Loan Processed Twice

[Guest jolson]

We recently took over as the TPA for a plan whose service provider processed a loan request twice within two days back in 2008. The participant’s account balance was $16,000 and each loan withdrawal was for $5,000. The participant evidently received both ACH transfers but did not say anything at the time. The first $5,000 withdrawal meets all of the requirements for an acceptable loan. The loan was documented and it did not exceed the maximum amount available for a loan. He has been making payments on one $5,000 loan. My concern is with the second $5,000 that was sent to the participant. I do not believe that the participant was eligible for any in-service withdrawals at the time. How do we correct this?

[QDROphile]

See Rev. Proc. 2008-50.