**COMPARISON OF**

**Obsolete Federal Claims Collection Standards**

**(4 CFR Chapter II Parts 101-105)**

**TO**

**Proposed & Final Federal Claims Collection Standards**

**(31 CFR Chapter IX Parts 900-904)**

> ***[NOTE:]{.underline}*** *This document contains a summary of the
> provisions of the obsolete, proposed & final FCCS. Readers should
> review the actual text of the obsolete, proposed & final FCCS for a
> complete understanding of the information summarized in this
> document.*

**[TABLE OF CONTENTS]{.underline}**

  -------------------------------------------------------------------------
  *Obsolete FCCS*      *Proposed FCCS*        *Final FCCS*        *Pages*
  -------------------- ---------------------- ------------------- ---------
  Part 101 - Scope of  Part 900 - Scope of    Part 900 - Scope of 1 - 2
  Standards            Standards              Standards           

  Part 102 - Standards Part 901 - Standards   Part 901 -          3 - 8
  for the              for the Administrative Standards for the   
  Administrative       Collection of Claims   Administrative      
  Collection of Claims                        Collection of       
                                              Claims              

  Part 103 - Standards Part 902 - Standards   Part 902 -          9 - 10
  for the Compromise   for the Compromise of  Standards for the   
  of Claims            Claims                 Compromise of       
                                              Claims              

  Part 104 - Standards Part 903 - Standards   Part 903 -          10 - 12
  for Suspending or    for Suspending or      Standards for       
  Terminating          Terminating Collection Suspending or       
  Collection Action    Activity               Terminating         
                                              Collection Activity 

  Part 105 - Referrals Part 904 - Referrals   Part 904 -          13
  to Department of     to Department of       Referrals to        
  Justice or GAO       Justice                Department of       
                                              Justice             
  -------------------------------------------------------------------------

+------------------------+-----------------------+--------------------+
| **OBSOLETE FCCS**      | **PROPOSED FCCS**     | **FINAL FCCS**     |
+========================+=======================+====================+
| ***PART 101 - SCOPE OF | ***PART 900 - SCOPE   | ***PART 900 -      |
| STANDARDS***           | OF STANDARDS***       | SCOPE OF           |
|                        |                       | STANDARDS***       |
+------------------------+-----------------------+--------------------+
| **101.1 Prescription   | **900.1 Prescription  | **900.1            |
| of standards**         | of standards**        | Prescription of    |
|                        |                       | standards**        |
| Joint promulgation by  | Joint promulgation by |                    |
| General Accounting     | Treasury & Justice;   | Adopts proposed    |
| Office (GAO) &         | GAO eliminated as a   | rule.              |
| Department of Justice  | co-promulgator        |                    |
| (DOJ)                  |                       | Adds that          |
|                        | Adds reference to     | standards and      |
| FCCS prescribe         | offset                | policies regarding |
| standards for the      |                       | the classification |
| administrative         | Specifies federal     | of debt for        |
| collection,            | agencies included \-- | accounting         |
| compromise,            | executive,            | purposes (write    |
| termination of agency  | legislative,          | off) are in Office |
| collection, and the    | judicial, Government  | of Management and  |
| referral to GAO & DOJ  | corporations          | Budget (OMB)       |
|                        |                       | A-129.             |
| Agencies adopt FCCS    | Adds that claims are  |                    |
| standards; agency      | governed by the       |                    |
| regulations subject to | Bankruptcy Code       |                    |
| GAO review             |                       |                    |
|                        | Updates the list of   |                    |
| Lists other Government | other Government      |                    |
| publications           | publications          |                    |
| containing debt        | containing debt       |                    |
| collection guidance    | collection guidance   |                    |
|                        |                       |                    |
|                        | Additional rules      |                    |
|                        | governing Debt        |                    |
|                        | Collection            |                    |
|                        | Improvement Act of    |                    |
|                        | 1996 (DCIA) offset    |                    |
|                        | and debt collection   |                    |
|                        | provisions will be    |                    |
|                        | published separately  |                    |
|                        |                       |                    |
|                        | Clarifies that        |                    |
|                        | agencies are not      |                    |
|                        | limited to collection |                    |
|                        | remedies contained in |                    |
|                        | the FCCS; FCCS not    |                    |
|                        | intended to impair    |                    |
|                        | common law remedies   |                    |
+------------------------+-----------------------+--------------------+
| **101.2 Definitions**  | **900.2 Definitions   | **900.2            |
|                        | and construction**    | Definitions and    |
| \(a\) Defines Adebt@   |                       | construction**     |
| and Aclaim@            | \(a\) Revises         |                    |
|                        | definition of Adebt@  | Adopts proposed    |
| \(b\) Defines          | and Aclaim@ to        | rule.              |
| Adelinquent@           | conform with DCIA;    |                    |
|                        | includes State,       |                    |
| \(c\) Defines          | Territories & D.C.    |                    |
| Areferral for          | debts (including      |                    |
| litigation@            | past-due child        |                    |
|                        | support) for          |                    |
| \(d\) Clarifies        | administrative offset |                    |
| drafting usage of      | purposes              |                    |
| common terms           |                       |                    |
|                        | \(b\) ADelinquent@    |                    |
|                        | definition unchanged  |                    |
|                        |                       |                    |
|                        | \(c\) Clarifies       |                    |
|                        | drafting usage of     |                    |
|                        | common terms          |                    |
|                        |                       |                    |
|                        | \(d\) Adds definition |                    |
|                        | of Arecoupment@       |                    |
|                        |                       |                    |
|                        | \(e\) Adds definition |                    |
|                        | of ASecretary@ as     |                    |
|                        | Secretary of the      |                    |
|                        | Treasury, or the      |                    |
|                        | Secretary=s delegate  |                    |
|                        |                       |                    |
|                        | AReferral for         |                    |
|                        | litigation@           |                    |
|                        | definition deleted    |                    |
+------------------------+-----------------------+--------------------+
| **101.3 Antitrust,     | **900.3 Antitrust,    | **900.3 Antitrust, |
| fraud, tax, and        | fraud, and tax and    | fraud, and tax and |
| interagency claims     | interagency claims    | interagency claims |
| excluded**             | excluded**            | excluded**         |
|                        |                       |                    |
| \(a\) FCCS do not      | \(a\) Unchanged       | Adopts proposed    |
| apply to collection of |                       | rule.              |
| claims involving       | \(b\) Reworded        |                    |
| violation of antitrust |                       |                    |
| laws, fraud, false     | \(c\) Adds reference  |                    |
| claim, or              | to EO 12146 re        |                    |
| misrepresentation; DOJ | agencies resolving    |                    |
| has exclusive          | disputes; removals    |                    |
| discretion to apply    | referral to GAO       |                    |
| FCCS to such claims    |                       |                    |
|                        |                       |                    |
| \(b\) Excludes tax     |                       |                    |
| claims                 |                       |                    |
|                        |                       |                    |
| \(c\) Excludes claims  |                       |                    |
| between Federal        |                       |                    |
| agencies               |                       |                    |
+------------------------+-----------------------+--------------------+
| **101.4 Compromise,    | **900.4 Compromise,   | **900.4            |
| waiver, or disposition | waiver, or            | Compromise,        |
| under other statutes   | disposition under     | waiver, or         |
| not precluded**        | other statutes not    | disposition under  |
|                        | precluded**           | other statutes not |
| FCCS not intended to   |                       | precluded**        |
| preclude claims        | Unchanged, except     |                    |
| collection under       | deletes language that | Adopts proposed    |
| statutes and           | FCCS should be        | rule.              |
| regulations other than | followed unless       |                    |
| 31 USC 3701 et seq.    | required otherwise by |                    |
|                        | law                   |                    |
+------------------------+-----------------------+--------------------+
| **101.5 Conversion     | **900.5 Form of       | **900.5 Form of    |
| claims**               | payment**             | payment**          |
|                        |                       |                    |
| FCCS covers recovery   | Title change and      | Adopts proposed    |
| of property, in        | reworded; claims may  | rule.              |
| addition to recovery   | be paid in money or   |                    |
