[Federal Register Volume 62, Number 152 (Thursday, August 7, 1997)]
[Proposed Rules]
[Pages 42439-42443]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-20742]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Parts 404 and 422

RIN 0960-AE09


Federal Old-Age, Survivors, and Disability Insurance; Disclosure 
of Information to Consumer Reporting Agencies and Overpayment Recovery 
Through Administrative Offset Against Federal Payments

AGENCY: Social Security Administration.

ACTION: Proposed rules.

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SUMMARY: We propose to make several revisions to our regulations 
dealing with debt collection. First, we propose to modify the 
regulations dealing with the recovery of benefit overpayments under 
title II of the Social Security Act (the Act) to reflect statutory 
authority for the Social Security Administration (SSA) to selectively 
refer information to consumer reporting agencies and to recover title 
II overpayments through administrative offset by the Department of the 
Treasury against other Federal payments to which the overpaid 
individual may be entitled. These collection practices would be limited 
to overpayments made to a person after he or she attained age 18 that 
are determined to be otherwise unrecoverable under section 204 of the 
Act after the individual ceases to be a beneficiary under title II of 
the Act. Second, as an independent agency in the executive branch of 
the U.S. Government, we propose to establish a new subpart D in part 
422 of title 20 of the Code of Federal Regulations which will explain 
our rules on debt collection procedures for both administrative debts 
and for title II program overpayments determined to be otherwise 
unrecoverable under section 204 of the Act. These proposed rules for 
the new subpart D would address the reporting of delinquent debts to 
consumer and other credit reporting agencies and the use of 
administrative offset through the Department of the Treasury. Third, we 
propose to revise our rules on the recovery of title II program 
overpayments through the use of the Federal income tax refund offset 
(TRO) provisions to reflect that, beginning January 1, 1998, the 
Department of the Treasury, rather than the Internal Revenue Service 
(IRS), will administer the TRO program, and to reflect other changes in 
policies and procedures applied by the IRS and the Department of the 
Treasury in the TRO program.

DATES: To be sure your comments are considered, we must receive them no 
later than October 6, 1997.

ADDRESSES: Comments should be submitted in writing to the Commissioner 
of Social Security, P.O. Box 1585, Baltimore, Maryland 21235, sent by 
telefax to (410) 966-2830, sent by e-mail to <a href="/cdn-cgi/l/email-protection#056565776062706964716c6a6b76457676642b626a73">``<span class="__cf_email__" data-cfemail="9be9fefceef7faeff2f4f5e8dbe8e8fab5fcf4ed">[email protected]</span></a>,'' 
or delivered to the Division of Regulations and Rulings, Social 
Security Administration, 3-B-1 Operations Building, 6401 Security 
Boulevard, Baltimore, MD 21235, between 8:00 a.m. and 4:30 p.m. on 
regular business days. Comments may be inspected during these same 
hours by making arrangements with the contact person shown below.

FOR FURTHER INFORMATION CONTACT: Robert J. Augustine, Legal Assistant, 
Division of Regulations and Rulings, Social Security Administration, 
6401 Security Boulevard, Baltimore, MD 21235, (410) 966-5121. For 
information on eligibility or claiming benefits, call our national 
toll-free number, 1-800-772-1213.

SUPPLEMENTARY INFORMATION: Section 204 of the Act prescribes the 
methods SSA may use to recover Social Security benefits erroneously 
paid under title II of the Act (title II program overpayments), as 
distinguished from the methods SSA may use to collect other debts owed 
the agency (administrative debts) that are recoverable under other 
statutory authority. Until recently, SSA was authorized to recover 
title II program overpayments only through adjustment of future 
benefits payable to the overpaid individual or to others on the 
earnings record on which the overpayment was made, by direct recovery 
from the overpaid person (or the overpaid person's estate, if 
deceased), or by offset against Federal income tax refunds due from the 
Department of the Treasury. Amendments to section 204 of the Act by 
section 5 of Pub. L. 103-387 (1994) and section 31001(z)(2) of Pub. L. 
104-134 (1996) permit SSA to use several debt collection procedures 
that have

