What is "out of service debt"?

SGT Private RallyPoint Member — Wed, 23 Feb 2022 18:50:31 -0500

Hey all, I got a letter from DFAS about a "out of service" debt and need help understanding things about it. I called DFAS and didn't reach anyone.

Below I attached a picture of the letter they sent. The remarks section is vague and I don't understand it. Pointers on how to deal with such will be helpful. Thanks in advance. I ETS'd on 9/15/2021.

Response by MSG Private RallyPoint Member made Feb 23 at 2022 6:56 PM

MSG Private RallyPoint Member — Wed, 23 Feb 2022 18:56:24 -0500

When I googled this....what I found was apparently DFAS had suspended debt collections due to COVID and are now ramping the collections process back up. Best advice is to keep contacting DFAS until you get a hold of someone to confirm

Response by LTC Private RallyPoint Member made Feb 23 at 2022 8:15 PM

LTC Private RallyPoint Member — Wed, 23 Feb 2022 20:15:59 -0500

According to the text on the letter they are saying you were paid for service after your ETS date and they want that money back.

Response by CPT Private RallyPoint Member made Feb 23 at 2022 8:22 PM

CPT Private RallyPoint Member — Wed, 23 Feb 2022 20:22:58 -0500

It reads like they think they paid you for duties past your separation date.

Either they did or they didn't, and a detail review of your LES statement would be in order. I'd focus on all the balances and categories of said balances and how it was trued up when you were separated. So it would matter what the balances of the categories they say you are not entitled to at the date of separation.

I have a biased opinion that all the best financial and accounting professionals are in the Private Sector providing services for Corporate America to shield themselves from the IRS and the SEC and the semantics of publicly published audited financial statements and disclosures. Governments generally don't have such transparency requirements, and therefor don't pay up in regard to financial capabilities. So you get financial services capabilities on par with the DMV.

I do honestly wish you luck. Find an accounting friend if you can, and make an Excel Spreadsheet of at least 12 months of LES statements tying all the inflows and outflows in a nice clean chronological flow.

They data should be there to get town to every single penny.

Response by CPT Private RallyPoint Member made Feb 23 at 2022 9:42 PM

CPT Private RallyPoint Member — Wed, 23 Feb 2022 21:42:47 -0500

I had something like this in the past when I got out my second time. I got paid for leave that I took already. The system got the error and I owned half of a month's pay. I suspect it is something like that. I even got my congressmen involved. I ended up paying it. If they can show you owe a debt then you will have to pay it.

Response by SFC Private RallyPoint Member made Feb 24 at 2022 12:31 AM

SFC Private RallyPoint Member — Thu, 24 Feb 2022 00:31:15 -0500

It's a debt that you incur and are out of service. Notice the debt date is your ETS. DFAS conducts an audit of your complete payroll when you separate. If there is a debt owed, money you were paid that you weren't entitled, or money you were entitled that lacks sufficient documentation, you receive a debt for it. The debt will be owed to the US treasury and your federal tax returns will be held to pay for it.

You should have been informed at ETS during your out processing that you incurred that debt and why. A debt that large was probably recoupment for a bonus, or BAH overpayment, or failure to file a final travel voucher after receiving an advance for travel to home of record. But if the Finance office didn't inform you at separation, then you'll want to contact the finance office of the post you separated from.

Response by SFC Kelly Fuerhoff made Feb 24 at 2022 10:13 AM

SFC Kelly Fuerhoff — Thu, 24 Feb 2022 10:13:15 -0500

I'd do what it says and contact finance at the base you separated from and if they don't have the answer, call DFAS until you get to someone who knows.