| of money               | property, if          |                    |
|                        | contractually         |                    |
|                        | authorized            |                    |
+------------------------+-----------------------+--------------------+
| **101.6 Subdivision of | **900.6 Subdivision   | **900.6            |
| claims not             | of claims not         | Subdivision of     |
| authorized**           | authorized**          | claims not         |
|                        |                       | authorized**       |
| Agencies may not       | Reflects statutory    |                    |
| subdivide claims to    | increase in agencies= | Adopts proposed    |
| avoid requirement that | authority to          | rule.              |
| claims over \$20,000   | \$100,000, or such    |                    |
| be referred to DOJ for | higher amount as the  |                    |
| litigation, compromise | Attorney General may  |                    |
| or suspension or       | prescribe             |                    |
| termination of         |                       |                    |
| collection activity    |                       |                    |
+------------------------+-----------------------+--------------------+
| **101.7 Required       | **900.7 Required      | **900.7 Required   |
| administrative         | administrative        | administrative     |
| proceedings**          | proceedings**         | proceedings**      |
|                        |                       |                    |
| FCCS not intended to   | Reworded              | Adopts proposed    |
| supersede or duplicate |                       | rule.              |
| administrative         |                       |                    |
| collection proceedings |                       |                    |
| required by contract   |                       |                    |
| or other laws          |                       |                    |
+------------------------+-----------------------+--------------------+
| **101.8 Omissions not  | **900.8 No private    | **900.8 No private |
| a defense**            | rights created**      | rights created**   |
|                        |                       |                    |
| An agency=s failure to | Title changed and     | Adopts proposed    |
| comply with the FCCS   | reworded              | rule.              |
| is not available as a  |                       |                    |
| defense to debtors     |                       |                    |
+------------------------+-----------------------+--------------------+
| ***PART 102 -          | ***PART 901 -         | ***PART 901 -      |
| STANDARDS FOR THE      | STANDARDS FOR THE     | STANDARDS FOR THE  |
| ADMINISTRATIVE         | ADMINISTRATIVE        | ADMINISTRATIVE     |
| COLLECTION OF          | COLLECTION OF         | COLLECTION OF      |
| CLAIMS***              | CLAIMS***             | CLAIMS***          |
+------------------------+-----------------------+--------------------+
| **102.1 Aggressive     | **901.1 Aggressive    | **901.1 Aggressive |
| agency collection      | agency collection     | agency collection  |
| action**               | activity**            | activity**         |
|                        |                       |                    |
| \(a\) Agencies shall   | \(a\) Reference to    | Adopts proposed    |
| take aggressive action | GAO removed and       | rule.              |
| to collect claims; DOJ | reference to Treasury |                    |
| or GAO not required to | and                   |                    |
| duplicate agencies=    | Treasury-designated   |                    |
| collection actions     | debt collection       |                    |
|                        | centers added;        |                    |
| \(b\) Agencies         | clarifies that FCCS   |                    |
| expected to cooperate  | applies to agencies   |                    |
| with each other in     | collecting their own  |                    |
| debt collection        | debt or debt referred |                    |
| activities             | for debt collection   |                    |
|                        | services              |                    |
|                        | (cross-servicing)     |                    |
|                        |                       |                    |
|                        | \(c\) Mandates        |                    |
|                        | cooperation among     |                    |
|                        | agencies              |                    |
|                        |                       |                    |
|                        | Adds reference to     |                    |
|                        | DCIA debt collection  |                    |
|                        | provisions:           |                    |
|                        |                       |                    |
|                        | \(b\) Debts referred  |                    |
|                        | or transferred to     |                    |
|                        | Treasury-designated   |                    |
|                        | debt collection       |                    |
|                        | center for collection |                    |
|                        | are serviced in       |                    |
|                        | accordance with       |                    |
|                        | statutory             |                    |
|                        | requirements          |                    |
|                        |                       |                    |
|                        | \(d\) Agencies should |                    |
|                        | consider referral of  |                    |
|                        | debts less than 180   |                    |
|                        | days delinquent to    |                    |
|                        | Treasury-designated   |                    |
|                        | debt collection       |                    |
|                        | centers               |                    |
|                        |                       |                    |
|                        | \(e\) Debts 180+ days |                    |
|                        | delinquent must be    |                    |
|                        | transferred to        |                    |
|                        | Treasury for          |                    |
|                        | collection; DCIA      |                    |
|                        | exemptions listed     |                    |
|                        |                       |                    |
|                        | \(f\) Agencies        |                    |
|                        | authorized to deduct  |                    |
|                        | fees for              |                    |
|                        | cross-servicing from  |                    |
|                        | collections; fees may |                    |
|                        | be added to debt as   |                    |
|                        | administrative cost   |                    |
+------------------------+-----------------------+--------------------+
| **102.2 Demand for     | **901.2 Demand for    | **901.2 Demand for |
| payment**              | payment**             | payment**          |
|                        |                       |                    |
| \(a\) Demand letter    | \(a\) Demand letter   | Adopts proposed    |
| requirements,          | requirements modified | rule.              |
| generally 3            | to discretion of the  |                    |
| progressively stronger | agency; suggestion    | (b)(3) Amended to  |
| demand letters; if     | that 1 letter         | clarify that the   |
| necessary to protect   | generally sufficient  | term Alate         |
| Government=s interest, |                       | charges@ refers to |
| legal action may       | \(b\) & (c) Adds      | interest,          |
| precede demand         | inclusion of agency   | penalties, and     |
|                        | contact in demand     | administrative     |
| \(b\) General content  | letter                | costs.             |
| of demand letter,      |                       |                    |
| including basis for    | \(d\) Demand letter   |                    |
| indebtedness, rights   | should also include   |                    |
| of debtor, standards   | new DCIA requirements |                    |
| for assessment of      | and authorities, such |                    |
| interest, penalties    | as transfer or        |                    |
| and costs, and payment | referral of debt to   |                    |
| due date               | Treasury and          |                    |
|                        | Treasury-designated   |                    |
| \(c\) Demand letter    | debt collection       |                    |
| should include:        | centers;              |                    |
| agencies= willingness  | administrative,       |                    |
| to consider repayment  | salary & tax refund   |                    |
| alternatives, policies | offset remedies;      |                    |
| re use of credit       | administrative        |                    |
| bureau reporting and   | garnishment           |                    |
| collection services,   |                       |                    |
| intent to litigate,    | \(e\) Unchanged from  |                    |
| debtors= rights to     | former (d)            |                    |
| waiver, if any         |                       |                    |
|                        | \(f\) Reworded from   |                    |
| \(d\) Agencies should  | former (e)            |                    |
| respond to debtors=    |                       |                    |
| communications within  | \(g\) Adds Executive  |                    |
| 30 days and advise     | Order 12988           |                    |
| debtor to submit       | requirement that      |                    |
| evidence to support    | debtors be informed   |                    |
| contentions            | of agencies= intent   |                    |
|                        | to refer to DOJ for   |                    |
| \(e\) Coordination of  | litigation            |                    |
| demand letters with    |                       |                    |
| offset notice          | \(h\) Adds            |                    |
| requirements           | requirement that      |                    |
|                        | agencies consider     |                    |
|                        | Bankruptcy Code       |                    |
|                        | requirements for      |                    |
|                        | debtors in bankruptcy |                    |
+------------------------+-----------------------+--------------------+
| **102.3 Collection by  | **901.3 Collection by | **901.3 Collection |
| administrative         | administrative        | by administrative  |
| offset**               | offset**              | offset**           |
|                        |                       |                    |
