[Code of Federal Regulations]

[Title 45, Volume 1]

[Revised as of October 1, 2006]

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

[CITE: 45CFR30.17]



[Page 94-95]

 

                        TITLE 45--PUBLIC WELFARE

 

                    SUBTITLE A--DEPARTMENT OF HEALTH

                           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



[[Page 95]]



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.