Appendix 17

OFFSET LETTERS

This appendix outlines the contents for and provides examples of

offset letters to be sent to debtors. These include:

Letter Type Sent By

Notice of Intent to Collect By Salary Offset CCO

\-- Contents

\-- Example

Written Certification Requesting DCO

Commencement of Salary Offset

\-- Example

Notice of Intent to Collect by Administrative CCO

Offset

\-- Contents

\-- Example

Page 1 of 10 OCT 26 1987

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Appendix 17

Notice of Intent to Collect by Salary Offset

CONTENTS

Debtor\'s Name

Debtor\'s Current

Address, ZIP Code

Dear Debtor\'s Name:

Subject: Notice of Intent to Collect by Salary Offset

Claim No. number

Social Security No.- number

Date of the Debt - date

Paragraph(s) re:

o That the Claims Collection Officer (CCO) has reviewed

the records relating to the claim and has determined

that a debt is owed, its amount, and the facts giving

rise to it;

o The Department\'s intention to collect the debt by

salary offset until the debt and all accumulated

interest are paid in full;

o The amount, frequency, approximate beginning date, and

duration of the intended deductions;

o The date when interest starts to accrue and the

interest rate;

o The employee\'s right to inspect and copy Departmental

records related to the debt and instructions on how to

exercise that right by contacting the Departmental

Claims Officer;

o The employee\'s right to enter into a written

repayment agreement, so long as the terms of the

agreement proposed by the employee are agreeable to

the CCO;

o The employee\'s right to a hearing by HUD\'s

Administrative Law Judge on the CCO\'s determination of

the debt, the amount of the debt, or percentage of

disposable pay to be deducted each pay period, so long

as a petition requesting a hearing is filed by the

employee within 20 days from the date of the Notice of

Intent;

o The method for requesting a hearing;

o That the timely filing of a petition for a hearing

will stay the salary offset;

OCT 26 1987

Page 2 of 10

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Appendix 17

Notice of Intent to Collect by Salary Offset

CONTENTS (concluded)

o That a final decision on the hearing will be issued within

60 calendar days after the filing of the petition for

hearing unless there is a delay in the proceedings;

o That any knowingly false or frivolous statements or

evidence submitted by the employee may subject the

employee to disciplinary proceedings and civil and

criminal penalties;

o Any other rights and remedies available to the employee

under statutes or regulations governing the program for

which offset is being made; and

o That amounts deducted for the debt which are later waived

or found not owed to the United States Government will be

promptly refunded.

Closing statement including the name and phone number of a contact

person (this should be the CCO).

Sincerely,

Signed

Claims Collection Officer

Enclosure an invoice should be sent with this letter

Page 3 of 10 OCT 26 1987

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Appendix 17

Notice of Intent to Collect by Salary Offset

EXAMPLE

Ms. June Debtor

123 Any Street

Somewhere, USA 00000-0000

Dear Ms. Debtor:

Subject: Notice of Intent to Collect by Salary Offset

Claim No. - number

Social Security No. - number

Date of the Debt - date

By letters dated date , date , and date , you were notified

that you must pay to the Department of Housing and Urban Development

(HUD) the amount of money amount to satisfy an indebtedness

described in a letter dated date , which is enclosed. We suggested

monthly payments if you were unable to pay the indebtedness in full.

You have not indicated your willingness to establish or continue to

pay on a repayment plan; therefore, we now find it necessary to

resort to other actions.

You are currently employed by the name of employee\'s agency

and it is the Secretary\'s intention to collect the debt and all

accumulated interest by offset not to exceed 15 percent of your

disposable income per pay period until the delinquencies of amount

as of date , with interest accruing at the rate of 7 percent per

annum, and all accumulated interest are paid in full. Interest will

continue to accrue until the obligation has been satisfied.

We will refer your account to our office name 30 days from

the date of this letter, unless you request a hearing. You have the

right to inspect and copy any or all Departmental records relating to

this debt and to enter into a written agreement with the Secretary to

repay this debt, so long as the terms of the repayment agreement

proposed are agreeable to the Secretary. Any such proposal or

request to inspect or copy records must be submitted within 20 days

from the date of this letter to:

Departmental Claims Officer

Office of Finance and Accounting

Attention: Insurance Accounting Division

Department of Housing and Urban Development

451 7th Street, S.W., Room 3218

Washington, DC 20410

You have the right to a hearing on the determination by the

Department concerning the existence or amount of this debt. If you

OCT 26 Page 4 of 10

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Appendix 17

Notice of Intent to Collect by Salary Offset

EXAMPLE (concluded)

desire a hearing, you must file a petition within 20 days of the

date of this letter with the Clerk, Office of the Chief

Administrative Law Judge, Room 2158, Department of Housing and Urban

Development, 451 7th Street, S.W., Washington, DC 20410-0050. A copy

of the petition should be sent to the Program Compliance and

Enforcement Division, Room 10240, Department of Housing and Urban

Development, 451 7th Street, S.W., Washington, DC 20410-0050. The

petition should admit or deny the existence of the amount of the

debt, briefly setting forth any basis for denial. Any petition for a

hearing will stay collection proceedings.

