[Federal Register Volume 60, Number 7 (Wednesday, January 11, 1995)]
[Notices]
[Pages 2809-2811]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-650]


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DEPARTMENT OF THE TREASURY
Financial Management Service


Privacy Act of 1974, New System of Records

AGENCY: Financial Management Service, Treasury.

ACTION: Notice of proposed system of records.

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SUMMARY: This notice sets forth a system of records, the Debt 
Collection Operations System. The purpose of this system is to maintain 
a record of individuals and entities that are indebted to various 
Federal Government departments and agencies and whose accounts are 
being serviced for collection by the Financial Management Service 
(FMS), in accordance with written agreements reached between the 
relevant agency (``client'') and FMS. The records ensure that: 
Appropriate collection action on debtors' accounts is taken and 
properly tracked; monies collected are credited; and accounts are 
returned to the appropriate agency at the time the account is collected 
or closed.

DATES: Comments must be received no later than February 10, 1995. The 
proposed system of records will be effective February 21, 1995, unless 
FMS receives comments which would result in a contrary determination.

ADDRESSES: Comments must be submitted to the Debt Collection Operations 
Staff, Financial Management Service, 401 14th Street SW., room 415 B, 
Washington, DC 20227. Comments received will be available for 
inspection at the same address between the hours of 9 a.m. and 4 p.m. 
Monday through Friday.

FOR FURTHER INFORMATION CONTACT:
Kathleen Downs or Marty Mills, Debt Collection Operations Staff, (202) 
874-6670.

SUPPLEMENTARY INFORMATION: The Debt Collection Operations System is 
established to collect and store information on individuals and 
entities indebted to various Federal Government departments and 
agencies which have contracted with the Financial Management Service 
(FMS) for the servicing or collection of such indebtedness.
    The Financial Management Service has been designated by the Office 
of Management and Budget as lead agency in credit management and debt 
collection. In this capacity, FMS works with other Federal departments 
and agencies to implement sound and effective credit management/debt 
collection policies, procedures, and standards; develops and 
disseminates procedures and standards; provides training to agency 
personnel on credit-related subjects; and maintains and enhances such 
debt collection tools as Federal employee salary offset, tax refund 
offset, and the use of private collection agencies. In furtherance of 
the goal to improve governmentwide credit management/debt collection, 
FMS has developed the capability to service and collect the debts of 
other agencies in accordance with the requirements of the Federal 
Claims Collection Act of 1966, the Debt Collection Act of 1982, as 
amended, and the Deficit Reduction Act of 1984, as amended.

[[Page 2810]]

    FMS' capability to service and collect debts includes the 
development of a system which will enable FMS to track, account by 
account, information identifying individual debtors, payments due and 
made and actions taken to enforce collection on delinquent accounts. 
Given the nature of the information that will be maintained and its 
proposed use, the Privacy Act of 1974, as amended, 5 U.S.C. 552a, 
requires FMS to give general notice and seek public comments.

