DEMS will hold both the sponsor and the alien liable for incorrect information resulting in an overpayment claim, unless the sponsor can prove to be without fault or the sponsor had good cause. If the sponsor can show good cause for the incorrect information, the claim will be filed against the alien or the alien's household. If the sponsor is found to be at fault, the claim will be filed against the party most likely to repay. If that cannot be determined, the worker will file a claim against both the sponsor and the alien. If fraud is suspected, the case will be referred to the Fraud Unit for investigation.

Sponsors against whom a claim has been filed are entitled to a Fair Hearing. See FSC 16310 for instructions on requesting a Fair Hearing.