A final decision on the hearing will be issued in approximately

60 days after the filing of the petition requesting the hearing.

Any false statements or representations you make may subject

you to disciplinary procedures and/or civil or criminal penalties

under the applicable statutory authority.

Any amounts paid on or deducted for the debt that are later

waived or found not owed to the United States will be promptly

refunded.

The above action is being taken pursuant to Title 5 USC 5514(a)

and the implementing regulations at [24 CFR
17](http://www.gpoaccess.gov/cfr/index.html).125-17.140.

Should you have any questions, please contact me on phone

number .

Sincerely,

Signed

Claims Collection Officer

Enclosure

Page 5 of 10 OCT 26 1987

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Appendix 17

Written Certification Requesting Commencement of Salary Offset

EXAMPLE

Federal Government Agency

Address, ZIP Code

Dear Debtor\'s Name:

Subject: Salary Offset

Name of debtor

Claim No. - number

Social Security No. - number

Date of Debt - date

The employees whose name appears above has been identified as

in default on repayment of a debt arising from his/her

participation in program of the Department of Housing and Urban

Development (HUD) and has also been identified as an employee of your

agency. Please accept this document as certification that all steps

indicated below have been taken, in accordance with the Debt

Collection Act of 1982 and the Department\'s Salary Offset

Regulations, [24 CFR Part 17](http://www.gpoaccess.gov/cfr/index.html),
to assure that all due process rights

have been accorded.

Name of debtor is indebted to the Department in the amount of

money amount plus accrued interest, because he/she failed to

satisfy the terms and conditions of a Service and Reimbursement

Agreement with HUD. While an employee of this Department, name of

debtor accepted a transfer to the office name and agreed to

complete at least one year of service in that office. However,

he/she resigned after approximately 5 months of service. In the

meantime, he/she had been reimbursed for travel expenses in the

amount of amount . Name of debtor entered into a repayment

agreement and paid amount , but then failed to continue making

payments, causing the associated Promissory Note Containing Agreement

for Judgement to be defaulted on date . Interest has been accruing

since this time.

Pursuant to 5 USC Section 5514 and in 24 CFR 17.128 name of

debtor was provided with a Notice of Intent to Collect by Salary

Offset on date which gave notice of the debt, the facts giving

rise to the debt, and the Secretary\'s intention to collect the debt

by means of deduction. The employee was informed of his/her right

to inspect and copy Departmental records relating to the debt, the

opportunity to enter into a repayment agreement with the Secretary,

and the opportunity to request a hearing (Notice is enclosed). The

employee did not notify the Department of his/her election of any

of these procedures within the time period prescribed in the

regulations.

OCT 26 1987 Page 6 of 10

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Appendix 17

Therefore, per interim Salary Offset Regulations published on

August 14, 1984 (effective October 10, 1984), I am requesting that

you initiate the offset of the identified employee\'s disposable pay

at the rate of 15 (fifteen) percent per pay period, starting with the

next official pay period, until the total amount has been recovered.

The total amount that is to be recovered via this offset is amount

plus accrued interest at the rate of percent % per annum. When the

debt has been paid in full, you will be notified by this Department.

Disposable pay, for purposes of this offset, has been

identified as the amount that remains from an employee\'s federal pay

after required deductions for Federal, State, and local income taxes;

Social Security taxes, including Medicare taxes; federal retirement

programs; premiums for life and health insurance benefits; and such

other deductions that are required by law to be withheld as per 24

CFR 17.60(b).

You should remit the withheld funds to:

Departmental Claims Officer

Office of Finance and Accounting

Attention: Insurance Accounting Division

Department of Housing and Urban Development

451 7th Street, S.W., Room 3218

Washington, DC 20410

In order that the payment be properly credited, please include

the employee\'s name, Social Security number, and claim number (as

referenced above). Note \"Salary Offset\" on the payment.