    Dated: January 3, 1995.
Alex Rodriguez,
Deputy Assistant Secretary (Administration).
Treasury/FMS .014
System name:
    Debt Collection Operations System
System location:
    The Debt Collection Operations Staff, Financial Management Service, 
U.S. Department of the Treasury, 401 14th Street, SW., Washington, DC 
20227.
Categories of individuals covered by the system:
    Records are maintained on individuals and entities that are 
financially indebted to the U.S. Government through one or more of its 
departments and agencies and are the result of participation in a 
Federal direct or guaranteed loan program, the assessment of a fine, 
fee, or penalty, an overpayment or advance, or other extensions of 
credit such as would result from sales of goods or services.
Categories of records in the system:
    Information varies, depending on the individual debtor, the type of 
indebtedness and the agency to which monies are owed. The system of 
records contains information pertaining to: (1) Individuals and 
commercial organizations, such as name, Taxpayer Identification Number 
(i.e., Social Security Number or Employer Identification Number), work 
and home addresses, and work and home phone numbers; (2) the 
indebtedness, such as the original amount of the debt, the date the 
debt originated, the amount of the delinquency/default, the date of 
delinquency/default, basis of the debt, amounts accrued for interest, 
penalties, and administrative costs, and payments on the account; (3) 
actions taken to enforce recovery of the debt, such as copies of demand 
letters/invoices, and documents required for the referral of accounts 
to collection agencies, or for litigation; and (4) referring or client 
agency, such as name, phone number, and address of the agency contact.
Authority for maintenance of the system:
    Federal Claims Collection Act of 1966 (Pub. L. 89-508), as amended 
by the Debt Collection Act of 1982 (Pub. L. 97-365, as amended), and 
the Deficit Reduction Act of 1984 (Pub. L. 98-369, as amended); 31 
U.S.C. 37, Subchapter I (General) and Subchapter II (Claims of the U.S. 
Government).
Purpose:
    The purpose of this system is to maintain a record of individuals 
and entities that are indebted to the various Federal Government 
departments and agencies and whose accounts are being serviced or 
collected by the Financial Management Service (FMS), in accordance with 
written agreements reached between the relevant agency (``client'') and 
FMS. The records ensure that: appropriate collection action on debtors' 
accounts is taken and properly tracked, monies collected are credited, 
and accounts are returned to the appropriate client at the time the 
account is collected or closed.
Routine uses of records maintained in the system, including categories 
of users and the purposes of such uses:
    These records and information in these records may be used to 
disclose information to:
    1. Appropriate Federal, state, local or foreign agencies 
responsible for investigating or implementing a statute, rule, 
regulation, order or license;
    2. A court, magistrate, or administrative tribunal in the course of 
presenting evidence, including disclosures to opposing counsel or 
witnesses in the course of civil discovery, litigation, or settlement 
negotiations in response to a court-ordered subpoena or in connection 
with criminal law proceedings;
    3. A congressional office in response to an inquiry made at the 
request of the individual or entity to whom the record pertains;
    4. The Internal Revenue Service for the purposes of: Effecting an 
administrative offset against the debtor's tax refund to recover a 
delinquent debt owed to the U.S. Government by the debtor; or, 
obtaining the mailing address of a taxpayer/debtor in order to locate 
the taxpayer/debtor to collect or compromise a Federal claim against 
the taxpayer/debtor in accordance with 31 U.S.C. 3711, 3717, and 3718 
and 26 U.S.C. 6103(m)(2);
    5. The Department of Justice for the purpose of litigating to 
enforce collection of a delinquent debt or to obtain the Department of 
Justice's concurrence in a decision to compromise, suspend, or 
terminate collection action on a debt with a principal amount in excess 
of $100,000 or such higher amount as the Attorney General may, from 
time to time, prescribe in accordance with 31 U.S.C. 3711(a).
    6. The Department of Defense or the U.S. Postal Service or other 
Federal agency for the purpose of conducting an authorized computer 
matching program in compliance with the Privacy Act of 1974, as 
amended, so as to identify and locate individuals receiving Federal 
payments (including, but not limited to, salaries, wages, and benefits) 
for the purpose of requesting voluntary repayment or implementing 
Federal employee salary offset or administrative offset procedures;
    7. The Department of Defense or the U.S. Postal Service or other 
Federal agency for the purpose of effecting an administrative offset 
against Federal payments certified to be paid to the debtor to recover 
a delinquent debt owed to the U.S. Government by the debtor; and
    8. Any creditor Federal agency seeking assistance for the purpose 
of seeking voluntary repayment of a debt or implementing Federal 
employee salary offset or administrative offset in the collection of an 
unpaid financial obligation.
Disclosure to consumer reporting agencies:
    Debt information concerning a Government claim against a debtor is 
also furnished in accordance with 5 U.S.C. 552a(b)(12) and section 3 of 
the Debt Collection Act of 1982, as amended (Pub. L. 97-365), to 
consumer reporting agencies, as defined by the Fair Credit Reporting 
Act, 15 U.S.C. 1681a(f), to encourage repayment of an overdue debt.
Policies and practices for storing, retrieving, accessing, retaining, 
and disposing or records in the system:
Storage
    Records are maintained on magnetic disc, tape, and hard copy.
Retrievability:
    Records are retrieved by name or Taxpayer Identification Number 
(i.e., Social Security Number or Employer Identification Number).
Safeguards:
    All officials accessing the system of records will do so on a need-
to-know basis only, as authorized by the System Manager. Procedural and 
physical safeguards are utilized, such as accountability, receipt 
records, and specialized communications security.

[[Page 2811]]

The data system has an internal mechanism to restrict access to 
authorized officials. Hard-copy records are held in steel cabinets, 
with access limited by visual controls and/or lock system. During 
normal working hours, files are attended by responsible officials; 
files are locked up during non-working hours. The building is patrolled 
by uniformed security guards.
Retention and disposal:
    Hard-copy records are returned to the agency which had contracted 
for servicing or collection with FMS at the time an individual account 
is resolved through collection, compromise, or write-off/close out or 
at the agency's request. Summary information, such as results of 
collection action undertaken, for the purpose of producing management 
reports is retained for a period of five (5) years.
System manager and address:
    System Manager, Debt Collection Operations Staff, Financial 
Management Service, 401 14th Street SW., Washington, DC 20027.
Notification procedure:
    Inquiries under the Privacy Act of 1974 shall be addressed to the 
Disclosure Officer, Financial Management Service, 401 14th Street, SW, 
Washington, DC 20227. All individuals making inquiries should provide 
with their request as much descriptive matter as is possible to 
identify the particular record desired. The System Manager will advise 
as to whether FMS maintains the record requested by the individual.
Record access procedures:
    Individuals requesting information under the Privacy Act of 1974 
concerning procedures for gaining access or contesting records should 
write to the Disclosure Officer. All individuals are urged to examine 
the rules of the U.S. Department of the Treasury published in 31 CFR 
part 1, subpart C, appendix G, concerning requirements of this 
Department with respect to the Privacy Act of 1974.
Contesting record procedures:
    See ``Record Access Procedures'' above.
Record source categories:
    Information in this system of records is obtained from the 
individual or entity, creditor agencies, Federal employing agency, 
collection agencies, credit bureaus, and Federal, state and local 
agencies furnishing identifying information and/or address of debtor 
information.
Exemptions claims for the system:
    None.

[FR Doc. 95-650 Filed 1-10-95; 8:45 am]
BILLING CODE 4810-35-M