22 C.F.R. PART 1506—COLLECTION OF CLAIMS
Title 22 - Foreign Relations
Authority: 31 U.S.C. 3711, and 4 CFR parts 101 through 105.
Source: 53 FR 5567, Feb. 25, 1988, unless otherwise noted.
These regulations prescribe the procedures to be used by the African Development Foundation (ADF) in the collection of claims owed to the African Development Foundation and to the United States. Except as otherwise provided by law, the African Development Foundation will conduct administrative actions to collect claims (including offset, compromise, suspension, termination, disclosure and referral) in accordance with the Federal Claim Collection Standards (“FCCS”) of the General Accounting Office and Department of Justice, 4 CFR parts 101–105. A debtor's liability arising from a particular contract or transaction shall be considered a single claim for purposes of the monetary ceilings of the FCCS. (a) Except as otherwise provided by statute, loan agreement or contract, the African Development Foundation will assess: (1) Late payment charges (interest) on unpaid claims at the prompt payment interest rate established by the Secretary of the Treasury as the current value of funds to the United States Treasury. (2) Penalty charges at 6 percent a year on any portion of a claim that is delinquent for more than 90 days. (3) Administrative charges to cover the costs of processing and calculating delinquent claims. (b) Late payment charges shall be computed from the date of mailing or hand delivery of the notice of the claim and interest requirements. (c) Waiver. (1) Late payment charges are waived on any claim or any portion of a claim which is paid within 30 days after the date on which late payment charges begin to accrue. (2) The 30 day period may be extended on a case-by-case basis if it is determined that an extension is appropriate. (3) The African Development Foundation may waive late payment, penalty and administrative charges under the FCCS criteria for the compromise of claims (4 CFR part 103), or upon a determination that collection of the charges would be against equity and good conscience or not in the best interest of the United States, including for example: (i) Pending consideration of a request for reconsideration, administrative review or waiver under a permissive statute, (ii) If repayment of the full amount of the debt is made after the date upon which interest and other charges become payable and the estimated costs of recovering the residual balance exceeds the amount owed, or (iii) If collection of interest or other charges would jeopardize collection of the principal of the claim. (a) A total of three progressively stronger written demands at approximately 30-day intervals will normally be made, unless a response or other information indicates that additional written demands would either be unnecessary or futile. When necessary to protect the Government's interest, written demand may be preceded by other appropriate actions under the Federal Claims Collection Standards, including immediate referral for litigation and/or offset. (b) The initial written demand for payment shall inform the debtor of: (1) The basis for the claim; (2) The amount of the claim; (3) The date when payment is due, 30 days, from date of mailing or hand delivery of the intial demand for payment; (4) The provision for late payment (interest), penalty and administrative charges, if payment is not received by the due date. (a) Collection by administrative offset will be undertaken only on claims which are liquidated or certain in amount. Offset will be used whenever feasible and not otherwise prohibited. Offset is not required to be used in every instance and consideration should be given to the debtor's financial condition and the impact of offset on Foundation activities. (b) The procedures for offset in this part do not apply to the offset of Federal salaries under 5 U.S.C. 5514. (c) Before offset is made, the Foundation will provide the debtor with written notice informing the debtor of: (1) The nature and amount of the claim; (2) The intent of the Foundation to collect by administrative offset, including asking the assistance of the other Federal agencies to help in the offset whenever possible, if the debtor has not made payment by the payment due date or has not made an arrangement for payment by the payment due data; (3) The right of the debtor to inspect and copy the records of the Foundation related to the claim; (4) The right of the debtor to a review of the claim within the Foundation. If the claim is disputed in full or part, the debtor shall respond to the demand in writing by making a request to the billing office for a review of the claim within the Foundation by the payment due date stated in the notice. The debtor's written response shall state the basis for the dispute. If only part of the claim is disputed, the undisputed portion must be paid by the date stated in the notice to avoid late payment, penalty and administrative charges. If the African Development Foundation later sustains or amends its determination, it shall notify the debtor of its intent to collect the claim, with any adjustments based on the debtor's response, by administrative offset, unless payment is received within 30 days of the mailing of the notification of its decision following a review of the claim. (5) The right of the debtor to offer to make a written agreement to repay the amount of the claim. (6) The notice of offset need not include the requirements of paragraph (c) (3), (4) or (5) of this section if the debtor has been informed of the requirements at an earlier stage in the administrative proceedings, e.g., if they were included in a final contracting officer's decision. (d) The African Development Foundation will promptly make requests for offset to other agences known to be holding funds payable to a debtor and, when appropriate, place the name of the debtor on the “List of Contractors Indebted to the United States.” The African Development Foundation will provide instructions to the collecting agency for the transfer of funds. (e) The African Development Foundation will promptly process requests for offset from other agencies and transfer funds to the requesting Foundation upon receipt of the written certification required by §102.3 of the FCCS. (a) The African Development Foundation may disclose delinquent debts, other than delinquent debts of current Federal employees, to consumer reporting agencies in accordance with 31 U.S.C. 3711(f) and the FCCS. (b) The African Development Foundation may enter into contracts with collection agencies in accordance with 31 U.S.C. 3718 and the FCCS.
Title 22: Foreign Relations
PART 1506—COLLECTION OF CLAIMS
Section Contents
§ 1506.1 Purpose.
§ 1506.2 Applicability of Federal Claims Collection Standards.
§ 1506.3 Subdivision of claims.
§ 1506.4 Late payment, penalty and administrative charges.
§ 1506.5 Demand for payment.
§ 1506.6 Collection by offset.
§ 1506.7 Disclosure to consumer reporting agencies and contracts with collection agencies.
§ 1506.1 Purpose.
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§ 1506.2 Applicability of Federal Claims Collection Standards.
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§ 1506.3 Subdivision of claims.
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§ 1506.4 Late payment, penalty and administrative charges.
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§ 1506.5 Demand for payment.
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§ 1506.6 Collection by offset.
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§ 1506.7 Disclosure to consumer reporting agencies and contracts with collection agencies.
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