 PM

SGM Private RallyPoint Member — Wed, 20 Jun 2018 15:03:29 -0400

Here is a link to the FAQ for BAH from the Defense Travel Management Office. All you need to know about BAH is here. http://www.defensetravel.dod.mil/site/faqbah.cfm

Basic Allowance for Housing (BAH) - Frequently Asked Questions

A member assigned to permanent duty within the 50 United States, who is not furnished Gov't housing, is eligible for BAH, based on the member's rank, dependency status, and permanent duty station zip code. A member stationed overseas (except in Hawaii and Alaska), including U.S. territories and possessions, who is not furnished Gov't housing, is eligible for an Overseas Housing Allowance (OHA) based on the member's dependency status. If a...

Response by CW3 Kevin Storm made Jun 20 at 2018 3:33 PM

CW3 Kevin Storm — Wed, 20 Jun 2018 15:33:28 -0400

Did you have children, and did you pay child support? If so show documentation to this effect. The BAH with dependents should be allowed because of the court ordered CS.

Response by CSM Darieus ZaGara made Jun 20 at 2018 4:31 PM

CSM Darieus ZaGara — Wed, 20 Jun 2018 16:31:44 -0400

You would or should have applied for an exception. Your commander has the authority to work through this. See your 1SG. They may ask to get you out of the lease, that is also an option. Ignorance is never bliss. Not to mention you are likely going to have some sort of restitution to your ex. Thank you for your service.

Response by LCpl Ferdinand Hughes made Jun 21 at 2018 10:13 AM

LCpl Ferdinand Hughes — Thu, 21 Jun 2018 10:13:09 -0400

In a nutshell, yes they can

Response by CPT Private RallyPoint Member made Mar 15 at 2019 10:21 AM

CPT Private RallyPoint Member — Fri, 15 Mar 2019 10:21:20 -0400

Yes. Military government can always get overpayments back. Once you have a change in status (divorce, marriage, child) your entitlements change as far as I know your lease agreements don't affect that. Look at that reg and it might be worth talking to an attorney but if the reg says you loose it..you do.

Response by MSG Gary Eckert made Jun 19 at 2019 11:25 AM

MSG Gary Eckert — Wed, 19 Jun 2019 11:25:09 -0400

In your notification, you should have told about remission or cancellation of debt. If they didn't get a hold of a copy of AR 600-4. BAH over payment is something that could potentially qualify. You will need to prove that the debt is unjust or creates an undue hardship or both. The situation you described may or may not qualify as an injustice although if you can get someone in your Chain of Command to say they were "tracking the situation and elected not to change you BAH until after your lease expired" you may have a case. Hardship deals with your ability to repay the debt. Your S1 should be able to assist you with starting the process and completing the proper form.