| \(a\) Administrative   | \(a\) Describes 2     | Redrafted to       |
| offset governed by     | types of              | emphasize that     |
| FCCS and agency=s      | administrative        | disbursing         |
| regulations;           | offset: offset by     | official offset,   |
| collection by offset   | non-disbursing        | which is renamed   |
| required when feasible | officials and offset  | as centralized     |
| and not otherwise      | by disbursing         | administrative     |
| prohibited as          | officials (DCIA); for | offset in the      |
| determined on a        | both types of         | final rule, is the |
| case-by-case basis;    | administrative        | primary            |
| prescribes             | offset, agency        | administrative     |
| circumstances when     | regulations required; | offset collection  |
| offset might not be    | exceptions apply to:  | tool, consistent   |
| appropriate            | (i) claims arising    | with the DCIA.     |
|                        | under Social Security | Non-disbursing     |
| \(b\) Confirms         | Act, (ii) payments    | official           |
| applicability of FCCS  | under Social Security | administrative     |
| to administrative      | Act, except as        | offset process,    |
| offset under 31 USC    | provided for under    | which is renamed   |
| 3716, except as        | DCIA, (iii) claims or | as non-centralized |
| otherwise provided;    | payments under IRC or | administrative     |
| agencies required to   | tariff laws, (iv)     | offset in the      |
| prescribe offset       | salary offset if      | final rule, is a   |
| regulations that       | procedures            | backup procedure   |
| include: appropriate   | inconsistent with     | to be used by      |
| procedural due process | FCCS, (v) judgments   | creditor agencies  |
| rights i.e. notice of  | against U.S. governed | on an *ad hoc*     |
| debt and agency=s      | by 31 USC 3728, (vi)  | case-by-case basis |
| intent to collect by   | offsets specifically  | when centralized   |
| offset and debtor=s    | prohibited (exception | administrative     |
| rights to review       | no longer applies     | offset is          |
| records, to a hearing  | with offset is        | otherwise not      |
| and to enter into      | otherwise Aprovided   | available or       |
| repayment agreement    | for@), (vii) offsets  | appropriate.       |
| (at agency=s           | in the course of      |                    |
| discretion); agencies  | judicial proceedings, | \(a\) Defines      |
| required to establish  | including bankruptcy; | Aadministrative    |
| procedures to offset   | claims against State  | offset@ as having  |
| payments when          | or local Governments  | the same meaning   |
| requested by another   | are now subject to    | provided in DCIA;  |
| agency; offset may not | offset; pre-offset    | sets forth         |
| be initiated more than | notice by agencies    | exceptions to      |
| 10 years after right   | unchanged; agencies   | administrative     |
| to collect has accrued | need not duplicate    | offset and         |
| except under certain,  | due process steps     | describes          |
| limited circumstances; | provided to debtor;   | applicable         |
| debts that may not be  | hearing requirements  | regulations (e.g., |
| collected under 3716   | unchanged; 10-yr.     | Federal benefit    |
| offset include: claims | limitation unchanged  | offset covered in  |
| against State or local |                       | 31 CFR \' 285.4);  |
| Government, debts      | \(b\) Procedures for  | common law offset  |
| arising under Social   | administrative offset | and other types of |
| Security Act, Internal | by non-disbursing     | statutory offset   |
| Revenue Code (IRC) or  | official, i.e. on a   | may be used when   |
| tariff laws, or when   | case-by-case basis;   | applicable;        |
| otherwise provided for | describes when offset | 10-year limitation |
| or prohibited by       | may occur prior to    | unchanged;         |
| statute; common law    | notice to debtor;     | Bankruptcy Code    |
| offset or offset under | agencies required to  | applies to         |
| other authority not    | cooperate and comply  | bankruptcy cases.  |
| precluded; prescribes  | with offset requests  |                    |
| when offset may be     | from other agencies   | \(b\) Procedures   |
| taken prior to notice  |                       | for mandatory      |
|                        | \(c\) DCIA            | centralized        |
| \(c\) Prescribes type  | requirements re       | administrative     |
| of hearing or review   | administrative offset | offset as set      |
| required, when agency  | by disbursing         | forth in proposed  |
| is required to afford  | officials:            | \' 901.3(c);       |
| hearing or review;     |                       | clarified that     |
| oral hearing not       | Disbursing officials  | required due       |
| required unless        | required to offset    | process notice     |
| credibility issues are | payments to collect   | must be Asent@ to  |
| involved               | debts certified to    | debtor, rather     |
|                        | Secretary             | than Areceived@ by |
| \(d\) Agencies should  |                       | debtor.            |
| cooperate and comply   | Agencies will certify |                    |
| with offset requests   | that debts forwarded  | \(c\) Procedures   |
| from other agencies    | to Treasury for       | for                |
|                        | centralized           | non-centralized    |
| \(e\) Offset against   | administrative offset | administrative     |
| judgments against the  | are delinquent and    | offset as set      |
| U.S. governed by 31    | enforceable, and that | forth in proposed  |
| USC 3728               | pre-offset            | \' 901.3(b); to be |
|                        | requirements of 31    | used only when     |
| \(f\) Requires written | USC 3716(a) and       | centralized        |
| certification that     | regulations have been | administrative     |
| agency seeking to      | met                   | offset is not      |
| collect debt by offset |                       | available or       |
| through another agency | Agencies required to  | appropriate.       |
| has complied with      | submit 180+ days      |                    |
| pre-offset             | delinquent debt to    | \(d\) Procedures   |
| requirements           | Treasury for offset   | for referral to    |
|                        |                       | OPM of requests to |
| \(g\) Amounts          | Secretary shall       | offset a debtor=s  |
| recovered by offset    | exempt means-tested   | anticipated or     |
| applied to multiple    | payments from offset  | future benefit     |
| debts in an order of   | when requested; other | payments under the |
| priority in accordance | payments may be       | Civil Service      |
| with the best          | exempted by Secretary | Retirement and     |
| interests of the       | under certain         | Disability Fund    |
| government             | circumstances         | (Fund) payments as |
|                        |                       | set forth in       |
|                        | Benefit payment       | proposed \' 901.4. |
|                        | offsets governed by   | The Fund includes  |
|                        | separate regulations  | payments made      |
|                        |                       | under the Federal  |
|                        | Post-offset notice by | Employee           |
|                        | disbursing officials  | Retirement System. |
|                        | includes offset and   |                    |
|                        | creditor agency       | \(e\) Describes    |
|                        | information           | requirements for   |
|                        |                       | administrative     |
|                        |                       | review as set      |
|                        |                       | forth in proposed  |
|                        |                       | \' 901.3(a).       |
+------------------------+-----------------------+--------------------+
|                        | **901.3 Collection by |                    |
|                        | administrative        |                    |
|                        | offset** (cont.)      |                    |
|                        |                       |                    |
|                        | Debts paid in same    |                    |
|                        | order of priority     |                    |
|                        | based on best         |                    |
|                        | interests of          |                    |
|                        | Government            |                    |
|                        |                       |                    |
|                        | Secretary authorized  |                    |
|                        | to waive certain      |                    |
|                        | Computer Matching Act |                    |
|                        | provisions upon       |                    |
|                        | proper agency         |                    |
|                        | certification         |                    |
|                        |                       |                    |
|                        | Secretary authorized  |                    |
|                        | to enter into         |                    |
|                        | reciprocal agreements |                    |
|                        | with States to        |                    |
|                        | collect State debts   |                    |
|                        | by offset and vice    |                    |
|                        | versa                 |                    |
|                        |                       |                    |
|                        | \(d\) Bankruptcy Code |                    |
|                        | applies to bankruptcy |                    |
|                        | cases                 |                    |
+------------------------+-----------------------+--------------------+
| **102.4 Administrative | **901.4               | **Deleted**        |
| offset against amounts | Administrative offset |                    |
| payable from Civil     | against amounts       | Proposed \' 901.4  |
| Service Retirement and | payable from Civil    | has been merged    |
| Disability Fund**      | Service Retirement    | into revised       |
|                        | and Disability Fund   | \' 901.3 of the    |
| \(a\) Agencies may     | and the Federal       | final rule since   |
| request offset by      | Employee Retirement   | the procedure      |
| Office of Personnel    | System**              | described in       |
| Management (OPM) for   |                       | proposed \' 901.4  |
| former Federal         | \(a\) Adds reference  | is a form of       |
| employees receiving    | to Federal Employee   | non-centralized    |
| retirement or          | Retirement System     | administrative     |
| disability payments    | (FERS); applies only  | offset.            |
