Mandatory referral for cross-servicing.

CFR · 2024-01-01 · US · Title 7

(a) Agencies will transfer to Treasury any legally enforceable nontax debt in excess of $25, or combination of debts less than $25 that exceeds $25 (in the case of a debtor whose taxpayer identification number (TIN) is unknown the applicable threshold is $100), that has or have been delinquent for a period of 180 days in accordance with 31 CFR 285.12 so that Treasury may take appropriate action on behalf of the creditor agency to collect or compromise, or to suspend or terminate collection, of the debt, including use of debt collection centers and private collection contractors to collect the debt or terminate collection action. Agencies that transfer delinquent debts to Fiscal Service for the purposes of debt collection and that rely on Fiscal Service to submit the transferred debts for administrative offset on the agency's behalf must transfer the debts to Fiscal Service no later than 120 days after the debts become delinquent in order to satisfy the 120-day notice requirement for purposes of administrative offset in accordance with 31 CFR 285.12(c)(1). For accounting and reporting purposes, the debt remains on the books and records of the agency which transferred the debt. (b) The requirement of paragraph (a) of this section does not apply to any debt that: (1) Is in litigation or foreclosure (see 31 CFR 285.12 (d)(2) for definition); (2) Will be disposed of under an approved asset sale program (see 31 CFR 285.12(d)(3)(i) for definition); (3) Has been referred to a private

official document · source cfr-2024 · id 7:§ 3.31