(a) The debtor shall have the opportunity to obtain a hearing by an
administrative law judge of the agency's determination concerning the
existence or amount of the debt, or the repayment schedule proposed by
the agency, and except as provided in Sec. 20.75(c), review by an
administrative law judge is to be the exclusive administrative review
remedy on the agency's determination under these regulations.
(b) The debtor seeking a hearing shall make the request in writing
to the Chief Administrative Law Judge, pursuant to 29 CFR part 18, not
more than 15 days from the date the notice of proposed salary offset was
received by the debtor. The request for hearing shall be signed by the
employee and 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 fully identify
and explain with reasonable specificity all the facts, evidence and
witnesses, if any, which the employee believes supports his or her
position.
(c) The hearing ordinarily shall be based on written submissions and
documentation by the debtor. However, an opportunity for an oral hearing
shall be provided an individual debtor when the administrative law judge
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 administrative law judge 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 administrative law judge deems
an oral hearing appropriate.
Unless otherwise required by law or these regulations, any oral hearing
under this section shall be conducted under the procedures in 29 CFR
part 18. Except as provided under Sec. 20.79, the provisions for
discovery shall not be applicable unless otherwise ordered by the
administrative law judge. Procedural and evidentiary rules shall be
relaxed by the administrative law judge to provide informality and to
facilitate the hearing.
(d) Agencies may effect a salary offset against the current pay
account of a debtor prior to the completion of the hearing procedures
required by this subpart, if failure to initiate the offset would
substantially prejudice the agency's ability to collect the debt; for
example, if the employee's anticipated period of employment with the
Government would not reasonably permit the completion of the hearing and
recovery of the debt prior to termination of employment. Offset prior to
completion of the hearing must be promptly followed by the completion of
that hearing.
(e) If the debtor seeking a hearing under this section makes the
request for review of the obligation after the expiration of the period
for filing as described in paragraph (b) of this section, the
administrative law judge may accept the request for hearing if the
debtor can show that the delay was because of circumstances beyond his
or her control or because of failure to receive notice of the time limit
(unless otherwise aware of it).
(f) Upon completion of the hearing, the administrative law judge
shall transmit to the debtor a written decision. This decision shall
state, at a minimum: The facts purported to evidence the nature and
origin of the alleged debt; the administrative law judge's findings and
conclusions, as to the employee's and/or creditor agency's grounds; the
amount and validity of the alleged debt; and, where applicable, the
repayment schedule. If appropriate, the notification shall also indicate
any changes in the information to the extent such information differs
from that provided in the notification under Sec. 20.78(b).
(Approved by the Office of Management and Budget under control number
1225-0038)
[52 FR 3772, Feb. 5, 1987; 52 FR 13563, Apr. 23, 1987]