|                        | to debts not          |                    |
| \(b\) Agencies must    | collected through     |                    |
| certify that debt is   | Treasury Offset       |                    |
| due and agency has     | Program (salary       |                    |
| complied with salary   | offset expected to    |                    |
| offset requirements    | merge with            |                    |
|                        | administrative and    |                    |
| \(c\) Describes        | tax refund offset by  |                    |
| procedures for         | 1998); may still      |                    |
| maintaining debt       | request directly to   |                    |
| information for        | OPM in certain cases  |                    |
| debtors expected to    |                       |                    |
| receive payments in    | \(b\) & (c) Describes |                    |
| the future             | procedures for        |                    |
|                        | maintaining debt      |                    |
| \(d\) Offset requests  | information for       |                    |
| should be terminated   | debtors expected to   |                    |
| if debt is paid        | receive payments in   |                    |
|                        | the future            |                    |
| \(e\) OPM not          |                       |                    |
| authorized to review   | \(d\) OPM not         |                    |
| merits of claim        | authorized to review  |                    |
|                        | merits of claim       |                    |
|                        |                       |                    |
|                        | \(e\) Bankruptcy Code |                    |
|                        | applies to bankruptcy |                    |
|                        | cases                 |                    |
+------------------------+-----------------------+--------------------+
| **102.5 Use of         | **901.5 Reporting     | **901.4 Reporting  |
| consumer reporting     | claims**              | claims**           |
| agencies**             |                       |                    |
|                        | \(a\) Agencies must   | Adopts proposed \' |
| \(a\) Agencies must    | develop procedures    | 901.5.             |
| develop procedures for | for reporting all     |                    |
| reporting consumer     | debts to credit       |                    |
| debt to credit bureaus | bureaus; adds that    |                    |
|                        | agencies may report   |                    |
| \(b\) Procedures must  | current claims; adds  |                    |
| comply with Privacy    | requirement that      |                    |
| Act                    | procedures also must  |                    |
|                        | comply with           |                    |
| \(c\) Procedures must  | Bankruptcy Code;      |                    |
| be consistent with 31  | procedures for        |                    |
| USC 3711(f)            | reporting consumer    |                    |
| requirements           | claims must be        |                    |
|                        | consistent with 31    |                    |
|                        | USC 3711(e)           |                    |
|                        | \[formerly 3711(f)\]  |                    |
|                        | requirements;         |                    |
|                        | agencies need not     |                    |
|                        | duplicate due process |                    |
|                        | steps already         |                    |
|                        | provided to debtor;   |                    |
|                        | delinquent claims     |                    |
|                        | should be reported to |                    |
|                        | CAIVRS                |                    |
+------------------------+-----------------------+--------------------+
| **102.6 Contracting    | **901.6 Contracting   | **901.5            |
| for collection         | for debt collection   | Contracting with   |
| services**             | agencies and to       | private collection |
|                        | locate and recover    | contractors and    |
| \(a\) Procedures for   | unclaimed assets**    | with entities that |
| contracting for        |                       | locate and recover |
| collection services    | \(a\) Procedures for  | unclaimed assets** |
|                        | contracting for       |                    |
| \(b\) Funding of       | collection services   | Adopts proposed \' |
| collection services    |                       | 901.6.             |
| may be fixed-fee or    | \(b\) Requirement     |                    |
| contingency fee; all   | that agencies use     | \(b\) Revised to   |
| collections must be    | government-wide debt  | clarify that       |
| deposited to           | collection contracts  | Federal agencies   |
| miscellaneous receipts |                       | may refer debts to |
|                        | \(c\) & (d) Funding   | private collection |
|                        | of collection         | contractors        |
|                        | services may be       | pursuant to a      |
|                        | fixed-fee or          | contract between   |
|                        | contingency fee;      | the agency and the |
|                        | deletes requirement   | private collection |
|                        | that all collections  | contractor only if |
|                        | must be deposited to  | such debts are not |
|                        | miscellaneous         | subject to the     |
|                        | receipts (since this  | DCIA requirement   |
|                        | is not always         | to transfer debts  |
|                        | required)             | to Treasury for    |
|                        |                       | debt collection    |
|                        | \(e\) Adds DCIA       | services,          |
|                        | provision that        | [                  |
|                        | agencies may enter    | e.g.]{.underline}, |
|                        | into contracts to     | debts are less     |
|                        | located unclaimed     | than 180 days      |
|                        | assets                | delinquent;        |
|                        |                       | Agencies also may  |
|                        |                       | refer debts to a   |
|                        |                       | private collection |
|                        |                       | contractor listed  |
|                        |                       | on FMS= schedule   |
|                        |                       | of private         |
|                        |                       | collection         |
|                        |                       | contractors in     |
|                        |                       | accordance with    |
|                        |                       | FMS procedures.    |
|                        |                       |                    |
|                        |                       | \(c\) Merges       |
|                        |                       | proposed \'\'      |
|                        |                       | 901.6(c) and (d).  |
|                        |                       |                    |
|                        |                       | \(d\) Same as      |
|                        |                       | proposed \'        |
|                        |                       | 901.6(e)           |
|                        |                       |                    |
|                        |                       | \(e\) Adds         |
|                        |                       | provision to       |
|                        |                       | clarify that       |
|                        |                       | agencies are       |
|                        |                       | authorized to      |
|                        |                       | contract for       |
|                        |                       | debtor asset and   |
|                        |                       | income search      |
|                        |                       | reports; fees may  |
|                        |                       | be paid from       |
|                        |                       | amounts collected, |
|                        |                       | unless otherwise   |
|                        |                       | prohibited by law. |
+------------------------+-----------------------+--------------------+
| **102.7 Personal       | **Deleted**           |                    |
| interview with         |                       |                    |
| debtor**               |                       |                    |
|                        |                       |                    |
| Required personal      |                       |                    |
| interview with debtor  |                       |                    |
| when feasible          |                       |                    |
+------------------------+-----------------------+--------------------+
| **102.8 Contact with   | **Deleted**           |                    |
| debtor=s employing     |                       |                    |
| agency**               |                       |                    |
|                        |                       |                    |
| Required contact with  |                       |                    |
| employing agency of    |                       |                    |
| Federal employee to    |                       |                    |
| arrange repayment by   |                       |                    |
| allotment              |                       |                    |
+------------------------+-----------------------+--------------------+
| **102.9 Suspension or  | **901.7 Suspension or | **901.6 Suspension |
| revocation of license  | revocation of         | or revocation of   |
| or eligibility**       | eligibility for loans | eligibility for    |
|                        | and loan guaranties,  | loans and loan     |
| Recommends that        | licenses, permits or  | guaranties,        |
| agencies establish     | privileges**          | licenses, permits  |
| procedures for         |                       | or privileges**    |
| suspending or revoking | \(a\) Adds DCIA       |                    |
| licenses or other      | requirement that bars | Adopts proposed \' |
| privileges to          | agencies from         | 901.7.             |
| delinquent debtors;    | extending financial   |                    |
| suspending or          | assistance in the     |                    |
| disqualifying entities | form of loans or      |                    |
| that are delinquent    | insurance to          |                    |
| debtors from doing     | delinquent debtors    |                    |
| business with the      |                       |                    |
| Government; sureties   | \(b\) Same            |                    |
