[Code of Federal Regulations]
[Title 41, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 41CFR105-55.012]

[Page 409-410]
 
           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT
 
              CHAPTER 105--GENERAL SERVICES ADMINISTRATION
 
PART 105-55_COLLECTION OF CLAIMS OWED THE UNITED STATES--Table of Contents
 
Sec. 105-55.012  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, the 
General Services Administration (GSA) may contract with private 
collection contractors, as defined in 31 U.S.C. 3701(f), to recover 
delinquent debts provided that--
    (1) GSA 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 GSA 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) GSA will use Governmentwide debt collection contracts to obtain 
debt collection services provided by private collection contractors. 
However, GSA may refer debts to private collection contractors pursuant 
to a contract between the Agency and the private collection contractor 
only if 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) GSA may fund private collection contractor contracts in 
accordance

[[Page 410]]

with 31 U.S.C. 3718(b), or as otherwise permitted by law.
    (d) GSA may enter into contracts for locating and recovering assets 
of the United States, such as unclaimed assets.
    (e) GSA may enter into contracts for debtor asset and income search 
reports. In accordance with 31 U.S.C. 3718(b), 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.