[[Page 42440]]

been available to Federal agencies (including SSA) by statute since 
1982, but that SSA had been precluded from using to recover title II 
program overpayments. Among other things, these procedures include 
reporting delinquent debts to consumer and other credit reporting 
agencies and recovering debts by administrative offset against other 
Federal payments to which the debtor is entitled. Under section 204(f) 
of the Act (42 U.S.C. 404(f)), these additional debt collection 
procedures may be used to recover title II program overpayments only if 
the overpayment was made to a person after he or she attained age 18 
and the overpayment has been determined to be otherwise unrecoverable 
under section 204 of the Act after the overpaid person is no longer 
entitled to benefits under title II of the Act.
    Before we can refer information to consumer or other credit 
reporting agencies or refer a debt to the Department of the Treasury 
for administrative offset (either title II program overpayments or 
administrative debts), we must (1) send the debtor written notice (or, 
in the case of an individual for whom we do not have a current address, 
take reasonable action to locate and send written notice) describing 
the amount and nature of the debt, the action that we propose to take, 
and the debtor's rights to an explanation of the debt, to request us to 
review the debt, to dispute the accuracy of the information about the 
debt, and to inspect or copy our records about the debt; and (2) give 
the debtor at least 60 calendar days to present evidence that all or 
part of the debt is not past-due or not legally enforceable, or enter 
into a written agreement to pay the debt.
    Prior to March 31, 1995, SSA was an operating division of the 
Department of Health and Human Services (DHHS). SSA relied on the DHHS 
rules at 45 CFR part 30 for debt collection (other than collection of 
title II program overpayments). The Social Security Independence and 
Program Improvements Act of 1994 (SSIPIA), Pub. L. 103-296, established 
SSA as an independent agency in the executive branch of the Federal 
government effective March 31, 1995, and vested general regulatory 
authority in the Commissioner of Social Security (the Commissioner). 
Under section 106(b) of the SSIPIA, DHHS regulations in effect 
immediately before March 31, 1995, which relate to functions now vested 
in the Commissioner by reason of SSA's independence, continue to apply 
to SSA until such time as they are modified, suspended, terminated, or 
repealed by the Commissioner. In this rule, we propose to establish a 
new subpart D in part 422 of our regulations which will set forth the 
SSA rules on debt collection for title II program overpayments that 
have been determined to be otherwise unrecoverable under section 204 of 
the Act and for administrative debts. At this time, we propose to set 
forth in subpart D our rules on referral to consumer and other credit 
reporting agencies and referral to the Department of the Treasury for 
administrative offset. In the future, as we make the necessary systems 
changes and develop policies and procedures to enable us to use 
additional debt collection tools for recovery of title II program 
overpayments, we will modify subpart D of part 422. In the meantime, we 
will continue to rely on the definitions and collection methods 
contained in the DHHS regulations in 45 CFR part 30 to recover 
administrative debts owed the Federal government.
    We are also proposing revisions to our existing rules on the 
recovery of title II program overpayments through the withholding of 
amounts due to former beneficiaries as Federal income tax refunds to 
reflect the fact that, beginning January 1, 1998, the Federal income 
tax refund offset (TRO) program will be administered by the Department 
of the Treasury, Financial Management Service (FMS), instead of the 
IRS. The policy requiring agencies to delay referral of debts for TRO 
for three months after the right to collect first accrued has been 
rescinded. Also, the TRO program, as administered by FMS, will be 
ongoing rather than cyclical so that it will no longer be necessary for 
agencies to recertify amounts for collection by TRO each year. Instead, 
the case will remain with FMS for offset in succeeding years.

