[Code of Federal Regulations]

[Title 31, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 31CFR901.5]



[Page 964-965]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

   CHAPTER IX--FEDERAL CLAIMS COLLECTION STANDARDS (DEPARTMENT OF THE 

                    TREASURY--DEPARTMENT OF JUSTICE)

 

PART 901_STANDARDS FOR THE ADMINISTRATIVE COLLECTION OF CLAIMS--Table 

of Contents

 

Sec. 901.5  Contracting with private collection contractors and with 

entities that locate and recover unclaimed assets.



    (a) Subject to the provisions of paragraph (b) of this section, 

Federal agencies may contract with private collection contractors, as 

defined in 31 U.S.C. 3701(f), to recover delinquent debts provided that:

    (1) Agencies retain the authority to resolve disputes, compromise 

debts, suspend or terminate collection activity, and refer debts for 

litigation;

    (2) The private collection contractor is not allowed to offer the 

debtor, as an incentive for payment, the opportunity to pay the debt 

less the private collection contractor's fee unless the agency has 

granted such authority prior to the offer;

    (3) The contract provides that the private collection contractor is 

subject to the Privacy Act of 1974 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, including but not limited to 

the Fair Debt Collection Practices Act, 15 U.S.C. 1692; and

    (4) The private collection contractor is required to account for all 

amounts collected.

    (b) Agencies shall use government-wide debt collection contracts to 

obtain debt collection services provided by private collection 

contractors. However, agencies may refer debts to private collection 

contractors pursuant to a contract between the agency and the private 

collection contractor only if



[[Page 965]]



such debts are not subject to the requirement to transfer debts to 

Treasury for debt collection. See 31 U.S.C. 3711(g); 31 CFR 285.12(e).

    (c) Agencies may fund private collection contractor contracts in 

accordance with 31 U.S.C. 3718(d), or as otherwise permitted by law.

    (d) Agencies may enter into contracts for locating and recovering 

assets of the United States, such as unclaimed assets. Agencies must 

establish procedures that are acceptable to the Secretary before 

entering into contracts to recover assets of the United States held by a 

state government or a financial institution.

    (e) Agencies may enter into contracts for debtor asset and income 

search reports. In accordance with 31 U.S.C. 3718(d), such contracts may 

provide that the fee a contractor charges the agency for such services 

may be payable from the amounts recovered, unless otherwise prohibited 

by statute.