PART 11—CLAIMS Authority: 5 U.S.C. 301, 5514; 26 U.S.C. 6402, 31 U.S.C. 3701, 3711, 3716, 3717, 3718, 3720A, 3720B, 3720D; Pub. L. 107-296, 116 Stat. 2135 (6 U.S.C. 1 et seq. Source: 72 FR 4190, Jan. 30, 2007, unless otherwise noted. Subpart A—Debt Collection § 11.1 General application. (a) Application of Debt Collection Standards. (b) Authority. (c) Application to DHS. (d) Exclusions. (e) Non-exclusive procedure or remedy. (f) Additional policies and procedures. (g) Duplication not required. (h) No private rights created. § 11.2 Definitions. In addition to the definitions provided in 31 CFR parts 285, 900-904, as used in this subpart: (a) Department of Homeland Security DHS (b) DHS debt (c) Secretary § 11.3 Demand for payment. (a) Notice requirements. (b) Exceptions to notice requirements. § 11.4 Collection by administrative offset. (a) General Provisions for Offset. (b) Centralized Offset through the Treasury Offset Program. (c) Non-centralized Offset for DHS Debts. (d) Hearing Procedures for Federal Employees Request for a hearing. (2) Failure to submit timely request for hearing. (3) Hearing official. (4) Notice of hearing. (5) Oral hearing. (i) Informal conferences with the hearing official, in which the employee and agency representative will be given full opportunity to present evidence, witnesses and argument; (ii) Informal meetings with an interview of the employee by the hearing official; or (iii) Formal written submissions, with an opportunity for oral presentation. (6) Paper hearing. (7) Failure to appear or submit documentary evidence. (8) Burden of proof. (9) Record. (10) Date of decision. (11) Content of decision. (i) A statement of the facts presented to support the origin, nature, and amount of the debt; (ii) The hearing official's findings, analysis, and conclusions; and (iii) The terms of any repayment schedules, if applicable. (12) Final agency action. (f) Waiver not precluded. (g) Salary offset process Determination of disposable pay. (2) Amount of salary offset. (i) If the amount of the debt is equal to or less than 15 percent of the disposable pay, such debt generally is collected in one lump sum payment; or (ii) Installment deductions are made over a period of no greater than the anticipated period of employment. An installment deduction will not exceed 15 percent of the disposable pay from which the deduction is made unless the employee has agreed in writing to the deduction of a greater amount or the creditor agency has determined that smaller deductions are appropriate based on the employee's ability to pay. (3) Final salary payment. (h) Payment agency's responsibilities. (2) If the employee is already separated from employment and all payments due from his or her former payment agency have been made, DHS may request that money due and payable to the employee from the Civil Service Retirement Fund and Disability Fund, the Federal Employee Retirement System, or other similar funds, is administratively offset to collect the debt. Generally, DHS will collect such monies through the Treasury Offset Program as described in this section. (3) When an employee transfers to another agency, DHS should resume collection with the employee's new payment agency in order to continue salary offset. § 11.5 Administrative wage garnishment. DHS may collect debts from a debtor's wages by means of administrative wage garnishment in accordance with the requirements of 31 U.S.C. 3720D under the procedures established in 31 CFR 285.11. § 11.6 Reporting debts. DHS will report delinquent debts to credit bureaus and other automated databases in accordance with 31 U.S.C. 3711(e), 31 CFR 901.4, and the Office of Management and Budget Circular A-129, “Policies for Federal Credit Programs and Non-tax Receivables,” which may be found at http://www.fms.treas.gov/debt. § 11.7 Private collection agencies. DHS will transfer delinquent DHS debts to the Treasury Department's Financial Management Service to obtain debt collection services provided by private collection agencies. § 11.8 Suspension or revocation of eligibility for loans and loan guarantees, licenses, permits, or privileges. The authority to extend financial assistance in the form of a loan, loan guarantee, or loan insurance to any person delinquent on a nontax debt owed to DHS is delegated to the Chief Financial Officer. § 11.9 Collection in installments. DHS may accept payment of a DHS debt in regular installments, in accordance with the provisions of 31 CFR 901.8 and policies and procedures adopted by the Chief Financial Officer (CFO). The CFO will consult the Office of General Counsel regarding a legally enforceable written agreement from the debtor. § 11.10 Interest, penalty charges, and administrative costs. (a) Assessment and notice. (b) Waiver of interest, penalties, and administrative costs. (c) Accrual during suspension of debt collection. § 11.11 Compromise. DHS may compromise a debt in accordance with the provisions of 31 CFR part 902. The Chief Financial Officer is authorized to compromise debts owed to DHS. No debt over $10,000 may be compromised without the concurrence of the Office of the General Counsel. § 11.12 Suspending or terminating collection activity. DHS will suspend or terminate collection activity, or discharge indebtedness, in accordance with 31 CFR part 903. The Chief Financial Officer is delegated authority to suspend or terminate collection activity, or to discharge indebtedness regarding debts owed to DHS, but for any such action involving a debt over $10,000, the Chief Financial Officer must obtain the concurrence of the Office of the General Counsel. The Chief Financial Officer is authorized to act on behalf of the Secretary in selling a debt, and in determining whether or not it is in the best interests of the United States to do so. § 11.13 Referrals to the Department of Justice. Referrals of debts to the Department of Justice for collection will be by the General Counsel. § 11.14 Receipt of offset requests by other Federal agencies. Other Federal agencies send non-centralized offset requests to DHS at: U.S. Department of Homeland Security, Attn: Chief Financial Officer, Mail Stop 0200, Washington, DC 20528-0200. Those agencies must comply with 31 CFR 901.3 when forwarding the requests to DHS. DHS does not review the merits of the creditor agency's determination with regard to the existence or the amount of the debt. When two or more agencies are seeking offsets from payments made to the same person, or when two or more debts are owed to a single creditor agency, DHS may determine the order in which the debts will be collected or whether one or more debts should be collected by offset simultaneously. For the purposes of this section, debts owed to DHS generally take precedence over debts owed to other agencies, but DHS may pay a debt to another agency prior to collecting for DHS. DHS determines the order of debt collection based upon the best interests of the United States. § 11.15 Applying the debt against DHS payments. (a) Notice to the Debtor. (b) Notice to the debtor. (c) Transfer of employee debtor to another Federal agency. Subpart B [Reserved]