[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: 22CFR34.9]

[Page 123-124]
 
                       TITLE 22--FOREIGN RELATIONS
 
                     CHAPTER I--DEPARTMENT OF STATE
 
PART 34_DEBT COLLECTION--Table of Contents
 
                      Subpart B_Collection Actions
 
Sec.  34.9  Requests for internal administrative review.

    (a) For all collection methods for debts owed to STATE, the debtor 
may request a review within State of the existence or the amount of the 
debt. For offset of current Federal salary under 5 U.S.C. 5514 for 
certain debts, debtors may also request an outside hearing. See subpart 
C of this part. This subpart rather than subpart C applies to 
collections by salary offset for debts arising under 5 U.S.C. 5705 
(travel advances), 5 U.S.C. 4108 (training expenses), and other statutes 
specifically providing for collection by salary offset.
    (b) A debtor requesting an internal review shall do so in writing to 
the contact office by the payment due date stated within the initial 
notice sent under 34.8(b) or other applicable provision. The debtor's 
written request shall state the basis for the dispute and include any 
relevant documentation in support.
    (1) STATE will provide for an internal review of the debt by an 
appropriate official. The review may include examination of documents, 
internal discussions with relevant officials and discussion by letter or 
orally with the debtor, at STATE's discretion. An oral hearing may be 
provided when the matter cannot be decided on the documentary record 
because it involves issues of credibility or veracity. Unless otherwise 
required by law, such oral hearing shall not be a formal evidentiary 
hearing. If an oral hearing is appropriate, the time and location of the 
hearing shall be established by STATE. An oral hearing may be conducted, 
at the debtor's option, either in-person or by telephone conference. All 
travel expenses incurred by the debtor in connection with an in-person 
hearing will be borne by the debtor. All telephonic charges incurred 
during the hearing will be the responsibility of STATE. During the 
period of review, STATE may suspend collection activity, including the 
accrual of interest and penalties, on any disputed portion of the debt 
if STATE determines that suspension is in the Department's best interest 
or would serve equity and good conscience.
    (2) If after review STATE either sustains or amends its 
determination, it shall notify the debtor of its intent to collect the 
sustained or amended debt. If previously suspended, collection actions 
will be re-instituted unless payment of the sustained or amended amount 
is received or the debtor has

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made a proposal for a payment plan to which STATE agrees, by the date 
specified in the notification of STATE's decision.