Sec. 1.1911  Demand for payment.

    (a) Written demands for payment shall be made promptly upon a debtor 
in terms which inform the debtor of the consequences of failure to 
cooperate. 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 not require rebuttal. In 
determining the timing of demand letters, the Commission will give due 
regard to the need to act promptly so that, as a general rule, if it 
becomes necessary to refer the debt to the Department of Justice for 
litigation, such referral can be made within one year of the agency's 
final determination of the fact and the amount of the debt. When 
necessary to protect the Government's interest (for example, to prevent 
the statute of limitations, 28 U.S.C. 2415, from expiring), written 
demand may be preceded by other appropriate actions under this chapter, 
including immediate referral for litigation.
    (b) The initial demand letter will inform the debtor of:
    (1) The basis for the indebtedness and the right of the debtor to 
request review within the agency;
    (2) The applicable standards for assessing interest, penalties, and 
administrative costs (Secs. 1.1940 and 1.1941 of this subpart) and;
    (3) The date by which payment is to be made, which normally should 
not be more than 30 days from the date that the initial demand letter 
was mailed or hand-delivered.
    (c) As appropriate to the circumstances, the Commission may include 
either in the initial demand letter or in subsequent letters, matters 
relating to alternative methods of payment, policies with respect to use 
of consumer reporting agencies and collection services, the agency's 
intentions with respect to referral of the debt to the Department of 
Justice for litigation, and, depending on applicable statutory 
authority, the debtor's entitlement to consideration of waiver.
    (d) 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.
    (e) If, either prior to the initiation of, at any time during, or 
after completion of the demand cycle, the Commission

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determines to pursue administrative offset, then the procedures 
specified in Secs. 1.1912 and 1.1913 as applicable, will be followed. 
The availability of funds for offset and the agency's determination to 
pursue that remedy, release the agency from the necessity of further 
compliance with paragraphs (a), (b) and (c) of this section. If the 
agency has not already sent the first demand letter, the agency's 
written notification of its intent to offset must give the debtor the 
opportunity to make voluntary payment, a requirement which will be 
satisfied by compliance with the notice requirements of Secs. 1.1912 and 
1.1913 as applicable.