(a) The debtor shall have the opportunity to obtain review by the
responsible agency of the determination concerning the existence or
amount of the debt.
(b) The debtor seeking review shall make the request in writing to
the reviewing official or employee, not more than 15 days from the date
the initial demand letter was received by the debtor. The request for
review shall state the basis for challenging the determination. If the
debtor alleges that the agency's information relating to the debt is not
accurate, timely, relevant or complete, such debtor shall provide
information or documentation to support this allegation.
(c) The review shall ordinarily be based on written submissions and
documentation by the debtor. However a reasonable opportunity for an
oral hearing shall be provided an individual debtor when the responsible
agency determines that:
(1) An applicable statute authorizes or requires the agency to
consider waiver of the indebtedness involved, the debtor requests waiver
of the indebtedness, and the waiver determination turns on an issue of
credibility or veracity; or
(2) An individual debtor requests reconsideration of the debt and
the agency determines that the question of the indebtedness cannot be
resolved by review of the documentary evidence, for example, when the
validity of the debt turns on an issue of credibility or veracity; or
(3) In other situations in which the agency deems an oral hearing
appropriate. Unless otherwise required by law, an oral hearing under
this section is not required to be a formal evidentiary-type hearing,
although the reviewing official should carefully document all
significant matters discussed at the hearing.
(d) Agencies may effect an administrative offset against a payment
to be made to a debtor prior to the completion of the due process
procedures required by this subpart, if failure to take the offset would
substantially
prejudice the agency's ability to collect the debt; for example, if the
time before the payment is to be made would not reasonably permit the
completion of due process procedures. Offset prior to completion of due
process procedures must be promptly followed by the completion of those
procedures. Amounts recovered by offset but later found not owed to the
agency should be promptly refunded.
(e) Upon completion of the review, the reviewing official shall
transmit to the debtor a written notification of the decision. If
appropriate, this notification shall inform the debtor of the scheduled
date on or after which administrative offset will begin. The
notification shall also, if appropriate, indicate any changes in the
information to the extent such information differs from that provided in
the initial notification under Sec. 20.22.
(f) Nothing in this subpart shall preclude an agency, upon request
of the debtor alleged by the agency to be responsible for a debt, or on
its own initiative, from reviewing the obligation of such debtor,
including an opportunity for reconsideration of the determination
concerning the debt, and including the accuracy, timeliness, relevance,
and completeness of the information on which the debt is based.
(Approved by the Office of Management and Budget under control number
1225-0030)
