PART 1011—DEBT COLLECTION Authority: 16 U.S.C. 460bb appendix, as amended. Source: 70 FR 73588, Dec. 13, 2005, unless otherwise noted. Subpart A—General Provisions § 1011.1 What definitions apply to the regulations in this part? As used in this part: Administrative offset offset Administrative wage garnishment Agency Federal agency Certification Compromise Creditor agency Debt Debt collection center Debtor Delinquent debt Disposable pay Employee Federal employee FCCS FMS IRS Paying agency Person Private collection contractor Salary offset Tax refund offset Treasury Department Treasury Offset Program § 1011.2 Why is the Presidio Trust issuing these regulations and what do they cover? (a) Scope. (b) Applicability. (2) This part does not apply to tax debts. (3) Nothing in this part precludes collection or disposition of any debt under statutes and regulations other than those described in this part. (c) Additional policies, guidelines and procedures. (d) Duplication not required. (e) Use of multiple collection remedies allowed. (f) Cross-servicing with the Treasury Department. § 1011.3 Do these regulations adopt the Federal Claims Collections Standards? This part adopts and incorporates all provisions of the FCCS. This part also supplements the FCCS by prescribing procedures consistent with the FCCS, as necessary and appropriate for Presidio Trust operations. Subpart B—Procedures To Collect Presidio Trust Debts § 1011.4 What notice will the Presidio Trust send to a debtor when collecting a debt? (a) Notice requirements. (1) The amount, nature and basis of the debt; (2) How interest, penalty charges and administrative costs are added to the debt, the date by which payment should be made to avoid such charges, and that such assessments must be made unless waived (see § 1011.5 of this part); (3) The date by which payment is due and that the debt will be considered delinquent if payment is not received by the Presidio Trust by the due date, which date will not be less than 30 days after the date of the notice, and the date by which payment must be received by the Presidio Trust to avoid the enforced collection actions described in paragraph (a)(6) of this section, which date will not be less than 60 days after the date of the notice; (4) How the debtor may enter into a written agreement to repay the debt voluntarily under terms acceptable to the Presidio Trust (see § 1011.6 of this part); (5) The name, address and telephone number of a contact person within the Presidio Trust; (6) The Presidio Trust's intention to enforce collection if the debtor fails to pay or otherwise resolve the debt, by taking one or more of the following actions: (i) Use administrative offset or other offset to offset the debtor's federal payments, including, without limitation, income tax refunds, salary, certain benefit payments (such as Social Security), retirement, vendor, travel reimbursements and advances, and other federal payments (see § 1011.10 through 1011.12 of this part); (ii) Refer the debt to a private collection agency (see § 1011.15 of this part); (iii) Report the debt to a credit bureau (see § 1011.14 of this part); (iv) Garnish the debtor's wages through administrative wage garnishment (see § 1011.13 of this part); (v) Refer the debt to the Department of Justice to initiate litigation to collect the debt (see § 1011.16 of this part); (vi) Refer the debt to the FMS for collection (see § 1011.9 of this part); (7) The following timelines for the referral of a delinquent debt to the FMS: (i) That debts over 120 days delinquent and eligible for the centralized administrative offset collection actions described in paragraph (a)(6)(i) of this section must be referred to the FMS for collection (see §§ 1011.10 through 1011.12); (ii) That debts over 180 days delinquent not previously referred to the FMS under paragraph (a)(7)(i) of this section must be referred to the FMS for cross servicing debt collection (see § 1011.9). (8) How the debtor may inspect and obtain copies of disclosable records related to the debt; (9) How the debtor may request a review of the Presidio Trust's determination that the debtor owes a debt. (10) How a debtor may request a hearing if the Presidio Trust intends to garnish the debtor's non-Federal wages (see § 1011.13(a) of this part), including: (i) The method and time period for requesting a hearing; (ii) That the timely filing of a request for a hearing on or before the 15th business day following the date of the notice will stay the commencement of administrative wage garnishment, but not necessarily other collection procedures; and (iii) The name and address of the office to which the request for a hearing should be sent. (11) How a debtor who is a Federal employee subject to Federal salary offset may request a hearing (see § 1011.12(e) of this part), including: (i) The method and time period for requesting a hearing; (ii) That the timely filing of a request for a hearing on or before the 15th business day following the date of the notice will stay the commencement of salary offset, but not necessarily other collection procedures; (iii) The name and address of the office to which the request for a hearing should be sent; (iv) That the Presidio Trust will refer the debt to the debtor's employing agency or to the FMS to implement salary offset, unless the employee files a timely request for a hearing; (v) That a final decision on the hearing, if requested, will be issued at the earliest practical date, but not later than 60 days after the filing of the request for a hearing, unless the employee requests and the hearing official grants a delay in the proceedings; (vi) That any knowingly false or frivolous statements, representations or evidence may subject the Federal employee to penalties under the False Claims Act (31 U.S.C. 3729-3731) or