Explanation of Changes to Regulations

    We propose to revise our title II rules on TRO at Secs. 404.520-
404.526 to reflect the fact that, beginning January 1, 1998, we will be 
referring title II program overpayments for TRO to the Department of 
the Treasury, rather than to IRS. Section 404.520 would be revised to 
delete the requirement that a debt may not be referred for TRO before 
the expiration of three months after our right to collect first 
accrued. Section 404.526 would also be revised by deleting reference to 
the need to recertify an overpayment for TRO in cases where a tax 
refund is insufficient to recover an overpayment in a given year, 
reflecting the fact that the case will now remain with the Department 
of the Treasury for offset in succeeding years without need for 
recertification.
    We propose to add a new Sec. 404.527 to our regulations to explain 
that we will use the additional debt collection methods authorized by 
section 204(f) of the Act to recover title II program overpayments if 
the overpayment occurred after the individual attained age 18, and the 
overpayment has been determined to be otherwise unrecoverable under 
section 204 of the Act after the individual is no longer entitled to 
benefits under title II of the Act. Proposed Sec. 404.527 also contains 
the criteria under which we determine that an overpayment is 
``otherwise unrecoverable under section 204 of the Act.'' An 
overpayment debt will be determined to be unrecoverable when all of the 
following conditions are met: we completed our billing sequence or 
collection activity has been suspended or terminated in accordance with 
the Federal Claims Collection Standards in 4 CFR 104.2 and 104.3; there 
is no installment payment agreement or the overpaid person has failed 
to pay in accordance with such an agreement for two consecutive months; 
we cannot collect the overpayment by adjusting benefits payable to 
individuals other than the overpaid person. For purposes of proposed 
Sec. 404.527, an overpayment will be deemed to be unrecoverable by 
adjustment of benefits payable to an individual who lived in a separate 
household from the overpaid person when the overpayment occurred and 
did not receive the overpayment. Adjustment of benefits is waived when 
waiver is requested under these circumstances. See 20 CFR 404.509.
    We propose to add to Sec. 404.903 new paragraphs (t) and (u) to 
include in the list of administrative actions that are not initial 
determinations our determinations whether we will refer information 
about an overpayment debt to consumer reporting agencies and whether we 
will refer the debt to the Department of the Treasury for offset 
against other Federal payments due the overpaid person. Administrative 
actions that are not initial determinations may be reviewed by us, but 
they are not subject to the administrative review process provided by 
subpart J of our regulations at 20 CFR part 404, and they are not 
subject to judicial review.
    We also propose to create a new subpart D to part 422 of our 
regulations to contain our rules on certain debt collection practices 
and procedures. In Sec. 422.301, we would specify that the debt 
collection tools in subpart D may be used to recover both title II 
program overpayments the Commissioner has determined to be 
unrecoverable under section 204 of the Act and overdue administrative 
debts owed the agency.

[[Page 42441]]

    In Sec. 422.305, we explain that we will refer all overdue title II 
program debts over $25 to consumer reporting agencies. We describe the 
information we must include in the notice we send to the debtor before 
we report the debt to a consumer reporting agency. We also explain in 
this section that, in cases where an individual disputes the 
information we propose to refer to a consumer reporting agency within 
60 calendar days of our notice of our proposed referral, we will not 
send the information until we determine the correct information.
    In Sec. 422.306, we explain that we will refer all overdue 
administrative debts over $25 to credit reporting agencies. We also 
describe the information we must include in the notice we send to the 
debtor before we report the debt to a credit reporting agency. Examples 
of administrative debts are overpayments of employees' pay and 
allowances, debts for civil money penalties imposed under section 
1140(b) of the Act, debts for unpaid fees for reimbursable services by 
SSA (e.g., disclosure of information), contractor debts, etc.
    In Sec. 422.310, we explain our rules relating to referring debts 
to the Department of the Treasury for administrative offset. 
Specifically, we explain that we will refer overdue debts over $25 to 
the Department of the Treasury for offset against any Federal payments 
due the debtor. We also describe the information we must include in the 
notice we send to the debtor before referring the debt to the 
Department of the Treasury for administrative offset.
    In Sec. 422.315, we explain that a debtor has the right to inspect 
or copy our records related to a debt before we refer the debt to a 
consumer or credit reporting agency or to the Department of the 
Treasury for administrative offset, and the procedures for exercising 
that right.
    In Sec. 422.317, we explain that a debtor has the right to have us 
review the debt. To exercise this right, the debtor must notify us 
within 60 calendar days from the date of our notice of proposed 
referral and give us evidence that he or she does not owe all or part 
of the debt, or we do not have the right to collect it. After our 
review of the evidence, we explain that we will issue written findings 
of our review. If the debtor requests review and submits evidence 
within the 60-day period, we will not refer the debt to consumer or 
credit reporting agencies or to the Department of the Treasury unless 
and until we have completed our review and sent our findings to the 
debtor that all or part of the debt is overdue and legally enforceable.

