Page images
PDF
EPUB

(c)(1) In determining whether a debtor has requested an opportunity set forth under paragraph (b)(3) of this section in a timely manner, the Secretary relies on:

(i) A legibly dated U.S. Postal Seryice postmark for the debtor's request;

have available for inspection and copying.

(c) The Secretary may decline to provide an opportunity to inspect and copy records if the debtor fails to request inspection and copying in accordance with this section. (Approved by the Office of Management and Budget under control number 1880-0515) (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a1, 31 U.S.C. 3716(b)) (51 FR 24099, July 1, 1986, as amended at 51 FR 35646, Oct. 7, 1986)

or

(ii) A legibly stamped U.S. Postal service mail receipt for debtor's request.

(2) The Secretary does not rely on either of the following as proof of mailing;

(i) A private metered postmark.

(ii) A mail receipt that is not dated by the U.S. Postal Service.

NOTE: The U.S. Postal Service does not uniformly provide a dated postmark. Before relying on this method for proof of mailing, a debtor should check with its local post office.

(d) If a debtor previously has been notified of the Secretary's intent to offset or offered an opportunity to take any of the actions set forth in paragraph (b)(3) of this section in connection with the same debt, the Secretary may offset without providing the debtor with an additional notice of intent or opportunity to take any of those actions under these offset procedures. (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a-1, 31 U.S.C. 3716(b))

8 30.23 How must a debtor request an

opportunity to inspect and copy

records relating to a debt? (a) If a debtor wants to inspect and copy Department documents relating to the debt, the debtor must:

(1) File a written request to inspect and copy the documents within 20 days after the date of the notice provided under $ 30.22; and

(2) File the request at the address specified in that notice.

(b) A request filed under paragraph (a) of this section must contain:

(1) All information provided to the debtor in the notice under $30.22 or 830.33(b) that identifies the debtor and the debt, including the debtor's Social Security number and the program under which the debt arose, together with any corrections of that identi fying information; and

(2) A reasonably specific identification of the records the debtor wishes to

830.24 What opportunity does the

debtor receive to obtain a review of

the existence or amount of a debt? (a) If a debtor wants a review within the Department of the issues identified in the notice under $30.22(b)(3)(ii) or 830.33(b)(3)(ii), the debtor must:

(1) File a request for review within 20 days after the date of the notice provided under $ 30.22; and

(2) File a request at the address specified in that notice.

(b) A request filed under paragraph (a) of this section must contain:

(1) All information provided to the debtor in the notice under $30.22 or 8 30.33(b) that identifies the debtor and the particular debt, including the debtor's Social Security number and the program under which the debt arose, together with any corrections of that identifying information; and

(2) An explanation of the reasons the debtor believes that the notice the debtor received under 8 30.22 or $30.33(b) inaccurately states any facts or conclusions relating to the debt.

(c) The Secretary may decline to provide an opportunity for review of a debt if the debtor fails to request the review in accordance with this section.

(d)(1) The debtor shall:

(i) File copies of any documents relating to the issues identified in the notice under $30.22(b)(3)(ii) or $30.33(b)(3)(ii) that the debtor wishes the Secretary to consider in the review;

(ii) File the documents at the address specified in that notice, and

(iii) File the documents no later than:

(A) 20 days after the date of the notice provided under $30.22; or

(B) If the debtor has requested an opportunity to inspect and copy records under $30.23 within the time period specified in that section, 15 days after the date on which the Secretary makes available to the debtor the relevant, requested records.

(2) The Secretary may decline to consider any reasons or documents that the debtor fails to provide in accordance with paragraphs (b) and (d) of this section.