other applicable statutory authority, and criminal penalties under 18 U.S.C. 286, 287, 1001, and 1002, or other applicable statutory authority; (vii) That unless prohibited by contract or statute, amounts paid on or deducted for the debt which are later waived or found not owed to the United States will be promptly refunded to the employee; and (viii) That proceedings with respect to such debt are governed by 5 U.S.C. 5514 and 31 U.S.C. 3716; (12) That the debtor may request a waiver of the debt; (13) That the debtor's spouse may claim the spouse's share of a joint income tax refund by filing Form 8379 with the IRS; (14) That the debtor may exercise other statutory or regulatory rights and remedies available to the debtor; (15) That the Presidio Trust may suspend or revoke any licenses, permits, leases, privileges or services for failure to pay a debt (see § 1011.17 of this part); and (16) That the debtor should advise the Presidio Trust of a bankruptcy proceeding of the debtor or another person liable for the debt being collected. (b) Exceptions to notice requirements. (c) Respond to debtors. [70 FR 73588, Dec. 13, 2005, as amended at 83 FR 50837, Oct. 10, 2018] § 1011.5 What interest, penalty charges and administrative costs will the Presidio Trust add to a debt? (a) Interest. (2) Interest begins to accrue on all debts from the date the debt becomes delinquent. The Presidio Trust will waive collection of interest on that portion of the debt that is paid within 30 days after the date on which interest begins to accrue. The Presidio Trust will assess interest at the rate established by the Treasury Department under 31 U.S.C. 3717, unless a different rate is established by a contract, repayment agreement or statute. The Presidio Trust will notify the debtor of the basis for the interest rate assessed. (b) Penalty. (c) Administrative costs. (d) Allocation of payments. (e) Additional authority. (f) Waiver. (2) A decision to waive interest, penalties or administrative costs may be made at any time before a debt is paid. However, unless otherwise provided in these regulations, when these charges have been collected before the waiver decision, they will not be refunded. (g) Accrual during suspension of debt collection. [70 FR 73588, Dec. 13, 2005; 71 FR 2109, Jan. 12, 2006] § 1011.6 When will the Presidio Trust allow a debtor to enter into a repayment agreement? (a) Voluntary repayment. (b) Debtor's request. (1) Be in writing; (2) Admit the existence of the entire debt; and (3) Either propose payment of the debt (together with interest, penalties and administrative costs) in a lump sum, or set forth a proposed repayment schedule. (c) Repayment schedule. (d) Repayment agreement. § 1011.7 When will the Presidio Trust compromise a debt? (a) Authority. (b) Report to IRS. § 1011.8 When will the Presidio Trust suspend or terminate debt collection on a debt? If, after pursuing all appropriate means of collection, the Presidio Trust determines that a debt is uncollectible, the Presidio Trust may suspend or terminate debt collection activity in accordance with the FCCS and the Presidio Trust's procedures. § 1011.9 When will the Presidio Trust transfer a debt to the Financial Management Service for collection? (a) Cross-servicing. (b) Notice; certification. (c) Treasury Offset Program. [70 FR 73588, Dec. 13, 2005, as amended at 83 FR 50838, Oct. 10, 2018] § 1011.10 How will the Presidio Trust use administrative offset (offset of non-tax federal payments) to collect a debt? (a) Centralized administrative offset through the Treasury Offset Program. (2) At least 60 days prior to referring a debt to the Treasury Offset Program, in accordance with paragraph (a)(1) of this section, the Presidio Trust will send notice to the debtor in accordance with the requirements of § 1011.4 of this part. The Presidio Trust will certify to the FMS, in writing, that the debt is valid, delinquent, legally enforceable and that there are no legal bars to collection by offset. In addition, the Presidio Trust will certify its compliance with the due process requirements under 31 U.S.C. 3716(a) and with the requirements described in this part. (b) Non-centralized administrative offset for a debt. (2) At least 30 days prior to offsetting a payment internally or requesting a federal paying agency to offset a payment, the Presidio Trust will send notice to the debtor in accordance with the requirements of § 1011.4 of this part. When referring a debt for offset under this paragraph (b), the Presidio Trust will certify, in writing, that the debt is valid, delinquent, legally enforceable and that there are no legal bars to collection by offset. In addition, the Presidio Trust will certify its compliance with the due process requirements under 31 U.S.C. 3716(a) and with these regulations concerning administrative offset. (c) Administrative review. (d) Procedures for expedited offset. [70 FR 73588, Dec. 13, 2005, as amended at 83 FR 50838, Oct. 10, 2018] § 1011.11 How will the Presidio Trust use tax refund offset to collect a debt? (a) Tax refund offset. (b) Notice; certification. (c) Administrative review. § 1011.12 How will the Presidio Trust offset a Federal employee's salary to collect a debt? (a) Federal salary offset. (2) Nothing in this part requires the Presidio Trust to collect a debt in accordance with the provisions of this section if Federal law allows otherwise. (b) Centralized salary offset through the Treasury Offset Program. (c) Non-centralized salary offset for Treasury debts. (d) When prior notice not required. (1) Any adjustment to pay arising out of a Presidio Trust employee's election of coverage or a change in coverage under a Federal benefits program requiring periodic deductions from pay, if the amount to be recovered was accumulated over four pay periods or fewer; (2) A