Electronic Version

    The electronic file of this document is available on the Federal 
Bulletin Board (FBB) at 9:00 a.m. on the date of publication in the 
Federal Register. To download the file, modem dial (202) 512-1387. The 
FBB instructions will explain how to download the file and the fee. The 
file is in WordPerfect and will remain on the FBB during the comment 
period.

Regulatory Procedures

Executive Order 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that these proposed rules do not meet the criteria for a 
significant regulatory action under Executive Order 12866. Thus, they 
were not subject to OMB review.

Regulatory Flexibility Act

    We certify that these proposed regulations will not have a 
significant impact on a substantial number of small entities. 
Therefore, a regulatory flexibility analysis, as provided in the 
Regulatory Flexibility Act, as amended, is not required.

Paperwork Reduction Act

    These proposed regulations will impose no new reporting or 
recordkeeping requirements requiring OMB clearance.

(Catalog of Federal Domestic Assistance Programs No. 96.001, Social 
Security--Disability Insurance; 96.002 Social Security--Retirement 
Insurance; 96.003 Social Security--Special Benefits for Persons Aged 
72 and Over; 96.004, Social Security--Survivors Insurance)

List of Subjects

20 CFR Part 404

    Administrative practice and procedure, Blind, Death benefits, 
Disability benefits, Old-Age, Survivors and Disability Insurance, 
Reporting and recordkeeping requirements, Social security.

20 CFR Part 422

    Administrative practice and procedure, Organization and functions 
(Government agencies), Social security.

    Dated: July 28, 1997.
John J. Callahan,
Acting Commissioner of Social Security.

    For the reasons set out in the preamble, we propose to amend 
subparts F and J of part 404 of chapter III of title 20 of the Code of 
Federal Regulations and to add a new subpart D to part 422 of chapter 
III of title 20 of the Code of Federal Regulations as follows:
    1. The authority citation for subpart F of Part 404 is revised to 
read as follows:

    Authority: Secs. 204, 205(a), and 702(a)(5) of the Social 
Security Act (42 U.S.C. 404, 405(a), and 902(a)); 31 U.S.C. 3720A.

    2. Section 404.520 is revised to read as follows:


Sec. 404.520  Referral of overpayments to the Department of the 
Treasury for tax refund offset--General.

    (a) The standards we will apply and the procedures we will follow 
before requesting the Department of the Treasury to offset income tax 
refunds due taxpayers who have an outstanding overpayment are set forth 
in Secs. 404.520 through 404.526. These standards and procedures are 
authorized by 31 U.S.C. 3720A and are implemented through Department of 
the Treasury regulations at 26 CFR 301.6402-6.
    (b) We will use the Department of the Treasury tax refund offset 
procedure to collect overpayments that are certain in amount, past due 
and legally enforceable, and eligible for tax refund offset under 
regulations issued by the Department of the Treasury. We will use these 
procedures to collect overpayments only from individuals who are not 
currently entitled to monthly Social Security benefits under title II 
of the Act. We will refer an overpayment to the Department of the 
Treasury for offset against tax refunds no later than 10 years after 
our right to collect the overpayment first accrued.
    3. Section 404.521 is amended by revising the introductory text to 
read as follows:


Sec. 404.521  Notice to overpaid individual.

