(a) The Department of Labor agency responsible for collecting the
claim shall waive the collection of interest on the debt or any portion
of the debt
which is paid within 30 days after the date on which interest began to
accrue. This 30-day period may be extended for another 30 days on a
case-by-case basis, if the agency reasonably determines that such action
is appropriate, and is in accordance with these regulations. Also, the
responsible agency may waive charges assessed under this subpart, based
on criteria specified in the Federal Claims Collection Standards
relating to the compromise of claims (without regard to the amount of
the debt), or if the agency determines that collection of these charges
would be against equity and good conscience or not be in the best
interests of the United States. Waiver under the first sentence of this
paragraph is mandatory. Under the second and third sentences waiver is
permissive and may be exercised only in accordance with the standards
set by these regulations.
(b) Agencies may waive interest and other charges under appropriate
circumstances, including, for example:
(1) Pending consideration of a request for reconsideration,
administrative review, or waiver under a permissive statute,
(2) If the agency has accepted an installment plan, there is no
fault or lack of good faith on the part of the debtor, and the amount of
interest is large enough in relation to the size of the debt and the
amount of the installments that the debtor can reasonably afford to pay
so that the debt can never be repaid, or
(3) If repayment of the full amount of the debt is made after the
date upon which interest and other charges became payable and the
estimated costs of recovering the residual interest balance exceed the
amount owed the Agency.
(c) Where a mandatory waiver or review statute applies, interest and
related charges may not be assessed for those periods during which
collection action must be suspended.