routine intra-agency adjustment of pay that is made to correct an overpayment of pay attributable to clerical or administrative errors or delays in processing pay documents, if the overpayment occurred within the four pay periods preceding the adjustment, and, at the time of such adjustment, or as soon thereafter as practical, the individual is provided written notice of the nature and the amount of the adjustment and point of contact for contesting such adjustment; or (3) Any adjustment to collect a debt amounting to $50 or less, if, at the time of such adjustment, or as soon thereafter as practical, the individual is provided written notice of the nature and the amount of the adjustment and a point of contact for contesting such adjustment. (e) Hearing procedures. Request for a hearing. (2) Failure to submit timely request for hearing. (3) Hearing official. (4) Notice of hearing. (5) Oral hearing. (6) Paper hearing. (7) Date of decision. (8) Final agency action. (f) Salary offset process. Determination of disposable pay. (2) When salary offset begins. (3) Amount of salary offset. (i) If the amount of the debt is equal to or less than 15% of the disposable pay, such debt generally will be collected in one lump sum payment; (ii) Installment deductions will be made over a period of no greater than the anticipated period of employment. An installment deduction will not exceed 15% of the disposable pay from which the deduction is made unless the employee has agreed in writing to the deduction of a greater amount. (4) Final salary payment. § 1011.13 How will the Presidio Trust use administrative wage garnishment to collect a debt from a debtor's wages? (a) Authority and process. (b) Not applicable to federal salary offset. § 1011.14 How will the Presidio Trust report debts to credit bureaus? The Presidio Trust will report delinquent debts to credit bureaus in accordance with the provisions of 31 U.S.C. 3711(e) and the FCCS. At least 60 days prior to reporting a delinquent debt to a consumer reporting agency, the Presidio Trust will send notice to the debtor in accordance with the requirements of § 1011.4 of this part. The Presidio Trust may authorize the FMS to report to credit bureaus those delinquent debts that have been transferred to the FMS under § 1011.9 of this part. § 1011.15 How will the Presidio Trust refer debts to private collection contractors? The Presidio Trust will transfer delinquent debts to the FMS to obtain debt collection services provided by private collection contractors. See § 1011.9 of this part. § 1011.16 When will the Presidio Trust refer debts to the Department of Justice? (a) Compromise or suspension or termination of collection activity. (b) Litigation. § 1011.17 Will a debtor who owes a debt be ineligible for Presidio Trust licenses, permits, leases, privileges or services? Unless prohibited by law, the Presidio Trust may terminate, suspend or revoke licenses, permits, leases (subject to the terms of the leases), or other privileges or services for any inexcusable or willful failure of a debtor to pay a debt. The Presidio Trust may establish guidelines and procedures governing termination, suspension and revocation for delinquent debtors. If applicable, the Presidio Trust will advise the debtor in the notice required by § 1011.4 of this part of the Presidio Trust's ability to suspend or revoke licenses, permits, leases, or privileges or services. § 1011.18 How does a debtor request a special review based on a change in circumstances such as catastrophic illness, divorce, death or disability? (a) Material change in circumstances. (b) Inability to pay. (1) Income from all sources; (2) Assets; (3) Liabilities; (4) Number of dependents; (5) Expenses for food, housing, clothing and transportation; (6) Medical expenses; and (7) Exceptional expenses, if any. (c) Alternative payment arrangement. § 1011.19 Will the Presidio Trust issue a refund if money is erroneously collected on a debt? The Presidio Trust will promptly refund to a debtor any amount collected on a debt when the debt is waived or otherwise found not to be owed to the United States, or as otherwise required by law. Refunds under this part will not bear interest unless required by law. § 1011.20 Will the Presidio Trust's failure to comply with these regulations be a defense to a debt? No, the failure of the Presidio Trust to comply with any standard in the FCCS, these regulations or such other procedures of the Presidio Trust will not be available to any debtor as a defense. Subpart C—Procedures for Offset of Presidio Trust Payments To Collect Debts Owed To Other Federal Agencies § 1011.21 How do other Federal agencies use the offset process to collect debts from payments issued by the Presidio Trust? (a) Offset of Presidio Trust payments to collect debts owed to other Federal agencies. (2) This subpart C does not apply to the collection of debts through tax refund offset. (b) Administrative offset (including salary offset); certification. (c) Where a creditor agency makes requests for offset. (d) Incomplete certification. (e) Review. (f) When the Presidio Trust will not comply with offset request. (g) Multiple debts. (h) Priority of debts owed to the Presidio Trust. § 1011.22 What does the Presidio Trust do upon receipt of a request to offset the salary of a Presidio Trust employee to collect a debt owed by the employee to another Federal agency? (a) Notice to the Presidio Trust employee. (b) Amount of deductions from a Presidio Trust employee's salary. (c) When the debtor is no longer employed by the Presidio Trust Offset of final and subsequent payments. (2) Notice to the creditor agency. (3) Notice to the debtor. (d) When the debtor transfers to another Federal agency Notice to the creditor agency. (2) Notice to the debtor. (e) Request for hearing official.