(e) If the Secretary bases the review on only the documentary evidence, the Secretary:

(1) Reviews the documents submitted by the debtor and other relevant evidence; and

(2) Notifies the debtor in writing of the Secretary's decision regarding the issues identified in the notice under $ 30.22(b)(3)(ii) or $30.33(b)(3)(ii) and, if appropriate, the question of waiver of the debt. (Approved by the Office of Management and Budget under control number 1880-0515) (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a1, 31 U.S.C. 3716(b)) (51 FR 24099, July 1, 1986, as amended at 51 FR 35647, Oct. 7, 1986)

(c) The Secretary grants a debtor's request for an oral hearing regarding the issues identified in the notice under $30.22(b)(3)(ii) or $ 30.33(b)(3)(ii) only if:

(1)(i) A statute authorizes or requires the Secretary to consider waiver of the indebtedness involved;

(ii) The debtor files a request for waiver of the indebtedness with the request for review filed under paragraph (a)(1) of this section; and

(iii) The question of waiver of the indebtedness turns on an issue of credibility or veracity; or

(2) The Secretary determines that the issues identified in the notice under $ 30.22(b)(3)(ii) or 830.33(b)(3)(ii) cannot be resolved by review of only the documentary evidence.

(d) Notwithstanding paragraph (b) of this section, the Secretary may deny oral hearings for a class of similar debts if:

(1) The issues identified in the notice under 8 30.22(b)(3)(ii) or 30.33(b)(3)(ii) for which an oral hearing was requested, or the issue of waiver, rarely involve issues of credibility or veracity; and

(2) The Secretary determines that review of the documentary evidence is ordinarily an adequate means to correct mistakes.

(e) The Secretary may decline to consider any reasons that the debtor fails to provide in accordance with paragraph (b)(1) of this section. (Approved by the Office of Management and Budget under control number 1880-0515) (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a-1, 31 U.S.C. 3716(b)) (51 FR 24099, July 1, 1986, as amended at 51 FR 35647, Oct. 7, 1986)

$ 30.25 How may a debtor obtain an

oral hearing? (a) If a debtor wants the Secretary to conduct the review requested under 830.24 as an oral hearing, the debtor must file a written request for an oral hearing together with the request for review filed under $30.24(a).

(b) A request filed under paragraph (a) of this section must contain the following in addition to the information filed under $30.24(b):

(1) An explanation of reason(s) why the debtor believes the Secretary cannot resolve the issues identified in the notice under $30.22(b)(3)(ii) or 830.33(b)(3)(ii) through a review of the documentary evidence.

(2) An identification of:

(i) The individuals that the debtor wishes to have testify at the oral hearing;

(ii) The specific issues identified in the notice regarding which each individual is prepared to testify; and

(iii) The reasons why each individual's testimony is necessary to resolve the issue.

$30.26 What special rules apply to an

oral hearing? (a) The oral hearing under $30.25 is not a formal evidentiary hearing subject to 5 U.S.C. 554, unless required by law.

(b) If the Secretary grants an oral hearing, the Secretary notifies the debtor in writing of:

(1) The time and place for the hearing;

(2) The debtor's right to representation; and

(3) The debtor's right to present and cross examine witnesses.

ing;

(c) If the Secretary grants an oral (d) In deciding whether to enter into hearing, the Secretary designates an the agreement, the Secretary may conofficial to:

sider: (1) Govern the conduct of the hear (1) The Government's interest in col

lecting the debt; and (2) Take all necessary action to avoid (2) Fairness to the debtor. unreasonable delay in the proceedings; (e)(1) A debtor that enters into a re

(3) Review the evidence presented at payment agreement with the Secretary the hearing, the documents submitted under this section waives any right to by the debtor, and other relevant evi further review by the Secretary of the dence; and

issues relating to the original debt (4) After considering the evidence, identified in the notice under notify the debtor in writing of the offi- $30.22(b)(3)(ii) or $30.33(b)(3)(ii). cial's decision regarding the issues (2) If a debtor breaches a repayment identified in the notice under agreement, the Secretary may offset, 830.22(b)(3)(ii) or $30.33(b)(3)(ii) and, if or, under $30.30, refer to another agenappropriate, the question of waiver of

question Of Waiver Oicy for offset: the debt.

(i) The amount owing under the (d) The official designated under

agreement; or paragraph (c) of this section may de (ii) The entire original debt, to the cline to hear any witnesses or testi

extent not repaid. mony not identified by the debtor in accordance with 8 30.25(b)(2).

