Goto Section: 1.1910 | 1.1912 | Table of Contents
FCC 1.1911
Revised as of October 1, 2008
Goto Year:2007 |
2009
Sec. 1.1911 Demand for payment.
(a) Written demand as described in paragraph (b) of this section, and which
may be in the form of a letter, order, memorandum, or other form of written
communication, will be made promptly upon a debtor of the United States in
terms that inform the debtor of the consequences of failing to cooperate to
resolve the debt. The specific content, timing, and number of demand letters
depend upon the type and amount of the debt, including, e.g. , any notes and
the terms of agreements of the parties, and the debtor's response, if any,
to the Commission's letters or telephone calls. One demand letter will be
deemed sufficient. In determining the timing of the demand letter(s), the
Commission will give due regard to the need to refer debts promptly to the
Department of Justice for litigation, in accordance with the FCCS. When
necessary to protect the Government's interest (for example, to prevent the
expiration of a statute of limitations), written demand may be preceded by
other appropriate actions under the FCCS, including immediate referral for
litigation. The demand letter does not provide an additional period within
to challenge the existence of, or amount of the non-tax debt if such time
period has expired under Commission rules or other applicable limitation
periods. Nothing contained herein is intended to limit the Commission's
authority or discretion as may otherwise be permitted to collect debts owed.
(b) The demand letter will inform the debtor of:
(1) The basis for the indebtedness and the opportunities, if any, of the
debtor to request review within the Commission;
(2) The applicable standards for assessing any interest, penalties, and
administrative costs ( Sec. Sec. 1.1940 and 1.1941);
(3) The date by which payment is to be made to avoid late charges and
enforced collection, which normally will not be more than 30 days from the
date that the initial demand letter was mailed or hand-delivered; and
(4) The name, address, and phone number of a contact person or office within
the Commission.
(c) The Commission will expend all reasonable effort to ensure that demand
letters are mailed or hand-delivered on the same day that they are dated. As
provided for in any agreement among parties, or as may be required by
exigent circumstances, the Commission may use other forms of delivery,
including, e.g. , facsimile telecopier or electronic mail. There is no
prescribed format for demand letters. The Commission utilizes demand letters
and procedures that will lead to the earliest practicable determination of
whether the debt can be resolved administratively or must be referred for
litigation.
(d) The Commission may, as circumstances and the nature of the debt permit,
include in demand letters such items as the Commission's willingness to
discuss alternative methods of payment; its policies with respect to the use
of credit bureaus, debt collection centers, and collection agencies; the
Commission's remedies to enforce payment of the debt (including assessment
of interest, administrative costs and penalties, administrative garnishment,
the use of collection agencies, Federal salary offset, tax refund offset,
administrative offset, and litigation); the requirement that any debt
delinquent for more than 180 days be transferred to the Department of the
Treasury for collection; and, depending on applicable statutory authority,
the debtor's entitlement to consideration of a waiver. Where applicable, the
debtor will be provided with a period of time (normally not more than 15
calendar days) from the date of the demand in which to exercise the
opportunity to request a review.
(e) The Commission will respond promptly to communications from the debtor,
within 30 days whenever feasible, and will advise debtors who dispute the
debt that they must furnish available evidence to support their contentions.
(f) Prior to the initiation of the demand process or at any time during or
after completion of the demand process, if the Commission determines to
pursue, or is required to pursue, offset, the procedures applicable to
offset in Sec. Sec. 1.1912 and 1.1913, as applicable, will be followed. The
availability of funds or money for debt satisfaction by offset and the
Commission's determination to pursue collection by offset shall release the
Commission from the necessity of further compliance with paragraphs (a),
(b), (c), and (d) of this section.
(g) Prior to referring a debt for litigation, the Commission will advise
each person determined to be liable for the debt that, unless the debt can
be collected administratively, litigation may be initiated. This
notification will follow the requirements of Executive Order 12988 (3 CFR,
1996 Comp., pp. 157–163) and may be given as part of a demand letter under
paragraph (b) of this section or in a separate document. Litigation counsel
for the Government will be advised that this notice has been given.
(h) When the Commission learns that a bankruptcy petition has been filed
with respect to a debtor, before proceeding with further collection action,
the Commission may immediately seek legal advice from its counsel concerning
the impact of the Bankruptcy Code on any pending or contemplated collection
activities. Unless the Commission determines that the automatic stay imposed
at the time of filing pursuant to 11 U.S.C. 362 has been lifted or is no
longer in effect, in most cases collection activity against the debtor
should stop immediately.
(1) After seeking legal advice, a proof of claim will be filed in most cases
with the bankruptcy court or the Trustee. The Commission will refer to the
provisions of 11 U.S.C. 106 relating to the consequences on sovereign
immunity of filing a proof of claim.
(2) If the Commission is a secured creditor, it may seek relief from the
automatic stay regarding its security, subject to the provisions and
requirements of 11 U.S.C. 362.
(3) Offset is stayed in most cases by the automatic stay. However, the
Commission will determine from its counsel whether its payments to the
debtor and payments of other agencies available for offset may be frozen by
the Commission until relief from the automatic stay can be obtained from the
bankruptcy court. The Commission will also determine from its counsel
whether recoupment is available.
Goto Section: 1.1910 | 1.1912
Goto Year: 2007 |
2009
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