[Code of Federal Regulations]
[Title 17, Volume 2]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR204.77]

[Page 216-217]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER II--SECURITIES AND EXCHANGE COMMISSION
 
PART 204--RULES RELATING TO DEBT COLLECTION--Table of Contents
 
 Subpart D--Miscellaneous: Credit Bureau Reporting, Collection Services
 
Sec. 204.77  Referrals to collection agencies.

    (a) The Commission has authority to contract for collection services 
to recover delinquent debts in accordance with 31 U.S.C. 3718(c) and the 
Federal Claims Collection Standards (4 CFR 102.6).
    (b) The Commission will use private collection agencies where it 
determines that their use is in the best interest of the Government. 
Where the Commission determines that there is a need to contract for 
collection services, the contract will provide that:
    (1) The authority to resolve disputes, compromise claims, suspend or 
terminate collection action, or refer the matter to the Department of 
Justice for litigation or to take any other action under this part will 
be retained by the Commission;
    (2) Contractors are subject to the Privacy Act of 1974, as amended, 
to the extent specified in 5 U.S.C. 552a(m) and to applicable Federal 
and State laws and regulations pertaining to debt collection practices, 
such as the Fair Debt Collection Practices Act, 15 U.S.C. 1692;
    (3) The contractor is required to strictly account for all amounts 
collected;
    (4) The contractor must agree that uncollectible accounts shall be 
returned with appropriate documentation to enable Commission to 
determine whether to pursue collection through litigation or to 
terminate collection; and
    (5) The contractor must agree to provide any data in its files 
relating to paragraphs (a) (1), (2) and (3) of Section 105.2 of the 
Federal Claims Collection Standards upon returning the account to the 
Commission for subsequent referral to the Department of Justice for 
litigation.
    (c) The Commission will not use a collection agency to collect a 
debt owed by a current employed or retired

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Federal employee, if collection by salary or annuity offset is 
available.