(Authority: 20 U.S.C. 1221-3(a)(1) and 1226a-1, (e) The decision of the designated of

31 U.S.C. 3716(b)) ficial under paragraph (c) of this sec- [51 FR 24099, July 1, 1986, as amended at 51 tion constitutes the final decision of FR 35647, Oct. 7, 1986) the Secretary.

$ 30.28 When may the Secretary offset (Authority: 20 U.S.C. 1221-3(a)(1) and 1226a-1, before completing the procedures 31 U.S.C. 3716(b))

under $8 30.22–30.27? 830.27 When does the Secretary enter

(a) The Secretary may offset before into a repayment agreement rather

completing the procedures otherwise than offset?

required by $$ 30.22–30.27 if: (a) If a debtor wants an opportunity

(1) Failure to offset would substan

tially prejudice the Government's abilto enter into a written agreement to repay a debt on terms acceptable to the

ity to collect the debt; and Secretary, the debtor must:

(2) The amount of time remaining be(1) File a request to enter into such

fore the payment by the United States agreement within 20 days after the

which is subject to offset does not readate of the notice provided under

sonably permit completion of the pro830.22; and

cedures under $$ 30.22–30.27. (2) File the request at the address

(b) If the Secretary offsets under specified in the notice.

paragraph (a) of this section, the Sec(b) A request filed under paragraph

retary: (a) of this section must contain all in

(1) Promptly completes the proceformation provided to the debtor in the

dures under $830.22–30.27 after initinotice under $30.22 or $30.33(b) that

ating the offset; and identifies the debtor and the debt, in

(2) Refunds any amounts recovered cluding the debtor's Social Security

under the offset that are later found number and the program under which

not to be owed to the United States. the debt arose, together with any cor (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226arections of that identifying informa- 1, 31 U.S.C. 3716(b)) tion.

(c) If the Secretary receives a request $30.29 What procedures apply when filed in accordance with this section,

the Secretary offsets to collect a the Secretary may enter into a written

debt owed another agency? agreement requiring repayment in ac- The Secretary may initiate offset to cordance with 4 CFR 102.11, instead of collect a debt owed another Federal offsetting the debt.

agency if:

(a) An official of that agency certifies in writing:

(1) That the debtor owes a debt to the United States;

(2) The amount of the debt; and

(3) That the agency has complied with 4 CFR 102.3; and

(b) For offsets under 31 U.S.C. 3716, the Secretary makes an independent determination that the offset meets the standards under $ 30.21(a)(2). (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a1, 31 U.S.C. 3716(b))

$ 30.30 What procedures apply when

the Secretary requests another agency to offset a debt owed under a program or activity of the Department? (a) The Secretary may request another Federal agency to offset a debt owed under a program or activity of the Department if the Secretary certifies in writing to the other Federal agency:

(1) That the debtor owes a debt to the United States;

(2) The amount of the debt; and

(3) That the Secretary has complied with 4 CFR 102.3.

(b) Before providing the certification required under paragraph (a) of this section, the Secretary complies with the procedures in 88 30.20–30.27. (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a1, 31 U.S.C. 3716(b))

debt for offset to the Secretary of the Treasury after complying with the procedures in 8830.20–30.28, as modified by this section.

(b) Notwithstanding 830.22(b), the notice sent to a debtor under $30.22 informs the debtor that:

(1) The debt is past due;

(2) The Secretary intends to refer the debt for offset to the Secretary of Treasury;

(3) The debtor has an opportunity to:

(i) Inspect and copy Department records regarding the existence, amount, enforceability, or past-due status of the debt;

(ii) Obtain a review within the Department of the existence, amount, enforceability, or past-due status of the debt:

(iii) Enter into a written agreement with the Secretary to repay the debt; and

(4) The debtor must take an action set forth under paragraph (b)(3) by a date specified in the notice.

(c) Notwithstanding $30.23(a), if a debtor wants to inspect and copy Department records regarding the existence, amount, enforceability, or pastdue status of the debt, the debtor must:

(1) File a written request to inspect and copy the records within 20 days after the date of the notice provided under $ 30.22; and

(2) File the request at the address specified in that notice.