    A request for reduction of a Federal income tax refund will be made 
only after we determine that an amount is owed and past due and send 
the overpaid individual written notice. Our notice of intent to collect 
an overpayment through tax refund offset will state:
* * * * *
    4. Section 404.526 is revised to read as follows:


Sec. 404.526  Tax refund insufficient to cover amount of overpayment.

    If a tax refund for a given taxable year is insufficient to recover 
an overpayment completely, the case will remain with the Department of 
the Treasury for offset, assuming that all criteria for offset continue 
to be met.
    5. Section 404.527 is added to read as follows:

[[Page 42442]]

Sec. 404.527  Additional methods for recovery of title II benefit 
overpayments.

    (a) General. In addition to the methods specified in Sec. 404.502 
and Sec. 404.520, an overpayment under title II of the Act is also 
subject to recovery under the rules in subpart D of part 422, provided:
    (1) The overpayment occurred after the individual has attained age 
18;
    (2) The overpaid individual is no longer entitled to benefits under 
title II of the Act; and
    (3) Pursuant to paragraph (b) of this section, we have determined 
that the overpayment is otherwise unrecoverable under section 204 of 
the Act.
    (b) When an overpayment is considered to be otherwise 
unrecoverable. An overpayment under title II of the Act is considered 
to be otherwise unrecoverable under section 204 of the Act if all of 
the following conditions are met:
    (1) Our billing system sequence has been completed (i.e., we have 
sent the individual an initial notice of the overpayment, a reminder 
notice, and a past-due notice) or collection activity has been 
suspended or terminated in accordance with the Federal Claims 
Collection Standards in 4 CFR 104.2 or 104.3.
    (2) We have not entered into an installment payment arrangement 
with the overpaid individual or, if we have entered into such an 
arrangement, the overpaid individual has failed to make any payment for 
two consecutive months.
    (3) The overpaid individual has not requested waiver pursuant to 
Sec. 404.506 or Sec. 404.522 or, after a review conducted pursuant to 
those sections, we have determined that we will not waive collection of 
the overpayment.
    (4) The overpaid individual has not requested reconsideration of 
the initial overpayment determination pursuant to Secs. 404.907 and 
404.409 or, after a review conducted pursuant to Sec. 404.913, we have 
affirmed, in whole or in part, the initial overpayment determination.
    (5) The overpayment cannot be recovered pursuant to Sec. 404.502 by 
adjustment of benefits payable to any individual other than the 
overpaid individual. For purposes of this paragraph, an overpayment 
will be deemed to be unrecoverable from any individual who was living 
in a separate household from the overpaid person at the time of the 
overpayment and did not receive the overpayment.
    6. In addition to the amendments set forth above, remove the 
acronym ``IRS'' and add, in its place, the words ``Department of the 
Treasury'' in the following places:
    (a) Section 404.521(b);
    (b) Section 404.522(b);
    (c) Section 404.523(a) and (c); and
    (d) Section 404.525.
    7. The authority citation for subpart J of Part 404 is revised to 
read as follows:

    Authority: Secs. 201(j), 204(f), 205(a), (b), (d)-(h), and (j), 
221, 225, and 702(a)(5) of the Social Security Act (42 U.S.C. 
401(j), 404(f), 405(a), (b), (d)-(h), and (j), 421, 425, and 
902(a)(5)); 31 U.S.C. 3720A; sec. 5, Pub. L. 97-455, 96 Stat. 2500 
(42 U.S.C. 405 note); secs. 5, 6(c)-(e), and 15, Pub. L. 98-460, 98 
Stat. 1802 (42 U.S.C. 421 note).