The Department\'s regulations implementing USC 5514 have been

approved by the Office of Personnel Management.

Sincerely,

Signed

Departmental Claims Officer

Enclosure

Page 7 of 10 OCT 26 1987

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Appendix 17

Notice of Intent to Collect by Administrative Offset

CONTENTS

Debtor\'s Name

Debtor\'s Current

Address, Zip Code

Subject: Notice of Intent to Collect by Administrative Offset

Claim No. - number

Social Security No. - number

Date of the Debt - date

Dear Debtor\'s Name :

Paragraph(s) re:

o The nature and amount of the debt;

o The Department\'s intention to collect the debt by

administrative offset until the debt and all

accumulated interest and other charges are paid in

full;

o The debtor\'s right to review of the Action Official\'s

initial determination of indebtedness by the Deputy

Assistant Secretary for the program owned the debt, or

his/her designee, and instructions on how to exercise

that right by contracting the Regional Claims

Collection Officer; (RCCO);

o The debtor\'s right to inspect and copy Departmental

records related to the debt and instructions on how

to exercise that right by contacting the RCCO:

o The debtor\'s right to enter into a written repayment

agreement, so long as the terms of the agreement

proposed by the debtor are agreeable to the Claims

Collection Officer (CCO).

Closing statement including the name and phone number of a

contact person (this should be the CCO).

Sincerely,

Signed

Claims Collection Officer

Enclosure an invoice should be sent with this letter

OCT 26 1987 Page 8 of 10

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Appendix 17

Notice of Intent to Collect by Administrative Offset

EXAMPLE

Ms. June Debtor

123 Any Street

Somewhere, USA 00000-0000

Subject: Notice of Intent to Collect by Administrative Offset

Claim No. - number

Social Security No. - number

Date of the Debt - date

Dear Ms. Debtor:

By letters dated date , date , and date , you were notified

that you must pay to Department of Housing and Urban Development

(HUD) the amount of money amount to satisfy an indebtedness

described in a letter dated date , which is enclosed.

notwithstanding these demands, you have failed to make any payment on

this obligation. Accordingly, it is necessary to notify you of our

intent to seek collection through administrative offset against

amounts payment to you from the Civil Service Retirement and

Disability fund.

Please note the following:

1\. The amount and nature of the debt are set forth in

the enclosed letter of date , and enclosures

thereto.

2\. Interest on the amount due will be charged at the

rate of 7 percent per annum beginning with the date

the debt was established and terminating when payment

is made or retirement account offset for the full

amount due has occurred. Full payment within 30 days

of the date of this letter with result in waiver of

the interest payment to be accrued.

3\. HUD intends to collect the debt by administrative

offset until the debt and all accumulated interest

are paid in full.

4\. You have a right to obtain review of the

determination of indebtedness. In accordance with 24

CFR 17.104, you may obtain such review by sending a

letter within 20 days of this Notice to name ,

Regional Claims Collection Officer, Department of

Housing and Urban Development, address . You should

include all documentation you would like to have

considered in review of this debt. Unless there is a

basis for an oral hearing under 24 CFR 17.108, the

review will be of the documentary evidence.

Page 9 of 10 OCT 26 1987

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Appendix 17

Notice of Intent to Collect by Administrative Offset

EXAMPLE (concluded)

5\. You have a right to inspect and copy HUD records

related to the debt. If you would like to do so, you

must notify the Regional Claims Collection Officer in

writing within 20 days of this Notice. Upon receipt

by this office of such a request, we will notify you

as to the time and place for inspection and copying in

accordance with 24 CFR 17.105.

6\. You may enter into a written agreement with HUD to

repay the debt, so long as the terms of the repayment

agreement proposed by you are agreeable to HUD.

Interest at the rate of 7 percent per annum will be

assessed on the unpaid balance of any installment

payment agreement. As provided in 24 CFR 17.106, a

proposed agreement must be submitted to the Regional

Administrator within 20 days of the date of this

Notice.

This Notice is issued pursuant to HUD\'s administrative offset

regulations which are in 24. CFR 17.100 through 17.117, a copy of

which is enclosed; General Accounting Office regulations published at

24 CFR Part 102; 49 Federal Register 8889, March 9, 1984; and Office

of Personnel Management regulations published at 5 CFR Part 831,

Subpart R.

If you have any questions, please contact me on phone number .

Sincerely,

Signed

Regional Claims Collection Officer

Enclosure

OCT 26 1987

Page 10 of 10

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