(2) Any person who, for monetary fees, dues, or on a cooperative basis, regularly engages in whole or in part in the practice of (i) obtaining credit or other information on consumers for Ser the purpose of furnishing such information to consumer reporting agencies (as defined in paragraph (1) of this definition), or (ii) serving as a marketting agent under arrangements enaGebling third parties to obtain such information from such reporting agenThecies. Debt means an amount owed to the United States and past due, from sources which include loans insured or guaranteed by the United States and all other amounts due the United States from assigned mortgages or deeds of trust, direct loans, advances, repurchase demands, fees, leases, rents, royalties, services, sale of real or personal property, overpayments, penalties, damages, interest, fines and forfeitures (except those arising under the Uniform Code of Military Justice), and all other similar sources. Debtor means the same as person. Department means the Department of Housing and Urban Development. Department Claims Officer. (see $17.66). Determination means the point at which the Secretary decides that the debt is valid. Disposable pay means that part of current basic pay, special pay, incentive pay, retired pay, retainer pay, or in the case of an employee not entitled to basic pay, other authorized pay remaining after deductions required by law. Deductions from pay include: (1) Amounts owed by the individual to the United States; (2) Amounts withheld for Federal employment taxes; (3) Amounts properly withheld for Federal, State, or local income tax purposes, if the withholding of the amount is authorized or required by law and if amounts withheld are not greater than would be the case if the individual claimed all dependent to which he or she were entitled. The withholding of additional amounts under 26 U.S.C. 3402(1) may be permitted only when the individual presents evidence of tax obligation which supports the additional withholding; (4) Amounts deducted as health insurance premiums, including, but not limited to, amounts deducted from civil service annuities for Medicare where such deductions are requested by the Health Care Financing Administration; (5) Amounts deducted as normal retirement contributions, not including amounts deducted for supplementary coverage. Amounts withheld as Survivor Benefit Plan or Retired Serviceman's Family Protection Plan payments are considered to be normal retirement contributions. Amounts voluntarily contributed toward additional civil service annuity benefits are considered to be supplementary; and Employees' (6) Amounts deducted as normal life insurance premiums from salary or other remuneration for employment, not including amounts deducted for supplementary coverage. Both ServiceInsurance men's Group Life "Basic Life" Federal Group Life Insurance premiums are considered to be normal life insurance premiums; all optional Federal Employees' Group Life Insurance premiums and life insurance premiums paid for by allotment, such as National Service Life Insurance, are considered to be supplementary; (7) Amounts withheld from benefits payable under title II of the Social Security Act where the withholding is required by law; (8) Amounts mandatorily withheld for the U.S. Soldiers' and Airmen's Home; and (9) Fines and forfeitures ordered by a court-martial or by a commanding officer. Employee means a current employee of a Federal agency, including a current member of the Armed Forces or Reserve of the Armed Forces of the United States. Office means the organization of each Assistant Secretary, the Government National Mortgage Association (GNMA), the Solar Energy and Energy Conservation Bank and each Field Office. Pay means basic pay, special pay, income pay, retired pay, retainer pay, or, in case of an employee not entitled to basic pay, other authorized pay. Person means any natural person or persons, profit or nonprofit corporations, partnership, association, trust, estate, government subdivision or other entity which is caor government pable of owing a debt to the Government. For purposes of the interest provisions, person does not include an agency of the United States Government, a State government, or a unit of general local government. Salary offset means a deduction from the pay of an employee without his or her consent to satisfy a debt. Salary offset is one type of administrative offset which may be used by the Department in the collection claims. of Secretary means the Secretary of the Department of Housing and Urban Development or his or her designee. United States includes an agency of the United States. Waiver means the cancellation, remission, forgiveness, or non-recovery of a debt allegedly owed by an employee of an agency as permitted or required by 5 U.S.C. 5584, 10 U.S.C. 2774, 32 U.S.C. 716, or 5 U.S.C. 8346(b), or any other law. [36 FR 24427, Dec. 22, 1971. Redesignated and amended at 49 FR 32349, Aug. 14, 1984] § 17.61 Incorporation of joint standards by reference. All administrative actions to collect claims arising out of the activities of the Department shall be performed in accordance with the applicable standards prescribed in 4 CFR parts 101 through 105, which are incorporated by reference and supplemented in this subpart. or § 17.62 Subdivision and joining of claims. (a) A debtor's liability arising from a particular transaction shall be considered as a single claim in contract determining whether the claim is one not exceeding $20,000 exclusive of interest for the purpose of compromise or termination of collection action. Such a claim may not be subdivided to avoid the monetary ceiling established by the Act. 24 CFR Subtitle A (4-1-91 Edition) promise or termination of collection action with respect to any one of such claims that does not exceed $20,000 exclusive of interest. § 17.63 Authority of offices to attempt col lection of claims. The head of each office shall desig nate a claims collection officer, who shall attempt to collect in full all claims of the Department for money or property arising out of the activi ties of such office. Each claims collection officer shall establish and currently maintain a file with regard to