(a) The agency head (or designee) responsible for carrying out the
provisions of this subpart with respect to the debt shall send
appropriate written demands to the debtor in terms which inform the
debtor of the consequences of failure to cooperate. In accordance with
guidelines established by the Chief Financial Officer, a total of three
progressively stronger written demands at not more than 30-day intervals
will normally be made unless a response to the first or second demand
indicates that a further demand would be futile and the debtor's
response does not require rebuttal. In determining the timing of the
demand letters, agencies should give due regard to the need to act
promptly so that, as a general rule, if necessary to refer the debt to
the Department of Justice for litigation, such referral can be made
within one year of the final determination of the fact and the amount of
the debt. When the agency head (or designee) deems it appropriate to
protect the government's interests (for example, to prevent the statute
of limitations, 28 U.S.C. 2415, from expiring), written demand may be
preceded by other appropriate actions, including immediate referral for
litigation.
(b) In accordance with guidelines established by the Chief Financial
Officer, the agency official responsible for collection of the debt
shall send written notice to the debtor, informing such debtor as
appropriate:
(1) Of the nature and amount of the indebtedness;
(2) That the agency intends to collect, as appropriate, interest,
penalties and administrative costs; and, in accordance with guidelines
of the Chief Financial Officer, of the applicable standards for
collecting such payments;
(3) Of the date by which payment is to be made (which normally
should be not more than 30 days from the date that the initial
notification was mailed or hand-delivered);
(4) Of the agency's intention to collect by administrative offset
and of the debtor's rights in conjunction with such an offset;
(5) Of the debtor's entitlement to waiver, where applicable, and of
the debtor's rights in conjunction with waiver;
(6) Of the debtor's opportunity to enter into a written agreement
with the agency to repay the debt;
(7) Of the rights of such debtor to a full explanation of the claim,
of the opportunity to inspect and copy the agency records with respect
to the claim and to dispute any information in the records of the agency
concerning the claim;
(8) Of the debtor's right to administrative appeal or review with
respect to the claim and how such review shall be obtained; and
(9) Of the date on which or after which an administrative offset
will begin.
(c) Agencies shall also include in their demand letters the notice
provisions to debtors required by other regulations of the Labor
Department, pertaining to disclosures to credit reporting agencies,
salary offset, and assessment of interest, penalties and administrative
costs, to the extent inclusion of such is appropriate and practicable.
(d) The responsible agency head (or designee) shall exercise due
care to insure that demand letters are mailed or hand-delivered on the
same day that they are actually dated. If evidence suggests that the
debtor is no longer located at the address of record, reasonable action
shall be taken to obtain a current address.
(e) The agency responsible for collecting the claim shall, in the
initial demand letter to the debtor, provide the name of an agency
employee who can provide a full explanation of the claim.
