[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: 45CFR30.17]

[Page 93]
 
                        TITLE 45--PUBLIC WELFARE
 
                           AND HUMAN SERVICES
 
PART 30--CLAIMS COLLECTION--Table of Contents
 
                     Subpart B--Collection of Claims
 
Sec. 30.17  Contracting for collection services.

    (a) Rule. Except as provided in paragraph (b) of this section, the 
Secretary may contract for collection services to recover outstanding 
debts and may pay the contractor's fee from the amounts collected, from 
funds specifically available for that purpose, or from a revolving fund. 
The amount of the fee must be consistent with prevailing commercial 
practice. The Secretary may contract for collection services only if 
reasonable in-house collection efforts and remedies were, or are likely 
to be, unsuccessful or not feasible; and the total amount of anticipated 
recoveries exceeds the total cost of the contract and incidental 
expenses. The Secretary must retain the authority to resolve disputes, 
compromise debts, terminate collection action (or recommend such action 
to the Department of Justice) and refer debts to the Department of 
Justice for litigation. Contracts for collection services must conform 
to the standards set forth in the Federal and Departmental Acquisitions 
Regulations at 48 CFR, Chapters 1 and 3. The Secretary may disclose to 
the contractor the information about debtors necessary to accomplish the 
purpose of the contract. The contractor must provide any data from its 
files relating to the account to the Secretary upon request or upon 
return of the account. The contractor will be subject to the Privacy Act 
of 1974, as amended, as specified in 5 U.S.C. 552a(m), and to applicable 
Federal and State laws and regulations regarding debt collection 
practices, including the Fair Debt Collection Practices Act, 15 U.S.C. 
1692. The contractor will be strictly accountable for all amounts 
collected.
    (b) Social Security Act debts. (1) A contractor's fee for collecting 
debts arising under the Social Security Act may be paid from any funds 
available for that purpose, but not from the amounts collected unless 
those amounts belong to a revolving fund.
    (2) Unless specifically authorized by statute, regulation or written 
agreement, or unless the debts arise from, or involve, fraud or criminal 
activity, debts arising from payments to beneficiaries under Titles II, 
XVI and XVIII of the Social Security Act will not be referred to private 
collection agencies for collection.