each claim for which collection activities are undertaken. [40 FR 28599, July 7, 1975. Redesignated at 49 FR 32349, Aug. 14, 1984] § 17.64 Referral of claims to the Assistant Secretary for Administration. (P) Authority of the Assistant Secretary for Administration. The Assistant Secretary for Administration shall exercise the powers and perform the duties of the Secretary to compromise, or to suspend or terminate collection action on, all Department claims not exceeding $20,000 exclusive of interest, except as provided in § 17.65 and paragraph (b) of this section. When initial attempts at collection by the office having responsibility for such claims have not been fully successful, the claim file shall be forwarded to the Assistant Secretary for Administration for further administrative collection procedures. Claims shall be referred to the Assistant Secretary for Administration well within the applicable statute of limitations (28 U.S.C. 2415 and 2416), but in no event more than 2 years after the claims accrued. (b) Exclusions. There shall be no compromised or terminated collection action with respect to any claim: (1) As to which there is an indication of fraud, the presentation of a false claim, or misrepresentation on the part of the debtor or any other party having an interest in the claim; (2) based in whole or in part on conduct in violation of the anti-trust laws; (3) based on tax statutes; or (4) arising from an exception made by the General Accounting Office in the account of an accountable officer. Such claims (b) Joining of two or more single claims in a demand upon a particular debtor for payment totaling more than $20,000 does not preclude com hall be promptly referred to the Jusice Department or GAO, as appropri 17.65 Authority of offices to compromise claims or suspend or terminate collection action. (a) Small claims. The Assistant Secretary for Administration periodically shall establish and disseminate to claims collection officers a maximum dollar amount up to which claims collection officers are authorized to compromise a claim or suspend or terminate collection action on a claim. (b) Claims arising under certain programs. The office primarily responsible for the following programs of the Department is authorized, in those eases where initial collection attempts are not wholly successful, to compromise or to suspend or terminate collection action on claims not exceeding $20,000 with respect to: (1) A claim under title I of the National Housing Act; (2) A claim on a rehabilitation loan account under section 312 of the Housing Act of 1964; (3) A claim against tenants or former tenants of properties acquired by, or under the custody of, the Secretary or held by him as mortgagee in possession; or (4) A claim arising out of the operational (nonadministrative) activities of the Government National Mortgage Association (GNMA). However, no office shall undertake to compromise or terminate any collection action excluded under § 17.64(b). [36 FR 24427, Dec. 22, 1971. Redesignated at 49 FR 32349, Aug. 14, 1984, and amended at 52 FR 35414, Sept. 21, 1987] $17.56 Department claims officer. The Assistant Secretary for Administration shall designate a subordinate official as Department Claims Officer, who shall be responsible for the establishment and maintenance of procedures within the Department relating to the collection of claims and the coordination of all collection activities in all Department offices. [40 FR 28599, July 7, 1975. Redesignated at 49 FR 32349, Aug. 14, 1984] 817.67 Claims files. Each claims collection officer is responsible for obtaining current credit data about each person against whom a claim is pending in his office. The file shall be kept reasonably up to date by the Department Claims Officer for claims referred to the Assistant Secretary for Administration for collection. Such credit data may take the form of: (a) A commercial credit report, (b) an agency investigative report showing the debtor's assets and liabilities and his income and expenses, (c) the individual debtor's own financial statement executed under penalty of perjury reflecting his assets and liabilities and his income and expenses, or (d) an audited balance sheet of a corporate debtor. The file should also contain a checklist or brief summary of actions taken to collect or comprise a claim. The Department Claims Officer shall make a monthly report to the Assistant Secretary for Administration and all offices that have referred claims for collection. The report should contain the following information as a minimum: (a) All outstanding claims referred to the Assistant Secretary for Administration for administrative collection, including the name and address of the debtor, the amount of the claim, the date the claim accrued, the basis of the claim, the office referring the claim, and the current progress of collection activities. (b) All claims compromised or on which collection has been suspended or terminated or referred to GAO or Justice for further collection action during the month. The collection action taken and the basis for the action should be indicated. (c) All claims referred to the Department of Justice under § 17.64(a). (d) Claims returned to this Department by the Justice Department for further collection action because Justice's handling was not warranted. § 17.69 Accounting control. Each office and the Department Claims Officer shall process all claims collections through the appropriate accounting office and report the collection, compromise, suspension and termination of all claims to the appropriate accounting office for recording. 