| that fail to comply    | recommendation as     |                    |
| with obligations       | 102.9 for suspension  |                    |
| should be reported to  | or revocation of      |                    |
| Treasury for           | licenses & privileges |                    |
| revocation action      | for non-bankruptcy    |                    |
|                        | cases; adds reference |                    |
|                        | to permits            |                    |
|                        |                       |                    |
|                        | \(c\) Extend such     |                    |
|                        | suspension or         |                    |
|                        | revocation to Federal |                    |
|                        | programs administered |                    |
|                        | by States             |                    |
|                        |                       |                    |
|                        | \(d\) Consider impact |                    |
|                        | of Bankruptcy Code in |                    |
|                        | bankruptcy cases      |                    |
+------------------------+-----------------------+--------------------+
| **102.10 Liquidation   | **901.8 Liquidation   | **901.7            |
| of collateral**        | of collateral**       | Liquidation of     |
|                        |                       | collateral**       |
| Allows liquidation of  | \(a\) Reworded        |                    |
| collateral for         |                       | Adopts proposed \' |
| delinquent debts       | \(b\) Consider impact | 901.8.             |
| unless not             | of Bankruptcy Code in |                    |
| cost-effective         | bankruptcy cases      |                    |
+------------------------+-----------------------+--------------------+
| **102.11 Collection in | **901.9 Collection in | **901.8 Collection |
| installments**         | installments**        | in installments**  |
|                        |                       |                    |
| \(a\) Lump sum payment | \(a\) & (b) Same      | Adopts proposed \' |
| preferred, but         | requirements as       | 901.9.             |
| installment payments   | 102.11(a), except     |                    |
| may be considered;     | recommended minimum   |                    |
| agencies should obtain | monthly payment &     |                    |
| financial statements,  | confess-judgment      |                    |
| written agreement that | requirements deleted  |                    |
| accelerates debt in    |                       |                    |
| the event of default;  | \(c\) Security for    |                    |
| installment payments   | payments should be    |                    |
| should be based on     | obtained whenever     |                    |
| size of debt, ability  | possible; agencies    |                    |
| to pay, pay claim      | may accept            |                    |
| within 3 years, not be | installment payments  |                    |
| less than \$50/month   | if debtor refuses to  |                    |
| except in hardship     | enter into written    |                    |
| cases, should have     | agreement or provide  |                    |
| confess-judgment       | security              |                    |
|                        |                       |                    |
| \(b\) Debtor may       | Delete provision that |                    |
| designate how payments | describes how         |                    |
| should be applied      | payments should be    |                    |
|                        | applied among         |                    |
|                        | multiple debts        |                    |
+------------------------+-----------------------+--------------------+
| **102.12 Exploration   | **Deleted**           |                    |
| of compromise**        |                       |                    |
|                        | Part 902 discusses    |                    |
| Allows agencies to     | compromise            |                    |
| attempt compromise     | requirements          |                    |
+------------------------+-----------------------+--------------------+
| **102.13 Interest,     | **901.10 Interest,    | **901.9 Interest,  |
| penalties, and         | penalties, and        | penalties, and     |
| administrative costs** | administrative        | administrative     |
|                        | costs**               | costs**            |
| \(a\) Requires         |                       |                    |
| assessment of          | \(a\) Same            | Adopts proposed \' |
| interest, penalties    | requirements          | 901.10.            |
| and administrative     |                       |                    |
| costs in accordance    | \(b\) Interest        |                    |
| with 31 USC 3717;      | accrues from date of  |                    |
| requires prior notice  | delinquency (which    |                    |
| to debtor              | may be the date of    |                    |
|                        | the notice depending  |                    |
| \(b\) & (c) Interest   | upon underlying       |                    |
| accrues from date of   | agreement, agency     |                    |
| notice at rate         | statutes and/or       |                    |
| required under 3717    | regulations)          |                    |
|                        |                       |                    |
| \(d\) Requires         | \(c\) Assessment of   |                    |
| assessment of          | administrative costs  |                    |
| administrative costs   | requirement unchanged |                    |
|                        |                       |                    |
| \(e\) Requires         | \(d\) Assessment of   |                    |
| assessment of          | penalties requirement |                    |
| penalties for debts    | unchanged             |                    |
| delinquent 90+ days;   |                       |                    |
| to accrue from date of | \(e\) Adds DCIA       |                    |
| delinquency            | authority to adjust   |                    |
|                        | administrative claims |                    |
| \(f\) Payments applied | by COLA               |                    |
| first to penalty &     |                       |                    |
| costs, then to         | \(f\) Same payment    |                    |
| interest and finally   | application priority  |                    |
| to principal           |                       |                    |
|                        | \(g\) & (h) Agencies  |                    |
| \(g\) & (h) Procedures | required to identify  |                    |
| for waiving or         | circumstances by      |                    |
| suspending assessment  | regulation when       |                    |
| of interest, penalties | waiver is appropriate |                    |
| and administrative     |                       |                    |
| costs                  | \(i\) Deleted         |                    |
|                        | exceptions; added     |                    |
| \(i\) This provision   | that agencies         |                    |
| does not apply to      | authorized to apply   |                    |
| debts owed by States   | common law; DCIA      |                    |
| or local governments,  | added provision that  |                    |
| debts under contracts  | 3717 now applies to   |                    |
| prior to 10/25/82,     | claims owed by State  |                    |
| when another statute   | & local Governments   |                    |
| or regulation applies, | (Social Security, IRC |                    |
| Social Security, IRC   | or tariff debts still |                    |
| or tariff debts;       | excluded)             |                    |
| agencies authorized to |                       |                    |
| apply common law or    |                       |                    |
| other applicable       |                       |                    |
| authority              |                       |                    |
+------------------------+-----------------------+--------------------+
| **102.14 Analysis of   | **901.11 Analysis of  | **901.10 Analysis  |
| costs**                | costs**               | of costs**         |
|                        |                       |                    |
| Requires periodic      | Reworded              | Adopts proposed \' |
| cost-benefit analysis  |                       | 901.11.            |
| of collection program  |                       |                    |
+------------------------+-----------------------+--------------------+
| **102.15 Documentation | **Deleted**           |                    |
| of administrative      |                       |                    |
| collection action**    | Unnecessary language  |                    |
|                        |                       |                    |
| Requires documentation |                       |                    |
| of collection activity |                       |                    |
+------------------------+-----------------------+--------------------+
| **102.16 Automation**  | **Deleted**           |                    |
|                        |                       |                    |
| Requires agencies to   | Unnecessary language  |                    |
| automate debt          |                       |                    |
| collection activity    |                       |                    |
+------------------------+-----------------------+--------------------+
| **102.17 Prevention of | **Deleted**           |                    |
| overpayments,          |                       |                    |
| delinquencies, and     | Unnecessary language  |                    |
| defaults**             |                       |                    |
|                        |                       |                    |
| Requires agencies to   |                       |                    |
| manage credit & other  |                       |                    |
| programs to prevent    |                       |                    |
| debts & defaults       |                       |                    |
+------------------------+-----------------------+--------------------+
| **102.18 Use and       | **901.12 Use and      | **901.11 Use and   |
| disclosure of mailing  | disclosure of mailing | disclosure of      |
| addresses**            | addresses**           | mailing            |
|                        |                       | addresses**        |
| \(a\) Agencies may     | \(a\) & (b) Reworded  |                    |
| contact IRS to obtain  |                       | Adopts proposed \' |
| debtors= mailing       | \(c\) deleted;        | 901.12.            |
| addresses              | unnecessary language  |                    |
|                        |                       |                    |
| \(b\) Mailing address  |                       |                    |
| information may be     |                       |                    |