    8. Section 404.903 is amended by deleting the word ``and'' at the 
end of paragraph (r), replacing the period at the end of paragraph (s) 
with a semicolon, and adding paragraphs (t) and (u) to read as follows:


Sec. 404.903  Administrative actions that are not initial 
determinations.

* * * * *
    (t) Determining whether we will refer information about your 
overpayment to a consumer reporting agency (see Sec. 404.527 and 
Sec. 422.305 of this chapter); and
    (u) Determining whether we will refer your overpayment to the 
Department of the Treasury for collection by offset against Federal 
payments due you (see Sec. 404.527 and Sec. 422.310 of this chapter).

PART 422--ORGANIZATION AND PROCEDURES

    10. Subpart D is added to read as follows:

Subpart D--Claims Collection

Sec.
422.301 Material included in this subpart.
422.305 Report of overdue title II program overpayment debts to 
consumer reporting agencies.
422.306 Report of overdue administrative debts to credit reporting 
agencies.
422.310 Collection of overdue debts by administrative offset.
422.315 Review of our records related to the debt.
422.317 Review of the debt.

Subpart D--Claims Collection

    Authority: Secs. 204(f), 205(a), and 702(a)(5) of the Social 
Security Act (42 U.S.C. 404(f), 405(a), and 902(a)(5)); 31 U.S.C. 
3711(e); 31 U.S.C. 3716.


Sec. 422.301  Material included in this subpart.

    This subpart describes the procedures relating to collection of:
    (a) Overdue administrative debts, and
    (b) Overdue title II program overpayments described in Sec. 404.527 
of this chapter.


Sec. 422.305  Report of overdue title II program overpayment debts to 
consumer reporting agencies.

    (a) Debts we will report. We will report to consumer reporting 
agencies all overdue title II program overpayment debts over $25.
    (b) Notice to debtor. Before we report any such debt to a consumer 
reporting agency, we will send the debtor written notice of the 
following:
    (1) We have determined that payment of the debt is overdue;
    (2) We will refer the debt to a consumer reporting agency within 
not less than 60 calendar days after the date of the notice unless, 
within that 60-day period, the debtor pays the full amount of the debt 
or takes either of the actions described in paragraphs (b)(6) or (b)(7) 
of this section;
    (3) The specific information we will provide to the consumer 
reporting agency, including information that identifies the debtor 
(e.g., name, address, and social security number) and the amount, 
status, and history of the debt;
    (4) The debtor has the right to a complete explanation of the debt;
    (5) The debtor may dispute the accuracy of the information to be 
provided to the consumer reporting agency;
    (6) The debtor may request a review of the debt by giving us 
evidence showing that he or she does not owe all or part of the amount 
of the debt or that we do not have the right to collect it; and
    (7) The debtor may request an installment payment plan.
    (c) Disputing the information that we would send to consumer 
reporting agencies. If a debtor believes that the information we 
propose to send to consumer reporting agencies is incorrect, the debtor 
may ask us to correct such information. If, within 60 calendar days 
from the date of our notice described in paragraph (b) of this section, 
the debtor notifies us that any information to be sent to consumer 
reporting agencies is incorrect, we will not send the information to 
consumer reporting agencies until we determine the correct information.


Sec. 422.306  Report of overdue administrative debts to credit 
reporting agencies.

