[Code of Federal Regulations]
[Title 49, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR92.11]

[Page 725-727]
 
                        TITLE 49--TRANSPORTATION
 
          Subtitle A--Office of the Secretary of Transportation
 
PART 92_RECOVERING DEBTS TO THE UNITED STATES BY SALARY OFFSET--Table of Contents
 
Sec.  92.11  Demand for payment.

    (a) The DOT creditor operating element shall send a debtor a total 
of three progressively stronger written demands at not more than 30-day 
intervals, 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 (see also Sec.  92.21(a)). Other information may also 
indicate that additional written demands are unnecessary.
    (b) The initial written demand for payment shall inform the debtor 
of:
    (1) The basis for the indebtedness;
    (2) The amount of the claim;
    (3) The date by which payment is to be made:
    (4) The debtor's liability for interest, penalties and 
administrative charges in accordance with 31 U.S.C. 3717 and Sec.  92.35 
of this part, if payment is not received within 30 days of the due date 
(see Sec.  92.35 for details regarding interest, penalties and 
administrative costs);
    (5) The intent of the agency to collect by salary offset, including 
asking the assistance of other Federal agencies to help in the offset 
whenever possible, if the debtor:

[[Page 726]]

    (i) Has not made payment by the payment due date;
    (ii) Has not requested a review of the claim within the agency as 
set out in paragraph (b)(8) of this section; or
    (iii) Has not made an arrangement for payment by the payment due 
date:
    (6) The possible submission of claims to a collection agency or 
referral to the General Accounting Office or the Department of Justice 
for litigation in accordance with the procedures in 4 CFR part 105.
    (7) The right of the debtor to inspect and copy the records of the 
agency related to the claim. Any reasonable costs associated with the 
inspection and copying of these records shall be borne by the debtor. 
The debtor shall give reasonable notice in advance to the agency of the 
date upon which he or she intends to inspect and copy the records 
involved.
    (8) The right of the debtor to a review of the claim within the 
agency. If the claim is disputed in full or in part, the debtor shall 
respond to the demand by making a request in writing for a review of the 
claim within the agency by the payment due date stated in the demand. 
The debtor's written response shall state the basis for the dispute. If 
only part of the claim is disputed, the undisputed portion shall be paid 
by the due date. The DOT creditor operating element shall acknowledge 
receipt of the request for a review, and upon completion of 
consideration shall notify the debtor whether its determination has been 
sustained, amended, or canceled within 15 days of the receipt of the 
request for a review. If the DOT operating element either sustains or 
amends its determination, it shall notify the debtor of its intent to 
collect by salary offset unless payment is received within 15 days of 
the mailing of the notification of its decision following a review of 
the claim.
    (9) The right of the debtor to offer to make a written agreement to 
repay the amount of the claim (see Sec.  92.23). The acceptance of such 
an agreement is discretionary with the agency. If the debtor requests a 
repayment arrangement because a payment of the amount due would create a 
financial hardship, the DOT creditor operating element will analyze the 
debtor's financial condition. Depending on its evaluation of the 
financial strength of the debtor, the DOT operating element may agree to 
a written installment repayment schedule with the debtor. The debtor 
shall execute a confession of judgment note which specifies all of the 
terms of the arrangement. The size and frequency of installment payments 
should bear a reasonable relation to the size of the debt and the 
debtor's ability to pay. Interest, penalties and administrative charges 
shall be provided in the note (see Sec.  92.35). The debtor shall be 
provided with a written explanation of the consequences of signing a 
confession of judgment note. The debtor shall sign a statement 
acknowledging receipt of the written explanation which shall recite that 
the statement was read and understood before execution of the note and 
that the note is being signed knowingly and voluntarily. Some form of 
evidence of these facts shall be maintained in the agency's file on the 
debtor.
    (10) The right to an oral hearing or a hearing based on written 
submissions conducted by an administrative law judge or by a hearing 
official not under the control of the head of the Department in 
accordance with Sec.  92.13 of this part.
    (11) The consequences of any knowingly false statements, 
representations, or evidence provided by the employee, which may 
include:
    (i) Disciplinary procedures under 5 U.S.C. chapter 75, 5 CFR part 
752, or any other applicable statutes or regulations;
    (ii) Criminal penalties under 18 U.S.C. 286, 287, 1001 and 1002, or 
any other applicable statute; or,
    (iii) Penalties under the False Claims Act, 31 U.S.C. 3729, et seq., 
or any other applicable statute.
    (12) Proceedings under any other statutory authority for the 
collection of claims of the DOT operating element.
    (13) The fact that amounts paid on or deducted from the debt which 
are later waived or found not owed to the United States will be promptly 
refunded to the employee unless there are applicable contractual or 
statutory provisions to the contrary.

[[Page 727]]

    (14) The name, address, and telephone number of the accounting or 
finance officer who may be contacted if the employee wishes to review 
the records or to obtain information.