On January 22, President Biden signed an executive order extending the VA’s Debt Management Center’s suspension of debt collection from veterans—affecting approximately 2 million veterans.
In April 2020, collection had been temporarily halted by the previous administration in an effort to relieve some of the financial hardships faced by veterans during the economic shutdown. However, the VA had announced late last year that all debt collections would resume on January 1, 2021, after affording veterans due process notification and a 90-day response period.
While the new executive order signed by Biden will afford continued relief to veterans with VA debts, there has been no indication of how long it will last.
“Veterans can sometimes face unexpected debt collection from the VA, some of which are due to overpayments that weren’t even their fault,” said Washington Headquarters Executive Director Randy Reese. “Extending this pause gives these veterans much-needed financial relief while navigating the trying times of COVID-19.”
If you have questions regarding your VA debt, please call The Debt Management Center at 1-800-827-0648.