[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: 31CFR904.1]



[Page 972-973]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

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

                    TREASURY--DEPARTMENT OF JUSTICE)

 

PART 904_REFERRALS TO THE DEPARTMENT OF JUSTICE--Table of Contents

 

Sec. 904.1  Prompt referral.



    (a) Agencies shall promptly refer to the Department of Justice for 

litigation debts on which aggressive collection activity has been taken 

in accordance with part 901 of this chapter and that cannot be 

compromised, or on which collection activity cannot be suspended or 

terminated, in accordance with parts 902 and 903 of this chapter. 

Agencies may refer those debts arising out of activities of, or referred 

or transferred for collection services to, that agency. Debts for which 

the principal amount is over $1,000,000, or such other amount as the 

Attorney General may direct, exclusive of interest and penalties, shall 

be referred to the Civil



[[Page 973]]



Division or other division responsible for litigating such debts at the 

Department of Justice, Washington, D.C. Debts for which the principal 

amount is $1,000,000, or less, or such other amount as the Attorney 

General may direct, exclusive of interest or penalties, shall be 

referred to the Department of Justice's Nationwide Central Intake 

Facility as required by the CCLR instructions. Debts should be referred 

as early as possible, consistent with aggressive agency collection 

activity and the observance of the standards contained in parts 900-904 

of this chapter, and, in any event, well within the period for 

initiating timely lawsuits against the debtors. Agencies shall make 

every effort to refer delinquent debts to the Department of Justice for 

litigation within one year of the date such debts last became 

delinquent. In the case of guaranteed or insured loans, agencies should 

make every effort to refer these delinquent debts to the Department of 

Justice for litigation within one year from the date the loan was 

presented to the agency for payment or re-insurance.

    (b) The Department of Justice has exclusive jurisdiction over the 

debts referred to it pursuant to this section. The referring agency 

shall immediately terminate the use of any administrative collection 

activities to collect a debt at the time of the referral of that debt to 

the Department of Justice. The agency should advise the Department of 

Justice of the collection activities which have been utilized to date, 

and their result. The referring agency shall refrain from having any 

contact with the debtor and shall direct all debtor inquiries concerning 

the debt to the Department of Justice. The referring agency shall 

immediately notify the Department of Justice of any payments credited by 

the agency to the debtor's account after referral of a debt under this 

section. The Department of Justice shall notify the referring agency, in 

a timely manner, of any payments it receives from the debtor.