[Code of Federal Regulations]
[Title 29, Volume 4]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR1450.9]

[Page 79-80]
 
                             TITLE 29--LABOR
 
                        AND CONCILIATION SERVICE
 
PART 1450--COLLECTIONS OF CLAIMS OWED THE UNITED STATES--Table of Contents
 
     Subpart B--Administrative Offset--Consumer Reporting Agencies--
                       Contracting for Collection
 
Sec. 1450.9  Demand for payment.


    Prior to making an administrative offset, demand for payment will be 
made as stated below:
    (a) Written demands 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 require rebuttal. In determining the timing 
of demand letters, FMCS will give due regard to the need to act promptly 
so that, as a general rule, if 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 subpart 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 (subpart D of this regulation) and
    (3) The date by which payment is to be made, which normally should 
be not more than 30 days from the date that the initial demand letter 
was mailed or hand-delivered. FMCS will exercise care to insure that 
demand letters are mailed or hand-delivered on the same day that they 
are actually dated. Apart from this, there is no prescribed format for 
the demand letters.
    (c) As appropriate to the circumstances, FMCS 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) FMCS will respond promptly to communications from the debtor, 
within 30 days whenever feasible, and will advise debtor who dispute the 
debt that they must furnish available evidence to support their 
contentions.
    (e) If, either prior to the initiations of, at any time during, or 
after completion of the demand cycle, FMCS determines to pursue 
administrative offset, then the requirements specified in Secs. 1450.10 
and 1450.11, as applicable, will be met. The availability of funds for

[[Page 80]]

offset and the agency determination to purse it 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. 1450.10 and 1450.11 as applicable.