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Office of FinanceLibraryPolicy and GuidanceDebt Collection/Accounts Receivable Debt Collection Interest Rates - Interest Rates on Overdue and Delinquent Debts. The Code of Federal Regulations (45 CFR Part 30) Claims Collection Section 30.18 entitled "Interest, administrative costs and late payment penalties" contains the basis for the Secretary to determine a higher interest rate than the current value of funds rate for delinquent debt to protect the Governments' interests. Treasury certifies a rate quarterly to the U.S. Public Health Service for delinquencies in the National Research Services Awards 42 USC 288(c)(4) (B) and the National Health Services Corps Scholarship Program 42 USC 250 (B)(1)(A). Treasury utilizes the most comprehensive data available on consumer interest rates which is based on consumer lending rates obtained from the Federal Reserve Board's release entitled "Interest Rates on Selected Consumer Installment Loans at Reporting Commercial Banks" rounded to the nearest 1/8 of one percentage point to determine the certified quarterly rate. The Department utilizes this rate to charge interest for delinquent debts as authorized by Departmental regulations. The Department of Health and Human Services (HHS) begins applying the Treasury "certified quarterly" interest rate on the day that HHS becomes entitled to recover funds. HHS on receipt of Treasury's notification publishes the rate in the Federal Register.This rate is certified by Treasury near the end of a quarter or later. HHS applies that interest rate from the date the notification is published in the Federal Register. Chronological Listing of Rates Federal Register Notice: Interest Rates on Overdue and Installment Debts Last revised: November 26, 2008 |
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