[Code of Federal Regulations]
[Title 12, Volume 6]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR608.823]

[Page 41-42]
 
                       TITLE 12--BANKS AND BANKING
 
                 CHAPTER VI--FARM CREDIT ADMINISTRATION
 
PART 608_COLLECTION OF CLAIMS OWED THE UNITED STATES--Table of Contents
 
                     Subpart B_Administrative Offset
 
Sec. 608.823  Right to review of claim.

    (a) If the debtor disputes the claim, the debtor may request a 
review of the FCA's determination of the existence of the debt, the 
amount of the debt, the propriety of collecting the debt by offset, and 
in the case of salary offset, the propriety of the proposed repayment 
schedule. If only part of the claim is disputed, the undisputed portion 
should be paid by the payment due date.
    (b) To obtain a review, the debtor shall submit a written request 
for review to the FCA official named in the Notice of Intent to Collect 
by Administrative [or Salary] Offset within 15 calendar days after 
receipt of the notice. The debtor's written request for review shall 
state the basis on which the claim is disputed and shall specify whether 
the debtor requests an oral hearing or a review of the written record of 
the claim. If an oral hearing is requested, the debtor shall explain in 
the request why the matter cannot be resolved by a review of the 
documentary evidence alone.
    (c) The FCA shall promptly notify the debtor, in writing, that the 
FCA has received the request for review. The FCA shall conduct its 
review of the claim in accordance with Sec. 608.810.
    (d) The FCA's review of the claim, under this section, shall include 
providing the debtor with a reasonable opportunity for an oral hearing 
if:
    (1) An applicable statute authorizes or requires the FCA to consider 
waiver

[[Page 42]]

of the indebtedness, the debtor requests waiver of the indebtedness, and 
the waiver determination turns on an issue of credibility or veracity; 
or
    (2) The debtor requests reconsideration of the debt and the FCA 
determines that the question of the indebtedness cannot be resolved by 
reviewing the documentary evidence; for example, when the validity of 
the debt turns on an issue of credibility or veracity.
    (e) A debtor waives the right to a hearing and will have his or her 
debt offset in accordance with the proposed offset schedule if the 
debtor:
    (1) Fails to file a written request for review within the timeframe 
set forth in paragraph (b) of this section, unless the FCA determines 
that the delay was the result of circumstances beyond his or her 
control; or
    (2) Fails to appear at an oral hearing of which he or she was 
notified unless the hearing official determines that the failure to 
appear was due to circumstances beyond the employee's control.
    (f) Upon completion of its review of the claim, the FCA shall notify 
the debtor whether the FCA's determination of the existence or amount of 
the debt has been sustained, amended, or canceled. The notification 
shall include a copy of the written decision issued by the hearing 
official, pursuant to Sec. 608.810(e). If the FCA's determination is 
sustained, this notification shall contain a provision which states that 
the FCA intends to collect the debt by offset or by requesting other 
Federal agencies for assistance in collecting the debt.
    (g) When the procedural requirements of this section have been 
provided to the debtor in connection with the same debt or under some 
other statutory or regulatory authority, the FCA is not required to 
duplicate those requirements before effecting offset.