[Code of Federal Regulations]
[Title 45, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR30.16]

[Page 92-93]
 
                        TITLE 45--PUBLIC WELFARE
 
                           AND HUMAN SERVICES
 
PART 30--CLAIMS COLLECTION--Table of Contents
 
                     Subpart B--Collection of Claims
 
Sec. 30.16  Use of credit reporting agencies.

    (a) Overdue debts. (1) The Secretary will report overdue debts over 
$100 owed by individuals and all debts over $100 owed by business 
concerns and private non-profit organizations to consumer or commercial 
credit reporting agencies. Except as provided in paragraph (a)(3) of 
this section, beneficiary debts which arise under the Social Security 
Act may be reported under this section.
    (2) Debts owed by individuals, except debts arising under the Social 
Security Act, will be reported to consumer reporting agencies as defined 
in 31 U.S.C. 3701(a)(3) pursuant to 5 U.S.C. 552a(b)(12) and 31 U.S.C. 
3711(f). The Secretary must first give the individual, but not the 
corporate debtor at least 60 days' written notice that the debt is 
overdue and will be reported to a credit reporting agency (including the 
specific information that will be disclosed); that the debtor may 
dispute the accuracy and validity of the information being disclosed; 
and, if a previous opportunity was not provided, that the debtor may 
request review of the debt or rescheduling of payment. The Secretary may 
disclose only the individual's name, address and Social Security number, 
and the nature, amount, status and history of the debt.
    (3) Unless specifically authorized by statute, regulation or written 
agreement, or unless the debts arise from, or involve, fraud or criminal 
activity, overdue debts arising from payments to beneficaries under 
Titles II, XVI and XVIII of the Social Security Act will not be reported 
to credit reporting agencies. All other overdue debts of individuals 
which arise under the Social Security Act may be reported to credit 
reporting agencies subject to the conditions stated in paragraph (a)(2) 
of this section, except that such disclosure would be as a routine use 
under 5 U.S.C. 552a(b)(3), rather than a disclosure under 552a(b)(12).
    (b) Credit reports and locator services. The Secretary may also use 
credit reporting agencies to obtain credit reports to evaluate the 
financial status of loan applicants and potential contractors and 
grantees; to obtain credit reports when collecting or disposing of debts 
to determine a debtor's ability to repay a debt; and to locate debtors. 
In the case of an individual, the Secretary may disclose, as a routine 
use under 5 U.S.C. 552a(b)(3), only the individual's name, address, 
Social Security number and the purpose for which the information will be 
used.
    (c) Disclosures pertaining to individuals may be made to credit 
reporting agencies generally from the primary

[[Page 93]]

systems of records containing information about the debt or the loan, 
contract or grant application.
    (d) Addresses obtained from the Internal Revenue Service may be 
disclosed to credit reporting agencies only to obtain credit reports 
(see Sec. 30.21).