    (a) Debts we will report. We will report to credit reporting 
agencies all overdue administrative debts over $25. Some examples of 
administrative debts are as follows: overpayments of pay and allowances 
paid to employees, debts for civil monetary penalties imposed under 
section 1140(b) of the Act, debts for unpaid fees for reimbursable 
services

[[Page 42443]]

performed by SSA (e.g., disclosures of information), and contractor 
debts.
    (b) Notice to debtor. Before we report any administrative debt to a 
credit reporting agency, we will send the debtor written notice of the 
following:
    (1) We have determined that payment of the debt is overdue;
    (2) We will refer the debt to a credit reporting agency within not 
less than 60 calendar days after the date of the notice unless, within 
that 60-day period, the debtor pays the full amount of the debt or 
takes either of the actions described in paragraphs (b)(6) or (b)(7) of 
this section;
    (3) The specific information we will provide to the credit 
reporting agency, including information that identifies the debtor 
(e.g., name, address, social security number, and employer 
identification number) and the amount, status, and history of the debt.
    (4) the debtor has the right to a complete explanation of the debt;
    (5) the debtor may dispute the accuracy of the information to be 
provided to the credit reporting agency;
    (6) the debtor may request a review of the debt by giving us 
evidence showing that he or she does not owe all or part of the amount 
of the debt or that we do not have the right to collect it; and
    (7) the debtor may request an installment payment plan.


Sec. 422.310  Collection of overdue debts by administrative offset.

    (a) Referral to the Department of the Treasury for offset. We will 
recover overdue debts by offsetting Federal payments due the debtor 
through the Treasury Offset Program (TOP). TOP is a Governmentwide 
delinquent debt matching and payment offset process operated by the 
Department of the Treasury, whereby debts owed to the Federal 
Government are collected by offsetting them against Federal payments 
owed the debtor.
    (b) Debts we will refer. We will refer for administrative offset 
all overdue debts over $25.
    (c) Notice to debtor. Before we refer any debt for collection by 
administrative offset, we will send the debtor written notice that:
    (1) We have determined that payment of the debt is overdue;
    (2) We will refer the debt for administrative offset within not 
less than 60 calendar days after the date of the notice unless, within 
that 60-day period, the debtor pays the full amount of the debt or 
takes either of the actions described in paragraphs (c)(4) or (c)(5) of 
this section;
    (3) The debtor may inspect or copy our records relating to the 
debt;
    (4) The debtor may request a review of the debt by giving us 
evidence showing that the debtor does not owe all or part of the amount 
of the debt or that we do not have the right to collect it; and
    (5) The debtor may request an installment payment plan.


Sec. 422.315  Review of our records related to the debt.

    (a) Notification by the debtor. The debtor may request to inspect 
or copy our records related to the debt.
    (b) Our response. In response to a request from the debtor 
described in paragraph (a) of this section, we will notify the debtor 
of the location and time at which the debtor may inspect or copy our 
records related to the debt. We may also, at our discretion, mail to 
the debtor copies of the records relating to the debt.


Sec. 422.317  Review of the debt.

    (a) Notification and presentation of evidence by the debtor. A 
debtor who receives a notice described in Secs. 422.305(b), 422.306(b), 
or 422.310(c) has a right to have us review the debt. To exercise this 
right, within 60 calendar days from the date of our notice, the debtor 
must notify us and give us evidence that he or she does not owe all or 
part of the debt or that we do not have the right to collect it. If the 
debtor does not notify us and give us this evidence within the 60 
calendar-day period, we may take the action described in our notice.
    (b) Review of the evidence. If the debtor notifies us and presents 
evidence within the 60 calendar day period described in paragraph (a) 
of this section, we will not take the action described in our notice 
unless and until we consider all of the evidence and send the debtor 
our findings that all or part of the debt is overdue and legally 
enforceable.
    (c) Findings by SSA. Following our review of all of the evidence 
presented, we will issue written findings, including the supporting 
rationale for the findings. Issuance of these findings will be the 
final Agency action on the debtor's request for review. If we find that 
the debt is not overdue or we do not have the right to collect it, we 
will not send information about the debt to consumer or other credit 
reporting agencies or refer the debt to the Department of the Treasury 
for administrative offset.

[FR Doc. 97-20742 Filed 8-6-97; 8:45 am]
BILLING CODE 4190-29-P


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