After two letters are sent and no response, the uncollected debt is referred to DFAS for action when the amount reaches what threshold?

After two letters are sent and no response, the uncollected debt is referred to DFAS for action when the amount reaches what threshold?

• A. $200
• B. $600
• C. $1000
• D. $400

Answer: (B)

The question tests the point at which uncollected debts are escalated to DFAS for formal collection. After two letters and no response, the debt is referred to DFAS when the amount meets or exceeds six hundred dollars. This threshold is used because it balances the cost and effort of DFAS’s formal collection actions with the size of the debt, ensuring that only debts of a material amount are handled at the central DFAS level, while smaller balances can be pursued or written off locally. In short, six hundred dollars is the established trigger for DFAS action after two nonresponsive notices.

The question tests the point at which uncollected debts are escalated to DFAS for formal collection. After two letters and no response, the debt is referred to DFAS when the amount meets or exceeds six hundred dollars. This threshold is used because it balances the cost and effort of DFAS’s formal collection actions with the size of the debt, ensuring that only debts of a material amount are handled at the central DFAS level, while smaller balances can be pursued or written off locally. In short, six hundred dollars is the established trigger for DFAS action after two nonresponsive notices.