[Code of Federal Regulations]
[Title 22, Volume 1]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 22CFR34.10]

[Page 124-125]
 
                       TITLE 22--FOREIGN RELATIONS
 
                     CHAPTER I--DEPARTMENT OF STATE
 
PART 34_DEBT COLLECTION--Table of Contents
 
                      Subpart B_Collection Actions
 
Sec.  34.10  Collection methods.

    Upon completion of notice and provision of all due process rights as 
listed in 34.8(b) of this section and upon final determination of the 
existence and amount of a debt, unless other acceptable payment 
arrangements have been made or procedures under a specific statute 
apply, STATE shall collect the debt by one or more of the following 
methods:
    (a) Administrative offset. (1) Payments otherwise due the debtor 
from the United States shall be offset from the debt in accordance with 
31 CFR 901.3. These may be funds under the control of the Department of 
State or other Federal agencies. Collection may be made through 
centralized offset by the Financial Management Service (``FMS'') of the 
Department of the Treasury.
    (2) Such payments include but are not limited to vendor payments, 
salary, retirement, lump sum payments due upon Federal employment 
separation, travel reimbursements, tax refunds, loans or other 
assistance. For offset of Federal salary payments under 5 U.S.C. 5514 
for certain types of debt see subpart C of this part.
    (3) Administrative offset under this subsection does not apply to 
debts specified in the FCCS, 31 CFR 901.3(a)(2).
    (4) Before administrative offset is instituted by another Federal 
agency or the FMS, STATE shall certify in writing to that entity that 
the debt is past due and legally enforceable and that STATE has complied 
with all applicable due process and other requirements as described in 
this part and other Federal law and regulations.
    (5) Administrative offset of anticipated or future benefit payments 
under the Civil Service Retirement and Disability Fund will be requested 
by STATE pursuant to 5 CFR 831.1801-1808.
    (6) Expedited offset. STATE may effect an offset against a debtor 
prior to sending a notice to the debtor as described in Sec.  34.8, 
when:
    (i) The offset is in the nature of a recoupment,
    (ii) Offset is executed pursuant to procedures set out in the 
Contracts Disputes Act,
    (iii) Previous notice and opportunity for review have been given, or
    (iv) There is insufficient time before payment would be made to the 
debtor/payee to allow prior notice and an opportunity for review. In 
such case, STATE shall give the debtor notice and an opportunity for 
review as soon as practicable and shall promptly refund any money 
ultimately found not to have been owed to the Government.
    (7) Unless otherwise provided by law, administrative offset of 
payments under the authority of 31 U.S.C. 3716 to collect a debt may not 
be conducted more than 10 years after the Government's right to collect 
the debt first accrued, unless facts material to the Government's right 
to collect the debt were not known and could not reasonably have been 
known by the official charged with the responsibility to discover and 
collect such debts. This limitation does not apply to debts reduced to a 
judgment.
    (b) Referral to private collection agency. STATE may contract for 
collection services to recover delinquent debts, or transfer a 
delinquent debt to FMS for private collection action, pursuant to 31 
U.S.C. 3718, 22 U.S.C. 2716 and the FCCS, 31 CFR 901.5, as applicable. 
STATE will not use a collection agency to collect a debt owed by a 
currently employed or retired Federal employee, if collection by salary 
or annuity offset is available.
    (c) Disclosure to consumer reporting agencies. STATE may disclose 
delinquent debts to consumer reporting agencies and other automated 
databases in accordance with 31 U.S.C. 3711(e) and the FCCS, 31 CFR 
901.4, and in compliance with the Bankruptcy Code and the Privacy Act 5 
U.S.C. 552a.
    (d) Liquidation of Collateral, if applicable, in accordance with the 
FCCS, 31 CFR 901.7.
    (e) Suspension or revocation of eligibility for loans and loan 
guaranties, licenses, permits, or privileges in accordance with the 
FCCS, 31 CFR 901.6.

[[Page 125]]

    (f) Litigation. Debts may be referred to the Department of Justice 
for litigation for collection in accordance with the standards set forth 
in the FCCS, 31 CFR part 904.
    (g) Transfer to FMS. Debts delinquent more than 180 days shall be 
transferred to the Financial Management Service of the Department of the 
Treasury for collection by all available means. Debts delinquent less 
that 180 days may also be so transferred.
    (h) Administrative wage garnishment. STATE may collect debts from a 
non-Federal employee's wages by means of administrative wage garnishment 
in accordance with the requirements of 31 U.S.C. 3720D and 31 CFR 
285.11. All parts of 31 CFR 285.11 are incorporated by reference into 
these regulations, including the hearing procedures described in 31 CFR 
285.11(f).
    (i) Salary offset. See subpart C of this part.