(a) The agency head (or designee) responsible for carrying out the
provisions of this subpart with respect to the debt shall send to the
debtor appropriate written demands for payment 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) Prior to disclosing information to a consumer credit reporting
agency in accordance with this subpart, the agency head (or designee)
responsible for administering the program under which the debt arose
shall review the claim and determine that the claim is valid and
overdue. In cases where the debt arises under programs of two or more
Department of Labor agencies, or in such other instances as the Chief
Financial Officer or his or her designee
may deem appropriate, the Chief Financial Officer, or his or her
designee, may determine which agency, or official, shall have
responsibility for carrying out the provisions of this subpart.
(c) In accordance with guidelines established by the Chief Financial
Officer, the agency official responsible for disclosure of the debt to a
consumer credit reporting agency shall send written notice to the
individual debtor informing such debtor:
(1) Of the basis for the indebtedness;
(2) That the payment of the claim is overdue;
(3) That the agency intends to disclose to a consumer credit
reporting agency, within not less than sixty days after sending such
notice, that the individual is responsible for such claim;
(4) Of the specific information intended to be disclosed to the
credit reporting agency;
(5) Of the rights of such debtor to a full explanation of the claim,
to dispute any information in the records of the agency concerning the
claim, and of the name of an agency employee who can provide a full
explanation of the claim;
(6) Of the debtor's right to administrative appeal or review with
respect to the claim and how such review shall be obtained; and,
(7) Of the date on which or after which the information will be
reported to the consumer credit reporting agency.
(d) Where the disclosure concerns a commercial debt, the responsible
agency head (or designee) shall send written notice to the commercial
debtor informing such debtor of the information discussed in paragraphs
(c)(1), (4), (5), and (6) of this section.
(e) Agencies shall also include in their demand letters the notice
provisions to debtors required by other regulations of the Labor
Department, pertaining to waiver, assessment of interest, penalties and
administrative costs, administrative offset, and salary offset to the
extent that such inclusion is appropriate and practicable.
(f) 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.
(g) To the extent that the requirements under this section have been
provided to the debtor in relation to the same debt under some other
statutory or regulatory authority, the agency is not required to
duplicate such efforts.
[50 FR 5202, Feb. 5, 1985; 50 FR 8608, Mar. 4, 1985]
