Terminating & Suspending Collection . WHY DO AGENCIES TERMINATE OR SUSPEND COLLECTION ACTION?. Federal law (31 U.S.C. 3711 and 31 CFR Parts 900-904):
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
WHY DO AGENCIES TERMINATE OR SUSPEND COLLECTION ACTION?
Federal law (31 U.S.C. 3711 and 31 CFR Parts 900-904):
In summary, agencies have an affirmative duty to collect their delinquent debts. They may be relieved of this duty by terminating or suspending collection action under standards provided for in the FCCS and their own agency regulations.
The decision to terminate or suspend collection action must be clearly made, and must be justifiable under established standards.
WHAT DO TERMINATION AND SUSPENSION MEAN?
Note: When an agency terminates or suspends collection action, it may continue“passive collection” action if such action is not prohibited by law and is appropriate. Passive collection action includes maintaining a lien on collateral securing the debt without taking action to liquidate the collateral; or referring the debt to the Treasury Offset Program (TOP); or scheduling the debt for sale through an asset sales program.
WHEN SHOULD AN AGENCY TERMINATE OR SUSPEND COLLECTION ACTION?
The general rule is that the agency should terminate or suspend collection action on a debt when it is either not economically worthwhile to continue collection action on the debt, or collection action is otherwise inappropriate.
There is an exception to the general rule: when a significant enforcement policy is involved or recovery of a judgment is a prerequisite to imposition of administrative sanctions, it is inappropriate to terminate or suspend collection action.
There are specific criteria in the Federal Claims Collection Standards to help agencies evaluate when to terminate or suspend collection action.
Under the FCCS, agencies may terminate collection action when:
WHEN DOES AN AGENCY NEED THE CONCURRENCE OF THE DEPARTMENT OF JUSTICE (DOJ) TO TERMINATE COLLECTION ACTION?
WHAT ARE THE EXECEPTIONS TO THE REQUIREMENT TO OBTAIN DOJ CONCURRENCE?
DOJ concurrence not required to write-off debts, because write-off is a concept different from termination of collection action and is done under different rules.
DOJ Concurrence not required for write-off.
Department of Justice
Civil Division, Commercial Litigation Branch
1100 L Street NW, Room 10057
Washington, DC 20530
HOW DOES AN AGENCY REQUEST CONCURRENCE FROM DOJ?
WHEN IS SUSPENSION OF COLLECTION ACTION APPROPRIATE?
An agency may suspend collection action on a debt if any of the following apply:
DOJ concurrence is not required if any of the following apply:
WHEN IS DOJ CONCURRENCE NEEDED TO SUSPEND COLLECTION ACTION ON A DEBT?
You have learned the rules for terminating and suspending collection action.
CONGRATULATIONS - You are now “Terminators”.
It is now time to learn more about write-off.
PROCEED TO MY NEXT PART BY CLICKING ON THE ARROW!