| disclosed to agents to |                       |                    |
| facilitate collection  |                       |                    |
| or compromise of       |                       |                    |
| debts; may only be     |                       |                    |
| disclosed to credit    |                       |                    |
| bureaus to obtain      |                       |                    |
| commercial credit      |                       |                    |
| report                 |                       |                    |
|                        |                       |                    |
| \(c\) Requires         |                       |                    |
| compliance with IRS    |                       |                    |
| safeguarding           |                       |                    |
| procedures             |                       |                    |
+------------------------+-----------------------+--------------------+
| **102.19 Exemptions**  | **901.13 Exemptions** | **901.12           |
|                        |                       | Exemptions**       |
| \(a\) Under the Debt   | \(a\) Modified to     |                    |
| Collection Act of      | reflect DCIA          | Adopts proposed \' |
| 1982, administrative   | authority to offset   | 901.13.            |
| offset, credit bureau  | Social Security       |                    |
| reporting, collection  | benefits, subject to  |                    |
| services contracting,  | \$9,000 exemption     |                    |
| & assessment of        |                       |                    |
| charges requirements   | \(b\) Unchanged       |                    |
| do not apply to IRC    |                       |                    |
| debts or payments,     |                       |                    |
| Social Security debts  |                       |                    |
| or payments or tariff  |                       |                    |
| debts or payments;     |                       |                    |
| other laws (statutory  |                       |                    |
| or common law) may     |                       |                    |
| authorize the use of   |                       |                    |
| such procedures        |                       |                    |
|                        |                       |                    |
| \(b\) The exceptions   |                       |                    |
| do not mean to exclude |                       |                    |
| employees              |                       |                    |
| administering the laws |                       |                    |
| giving rise to the     |                       |                    |
| excepted debts and/or  |                       |                    |
| payments               |                       |                    |
+------------------------+-----------------------+--------------------+
| **102.20 Additional    | **Deleted**           |                    |
| administrative         |                       |                    |
| collection action**    | Included in 900.1     |                    |
|                        |                       |                    |
| FCCS do not preclude   |                       |                    |
| use of other           |                       |                    |
| administrative         |                       |                    |
| collection remedies    |                       |                    |
+------------------------+-----------------------+--------------------+
| ***PART 103 -          | ***PART 902 -         | ***PART 902 -      |
| STANDARDS FOR          | STANDARDS FOR THE     | STANDARDS FOR THE  |
| COMPROMISE OF          | COMPROMISE OF         | COMPROMISE OF      |
| CLAIMS***              | CLAIMS***             | CLAIMS***          |
+------------------------+-----------------------+--------------------+
| **103.1 Scope and      | **902.1 Scope and     | **902.1 Scope and  |
| application**          | application**         | application**      |
|                        |                       |                    |
| \(a\) Agencies         | \(a\) Agencies        | Adopts proposed    |
| authorized to          | authority increased   | rule.              |
| compromise claims not  | to \$100,000, or such |                    |
| exceeding \$20,000     | higher amount as      |                    |
| (exclusive of          | Attorney General may  |                    |
| interest, penalties &  | determine; GAO=s debt |                    |
| other charges); claims | collection role       |                    |
| may be referred to     | eliminated; clarifies |                    |
| GAO, or DOJ for        | that FCCS applies to  |                    |
| litigation; compromise | agencies collecting   |                    |
| authority for claims   | their own debt or     |                    |
| over \$20,000 rests    | debt referred for     |                    |
| only with DOJ; only    | debt collection       |                    |
| GAO may compromise     | services              |                    |
| claims arising in the  | (cross-servicing)     |                    |
| account of an          |                       |                    |
| accountable officer    | \(b\) Revisions to    |                    |
| prior to litigation;   | procedures for        |                    |
| agency heads may       | referring claims over |                    |
| delegate compromise    | \$100,000 for         |                    |
| authority              | compromise to conform |                    |
|                        | with current          |                    |
| \(b\) Procedure for    | practices             |                    |
| referring claims over  |                       |                    |
| \$20,000 for           |                       |                    |
| compromise; DOJ sole   |                       |                    |
| compromise authority   |                       |                    |
| for such claims;       |                       |                    |
| agency should make     |                       |                    |
| recommendation         |                       |                    |
+------------------------+-----------------------+--------------------+
| **103.2 Inability to   | **902.2 Bases for     | **902.2 Bases for  |
| pay**                  | compromise**          | compromise**       |
|                        |                       |                    |
| \(a\) & (b) Prescribes | \(a\) - (g)           | Adopts proposed    |
| factors to consider    | Consolidated          | rule.              |
| when determining       | AInability to pay,@   |                    |
| debtors= ability to    | ALitigative           | \(g\) Amended to   |
| pay for compromise     | probabilities,@ and   | clarify that, when |
| purposes               | ACost of collecting   | evaluating a       |
|                        | claim@                | compromise         |
| \(c\) Agencies should  |                       | proposal, agencies |
| consider recovery      |                       | need not obtain a  |
| potential & exemptions |                       | current financial  |
| available to debtor    |                       | statement from a   |
|                        |                       | debtor to assess   |
| \(d\) Compromise       |                       | the merits of a    |
| payable in             |                       | proposal unless    |
| installments is        |                       | the proposal is    |
| discouraged; written   |                       | based on the       |
| agreement should       |                       | debtor=s inability |
| provide for            |                       | to pay.            |
| acceleration and       |                       |                    |
| reinstatement of       |                       |                    |
| original debt, as well |                       |                    |
| as security            |                       |                    |
|                        |                       |                    |
| \(e\) Agencies should  |                       |                    |
| have financial         |                       |                    |
| information to         |                       |                    |
| evaluate potential     |                       |                    |
| compromises            |                       |                    |
+------------------------+-----------------------+--------------------+
| **103.3 Litigative     | **Deleted**           |                    |
| probabilities**        |                       |                    |
|                        | Included in 902.2     |                    |
| Consideration of       |                       |                    |
| litigation costs and   |                       |                    |
| Government=s ability   |                       |                    |
| to prove case when     |                       |                    |
| evaluating potential   |                       |                    |
| compromises            |                       |                    |
+------------------------+-----------------------+--------------------+
| **103.4 Cost of        | **Deleted**           |                    |
| collecting claim**     |                       |                    |
|                        | Included in 902.2     |                    |
| Cost-benefit vs.       |                       |                    |
| enforcement policy     |                       |                    |
| considerations should  |                       |                    |
| be weighed when        |                       |                    |
| evaluating potential   |                       |                    |
| compromises            |                       |                    |
+------------------------+-----------------------+--------------------+
| **103.5 Enforcement    | **902.3 Enforcement   | **902.3            |
| policy**               | policy**              | Enforcement        |
|                        |                       | policy**           |
| Statutory enforcement  | Reworded              |                    |
| policy considerations  |                       | Adopts proposed    |
| such as deterrence,    |                       | rule.              |
| securing compliance    |                       |                    |
| and severity of        |                       |                    |
| violation should be    |                       |                    |
| weighed when           |                       |                    |
| evaluating potential   |                       |                    |
| compromises of         |                       |                    |
| penalties, forfeitures |                       |                    |
| and fines              |                       |                    |
+------------------------+-----------------------+--------------------+
| **103.6 Joint and      | **902.4 Joint and     | **902.4 Joint and  |
| several liability**    | several liability**   | several            |
|                        |                       | liability**        |