817.70 Record retention. The file of each claim on which administrative collection action has been completed shall be retained by the appropriate office or the Assistant Secretary for Administration not less than 1 year after the applicable statute of limitations has run. § 17.71 Suspension or revocation of eligibility. (a) Where a contractor, grantee, or other participant in programs sponsored by the Department fails to pay his debts to the Department within a reasonable time after demand, the fact shall be reported by the Assistant Secretary for Administration to the Inspector General, who shall place such defaulting participant's name on the Department's list of debarred, suspended and ineligible contractors and grantees and the participant will be so advised. (b) The failure of any surety to honor its obligations in accordance with 6 U.S.C. 11 is to be reported at once to the Assistant Secretary for Administration who shall so advise the Treasury Department. The Treasury Department will notify this Department when a surety's certificate of authority to do business with the Government has been revoked or forfeited. § 17.72 Methods of collection and imposition of late charges. (a) Demand for payment. Appropriate written demands shall be made upon the debtor which shall include information relating to the consequences of his failure to cooperate. (b) Methods of collection: Administrative and salary offset. The Department may use administrative offset and salary offset procedures as alternative methods for the collection of money owed the Department from those set out in this section. For specific procedures on administrative offset see §§ 17.100 through 17.118. (d) Collection in install Claims with accrued interest sho collected in full in one lump whenever this is possible. Howe the debtor is financially unable t the indebtedness in one lump payment may be accepted in rest installments. (e) Interest. Where prejudgmen terest is not mandated by statute, tract or regulation, the interest be assessed at 7 percent. Prejudg interest may be waived as an ind ment to voluntary payment. In cases demand letters should ing the debtor that prejudgment inte will be collected if suit becomes new sary. When a debt is paid in inst ments and interest is collected, inst ment payments will first be applied the payment of accrued interest then to principal in accordance the so-called “U.S. Rule” unless a *** ferent rule is prescribed by stat contract or regulation. Prejudgm interest shall not be demanded or lected on civil penalty and forfeit claims unless the statute under wh the claim arises authorizes the coll tion of such interest. (f) Omission not a defense. Failt of HUD to comply with any standa བྱུགས་པ། མན་ prescribed in 4 CFR parts 101 throu 105 or in this subpart shall not available as a defense to any debtor. [36 FR 24427, Dec. 22, 1971. Redesignate and amended at 49 FR 32349, 32350, Au 14, 1984] $7.73 Standards for compromise claims. of Compromise offer. An offer to mpromise may be accepted: (1) If here is real doubt concerning the Deartment's ability to prove its case in court for the full amount claimed; (2) If the cost of collecting the claim does not justify the enforced collection of he full amount; (3) if in connection rith statutory penalties of forfeitures stablished as an aid to enforcement and to compel compliance, the Depart nent's enforcement policy will be adequately served by acceptance of the am to be agreed upon, or (4) for other reasons deemed valid by the Assistant Secretary for Administration (or other designee) and made a part of the claim record. (b) Documentary evidence of compromise. No compromise of a claim shall be final or binding on the Department unless it is in writing and signed by the appropriate officer who has authority to compromise the claim pursuant to this subpart. §17.74 Standards for suspension or termination of collection action. (a) Suspension of collection action. Collection action shall be suspended temporarily on a claim when the debtor cannot be located after diligent effort but there is reason to believe that future collection action may be sufficiently productive to justify periodic review and action on the claim, having consideration for its size and the amount which may be realized. Collection action may be suspended temporarily on a claim when the debtor owns no substantial equity in realty and is presently unable to make payment on the Department's claim or effect a compromise, but his future prospects justify retention of the claim for periodic review and action and (1) the applicable statute of limitations has been tolled or started anew or (2) future collection can be effected by offset notwithstanding the statute of limitations. Suspension as to a particular debtor should not defer the early liquidation of security for the debt. (b) Termination of collection action. Collection action may be terminated and the Department file closed for the following reasons: (1) No substantial amount can be collected; (2) the debtor cannot be located; (3) the cost will exceed recovery; (4) the claim is legally without merit; or (5) the claim cannot be substantiated by evidence. § 17.75 Referral to GAO or Justice Department. (a) Claims referred. Claims which cannot be collected, compromised, or terminated in accordance with 4 CFR parts 101 to 105 will be referred to the General Accounting Office in accordance with 31 U.S.C. 71 or to the Department of Justice if this Department has been granted an exception from referrals to the General Accounting Office. Also, if there is doubt as to whether collection action should be suspended or terminated on a claim, the claim may be referred to the General Accounting Office for advice. When recovery of a judgment is prerequisite to imposition of administrative sanctions, the claim may be referred to the Justice Department for litigation even though termination of collection activity might otherwise be considered. (b) Prompt referral. Such referrals shall be made as early as possible consistent with aggressive collection action, and in any event, well within the statute of limitations for bringing suit against the debtor. § 17.76 Disclosure to a consumer reporting agency. (a) Definition. For purposes of this section, individual means a natural person. (b) Conditions for disclosure. The Secretary may disclose to a Consumer Reporting Agency information from a system of records to the effect that an individual is responsible for a debt. Before doing so, the Secretary will ensure that: (1) The notice for the system of records required by the Privacy Act of 1974 (5 U.S.C. 552a(e)(4)) indicates that the information in the system may be disclosed to a Consumer Reporting Agency; (2) There has been Departmental review of the debt and a determination that the debt is valid and overdue; |