(d) Notwithstanding the time frame under $30.24(a), if a debtor wants a review under that paragraph, the debtor must file a request for review at the address specified in the notice by the later of:

(1) Sixty-five days after the date of the notice provided under $30.22;

(2) If the debtor has requested an opportunity to inspect and copy records within the time period specified in paragraph (c) of this section, 15 days after the date on which the Secretary makes available to the debtor the relevant, requested records; or

(3) If the debtor has requested a review within the appropriate time frame under paragraph (d) (1) or (2) of this section and the Secretary has provided

830.31 How does the Secretary apply

funds recovered by offset if mul. tiple debts are involved? If the Secretary collects more than one debt of a debtor by administrative offset, the Secretary applies the recovered funds to satisfy those debts based on the Secretary's determination of the best interests of the United States, determined by the facts and circumstances of the particular case. (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a1, 31 U.S.C. 3716(b))

[blocks in formation]

an initial review by a guarantee agen- Subpart E-What Costs and Pency, seven days after the date of the ini

alties Does the Secretary Imtial determination by the guarantee

pose on Delinquent Debtors? agency. (e) Notwithstanding the time frames

SOURCE: 53 FR 33425, Aug. 30, 1988, unless under $30.24(d), a debtor shall file the

otherwise noted. documents specified under that paragraph with the request for review. $30.60 What costs does the Secretary

(f) Notwithstanding the time frame impose on delinquent debtors? under $30.27(a), a debtor must agree to (a) The Secretary may charge a debtrepay the debt under terms acceptable or for the costs associated with the colto the Secretary and make the first lection of a particular debt. These payment due under the agreement by costs include, but are not limited tothe latest of:

(1) Salaries of employees performing (1) The seventh day after the date of Federal loan servicing and debt collecdecision of the Secretary if the debtor

tion activities; requested a review under $30.24;

(2) Telephone and mailing costs; (2) The sixty-fifth day after the date

(3) Costs for reporting debts to credit of the notice under $30.22(b), if the

bureaus; debtor did not request a review under

(4) Costs for purchase of credit bu$30.24, or an opportunity to inspect and

reau reports;

(5) Costs associated with computer copy records of the Department under

operations and other costs associated $ 30.23; or

with the maintenance of records; (3) The fifteenth day after the date

(6) Bank charges; on which the Secretary made available

(7) Collection agency costs; relevant records regarding the debt, if

(8) Court costs and attorney fees; and the debtor filed a timely request under

(9) Costs charged by other Govern$ 30.23(a).

mental agencies. (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a

(b) Notwithstanding any provision of 1, 31 U.S.C. 3720A)

State law, if the Secretary uses a col

lection agency to collect a debt on a PROCEDURES FOR REPORTING DEBTS TO contingent fee basis, the Secretary CONSUMER REPORTING AGENCIES charges the debtor, and collects

through the agency, an amount suffi8 30.35 What procedures does the Sec cient to recover

retary follow to report debts to con (1) The entire amount of the debt; sumer reporting agencies?

and (a)(1) The Secretary reports informa

(2) The amount that the Secretary is tion regarding debts arising under a

required to pay the agency for its colprogram or activity of the Department

lection services.

(c)(1) The amount recovered under and held by the Department to consumer reporting agencies, in accord

paragraph (b) of this section is the enance with the procedures described in

tire amount of the debt, multiplied by this section.

the following fraction: (2) The term consumer reporting agen

1 cy, as used in this section, has the same meaning as provided in 31 U.S.C.

1-cr. 3701(a)(3).

(2) In paragraph (c)(1) of this section, (b) Before reporting information on a cr equals the commission rate the Dedebt to a consumer reporting agency, partment pays to the collection agenthe Secretary follows the procedures су. set forth in $30.33.

(d) If the Secretary uses more than

one collection agency to collect similar (Authority: 20 U.S.C. 1221e-3(a)(1) and 1226a

debts, the commission rate (cr) de1, 31 U.S.C. 3711, $ 16023, 16029, Pub. L. 99-272)

scribed in paragraph (c)(2) of this sec

tion is calculated as a weighted averSubpart D [Reserved]

age of the commission rates charged by

« PreviousContinue »