| Collection action      | Reworded in           |                    |
| should be pursued      | paragraphs (a) & (b)  | Adopts proposed    |
| against all liable     |                       | rule.              |
| parties                |                       |                    |
| simultaneously;        |                       |                    |
| compromise with one    |                       |                    |
| debtor should not      |                       |                    |
| release liability of   |                       |                    |
| co-debtors or set      |                       |                    |
| precedence             |                       |                    |
+------------------------+-----------------------+--------------------+
| **103.7 Compromise for | **Deleted**           |                    |
| a combination of       |                       |                    |
| reasons**              | Unnecessary language  |                    |
|                        |                       |                    |
| Authorizes compromise  |                       |                    |
| based on multiple      |                       |                    |
| reasons                |                       |                    |
+------------------------+-----------------------+--------------------+
| **103.8 Further review | **902.5 Further       | **902.5 Further    |
| of compromise offers** | review of compromise  | review of          |
|                        | offers**              | compromise         |
| Agencies may seek      |                       | offers**           |
| assistance from GAO or | GAO role eliminated;  |                    |
| DOJ in evaluating      | firm written          | Adopts proposed    |
| offers to compromise   | substantive           | rule.              |
|                        | compromise offer      |                    |
|                        | required before       |                    |
|                        | referral to DOJ       |                    |
+------------------------+-----------------------+--------------------+
| **103.9 Restrictions** | **902.6 Consideration | **902.6            |
|                        | of tax consequences   | Consideration of   |
| Acceptance of debtor=s | to the Government**   | tax consequences   |
| profits or stocks not  |                       | to the             |
| authorized for a       | Deleted restriction   | Government**       |
| compromise; agencies   | on acceptance of      |                    |
| should consider        | debtor=s profits or   | Adopts proposed    |
| requiring a waiver of  | stocks                | rule.              |
| tax-loss-carry-forward |                       |                    |
| and                    |                       | Adds reference to  |
| tax-loss-carry-back    |                       | new \' 903.5,      |
| rights of debtor       |                       | Discharge of       |
|                        |                       | indebtedness;      |
|                        |                       | reporting          |
|                        |                       | requirements.      |
+------------------------+-----------------------+--------------------+
|                        | **902.7 Mutual        | **902.7 Mutual     |
|                        | releases of the       | releases of the    |
|                        | debtor and the        | debtor and the     |
|                        | Government**          | Government**       |
|                        |                       |                    |
|                        | New section requiring | Adopts proposed    |
|                        | that compromises be   | rule.              |
|                        | implemented by means  |                    |
|                        | of mutual release,    | Revised to         |
|                        | when appropriate      | emphasize the      |
|                        |                       | mutuality of the   |
|                        |                       | debtor and         |
|                        |                       | Government         |
|                        |                       | releases and to    |
|                        |                       | clarify that       |
|                        |                       | debtor is deemed   |
|                        |                       | to waived claims   |
|                        |                       | even when release  |
|                        |                       | is not executed.   |
+------------------------+-----------------------+--------------------+
| ***PART 104 -          | ***PART 903 -         | ***PART 903 -      |
| STANDARDS FOR          | STANDARDS FOR         | STANDARDS FOR      |
| SUSPENDING OR          | SUSPENDING OR         | SUSPENDING OR      |
| TERMINATING COLLECTION | TERMINATING           | TERMINATING        |
| ACTION***              | COLLECTION            | COLLECTION         |
|                        | ACTIVITY***           | ACTIVITY***        |
+------------------------+-----------------------+--------------------+
| **104.1 Scope and      | **903.1 Scope and     | **903.1 Scope and  |
| application**          | application**         | application**      |
|                        |                       |                    |
| \(a\) Agencies         | \(a\) Agencies=       | Adopts proposed    |
| authorized to suspend  | authority increased   | rule.              |
| or terminate           | to \$100,000, or such |                    |
| collection action with | higher amount as      |                    |
| respect to claims not  | Attorney General may  |                    |
| exceeding \$20,000     | determine; GAO=s debt |                    |
| (exclusive of          | collection role       |                    |
| interest, penalties &  | eliminated; clarifies |                    |
| other charges); claims | that FCCS applies to  |                    |
| may be referred to     | agencies collecting   |                    |
| GAO, or DOJ for        | their own debt or     |                    |
| litigation; collection | debt referred for     |                    |
| activity for claims    | debt collection       |                    |
| over \$20,000 may be   | services              |                    |
| suspended or           | (cross-servicing)     |                    |
| terminated only by DOJ |                       |                    |
|                        | \(b\) Revisions to    |                    |
| \(b\) Procedure for    | procedures for        |                    |
| referring claims over  | referring claims over |                    |
| \$20,000 to DOJ;       | \$100,000 to DOJ      |                    |
| Agencies may terminate |                       |                    |
| collection action when |                       |                    |
| claim is erroneous or  |                       |                    |
| without legal merit    |                       |                    |
+------------------------+-----------------------+--------------------+
| **104.2 Suspension of  | **903.2 Suspension of | **903.2 Suspension |
| collection activity**  | collection activity** | of collection      |
|                        |                       | activity**         |
| \(a\) & (b) Prescribes | (a)-(c) reworded to   |                    |
| factors to consider    | incorporate 104.2(a)  | Adopts proposed    |
| when determining that  | & (b)                 | rule.              |
| collection action      |                       |                    |
| should be suspended,   | \(d\) Consider impact |                    |
| such as inability to   | of Bankruptcy Code in |                    |
| locate the debtor and  | bankruptcy cases      |                    |
| temporary inability to |                       |                    |
| pay                    |                       |                    |
|                        |                       |                    |
| \(c\) Prescribes when  |                       |                    |
| collection activity    |                       |                    |
| should be suspended    |                       |                    |
| pending waiver or      |                       |                    |
| administrative review  |                       |                    |
+------------------------+-----------------------+--------------------+
| **104.3 Termination of | **903.3 Termination   | **903.3            |
| collection activity**  | of collection         | Termination of     |
|                        | activity**            | collection         |
| \(a\) - (e) Prescribes |                       | activity**         |
| factors to consider    | \(a\) Reworded to     |                    |
| when determining that  | combine factors in    | Adopts proposed    |
| collection action      | 104.3(a)-(e); adds    | rule.              |
| should be terminated,  | that collection       |                    |
| such as inability to   | activity may be       |                    |
| collect or locate the  | terminated for debts  |                    |
| debtor, cost to        | that have been        |                    |
| collect exceeds        | discharged in         |                    |
| potential recovery,    | bankruptcy            |                    |
| claim without merit or |                       |                    |
| cannot be              | \(b\) Adds that       |                    |
| substantiated          | termination does not  |                    |
|                        | preclude retention of |                    |
|                        | debt record for       |                    |
|                        | purposes of selling   |                    |
|                        | debt, pursuing        |                    |
|                        | collection at a later |                    |
|                        | date, offset, or to   |                    |
|                        | screen for future     |                    |
|                        | creditworthiness      |                    |
|                        |                       |                    |
|                        | \(c\) Adds that       |                    |
|                        | bankruptcy filing     |                    |
|                        | generally requires    |                    |
|                        | that collection       |                    |
|                        | activity be           |                    |
|                        | terminated            |                    |
+------------------------+-----------------------+--------------------+
| **104.4 Transfer of    | **903.4 Exception to  | **903.4 Exception  |
| claims**               | termination**         | to termination**   |
|                        |                       |                    |
| Allows referral to GAO | Eliminates GAO role   | Adopts proposed    |
| for review of whether  |                       | rule.              |
| collection activity    | Removes reference to  |                    |
| should be suspended or | referral to DOJ;      |                    |
| terminated; agencies   | included in Part 904  |                    |
| should consider        |                       |                    |
| enforcement policies   |                       |                    |
| and refer claim for    |                       |                    |
| litigation even though |                       |                    |
| termination may        |                       |                    |
| otherwise be           |                       |                    |
| appropriate; agencies  |                       |                    |
| to refer to DOJ claims |                       |                    |
| on which agency hold a |                       |                    |
| judgment by assignment |                       |                    |
| unless agency has its  |                       |                    |
| own litigation         |                       |                    |
| authority              |                       |                    |
+------------------------+-----------------------+--------------------+
|                        |                       | **NEW 903.5        |
|                        |                       | Discharge of       |
|                        |                       | indebtedness;      |
|                        |                       | reporting          |
|                        |                       | requirements**     |
|                        |                       |                    |
|                        |                       | \(a\) Requires     |
|                        |                       | agencies to take   |
|                        |                       | all appropriate    |
|                        |                       | collection actions |
|                        |                       | and make a         |
|                        |                       | determination that |
|                        |                       | further collection |
|                        |                       | action is not      |
|                        |                       | warranted before   |
|                        |                       | making a           |
|                        |                       | determination to   |
|                        |                       | discharge a debt   |
|                        |                       | (Aclose out@).     |
|                        |                       | Discusses          |
|                        |                       | difference between |
|                        |                       | discharge and      |
|                        |                       | term               |
|                        |                       | ination/suspension |
|                        |                       | of debt collection |
|                        |                       | activity.          |
|                        |                       |                    |
|                        |                       | \(b\) Provides     |
|                        |                       | that agencies may  |
|                        |                       | not discharge a    |
|                        |                       | debt until the     |
|                        |                       | requirements of    |
|                        |                       | 31 U.S.C. 3711(I)  |
|                        |                       | (sale of debt)     |
|                        |                       | have been met.     |
|                        |                       |                    |
|                        |                       | \(c\) Provides     |
|                        |                       | that agencies must |
|                        |                       | report discharge   |
|                        |                       | to IRS on Form     |
|                        |                       | 1099-C. Treasury   |
|                        |                       | and                |
|                        |                       | T                  |
|                        |                       | reasury-designated |
|                        |                       | debt collection    |
|                        |                       | centers may file   |
|                        |                       | 1099-C on behalf   |
|                        |                       | of agencies.       |
|                        |                       |                    |
|                        |                       | \(d\) Agencies     |
|                        |                       | must request that  |
|                        |                       | litigation counsel |
|                        |                       | release liens      |
|                        |                       | after discharge.   |
+------------------------+-----------------------+--------------------+
| ***PART 105 -          | ***PART 904 -         | ***PART 904 -      |
| REFERRALS TO           | REFERRALS TO THE      | REFERRALS TO THE   |
| DEPARTMENT OF JUSTICE  | DEPARTMENT OF         | DEPARTMENT OF      |
| OR GAO***              | JUSTICE***            | JUSTICE***         |
+------------------------+-----------------------+--------------------+
| **105.1 Prompt         | **904.1 Prompt        | **904.1 Prompt     |
| referral**             | referral**            | referral**         |
|                        |                       |                    |
| \(a\) Procedures for   | \(a\) Revised         | Adopts proposed    |
| referring claims that  | procedures for        | rule.              |
| cannot be resolved     | referring claims that |                    |
| under FCCS to DOJ for  | cannot be resolved    |                    |
| litigation             | under FCCS to DOJ for |                    |
|                        | litigation reflect    |                    |
| \(b\) GAO must review  | current practice;     |                    |
| claims arising from    | claims threshold over |                    |
| audit exceptions prior | which claims are      |                    |
| to DOJ referral        | referred to DC Civil  |                    |
|                        | Division increased    |                    |
| \(c\) GAO may advise   | from \$100,000 to     |                    |
| agency on doubtful     | \$1,000,000           |                    |
| claims prior to        |                       |                    |
| referral to DOJ        | \(b\) GAO=s role      |                    |
|                        | eliminated; includes  |                    |
| \(d\) Agencies should  | 105.1(d) requirements |                    |
| not have debtor        | that agencies refrain |                    |
| contact after referral | from debtor contact   |                    |
| and should notify DOJ  | after referral to     |                    |
| or GAO of any payments | DOJ; adds provision   |                    |
| received               | that DOJ shall notify |                    |
|                        | agencies of any       |                    |
|                        | payments received     |                    |
|                        | from debtor           |                    |
+------------------------+-----------------------+--------------------+
| **105.2 Claims         | **904.2 Claims        | **904.2 Claims     |
| Collection Litigation  | Collection Litigation | Collection         |
| Report**               | Report**              | Litigation         |
|                        |                       | Report**           |
| \(a\) Completion of    | (a)-(c) Reworded CCLR |                    |
| CCLR required for DOJ  | requirements; deleted | Adopts proposed    |
| referrals for          | specifics re items    | rule.              |
| litigation; specifies  | required; refers      |                    |
| information required   | agencies to CCLR      |                    |
|                        | instructions          |                    |
| \(b\) CCLR required    |                       |                    |
| for DOJ referrals for  |                       |                    |
| compromise, suspension |                       |                    |
| or termination         |                       |                    |
| concurrence            |                       |                    |
+------------------------+-----------------------+--------------------+
| **105.3 Preservation   | **904.3 Preservation  | **904.3            |
| of evidence**          | of evidence**         | Preservation of    |
|                        |                       | evidence**         |
| Agencies required to   | Adds requirement that |                    |
| preserve evidence for  | certified copies of   | Adopts proposed    |
| litigation purposes    | documents be          | rule.              |
|                        | forwarded to DOJ with |                    |
|                        | litigation referral;  |                    |
|                        | requires agencies to  |                    |
|                        | send original         |                    |
|                        | documents upon        |                    |
|                        | request               |                    |
+------------------------+-----------------------+--------------------+
| **105.4 Minimum amount | **904.4 Minimum       | **904.4 Minimum    |
| of referrals to        | amount of referrals   | amount of          |
| Department of          | to Department of      | referrals to       |
| Justice**              | Justice**             | Department of      |
|                        |                       | Justice**          |
| Specifies that minimum | Increases minimum     |                    |
| amount of claim that   | amount of claim to    | Adopts proposed    |
| can be referred to DOJ | \$2,500 (principal    | rule.              |
| for litigation is      | balance); adds        |                    |
| \$600 (principal       | exception for claims  |                    |
| balance), unless       | being referred solely |                    |
| significant            | to secure a judgment  |                    |
| enforcement policy     | for lien filing       |                    |
| warrants otherwise, or | purposes              |                    |
| debtor refuses to pay  |                       |                    |
| valid debts despite    |                       |                    |
| having the clear       |                       |                    |
| ability to pay         |                       |                    |
+------------------------+-----------------------+--------------------+
| **105.5 Preliminary    | **Deleted**           |                    |
| referrals to GAO**     |                       |                    |
|                        | GAO=s role eliminated |                    |
| Procedures for         |                       |                    |
| referral of claims to  |                       |                    |
| GAO                    |                       |                    |
+------------------------+-----------------------+--------------------+