Administrative Debt Collection Procedures, 2742-2743 [2016-00313]

Download as PDF 2742 Federal Register / Vol. 81, No. 11 / Tuesday, January 19, 2016 / Rules and Regulations FEDERAL TRADE COMMISSION 16 CFR Part 1 Administrative Debt Collection Procedures AGENCY: Federal Trade Commission (FTC). ACTION: Final rule. The FTC is publishing procedures for the administrative collection of debts, including those arising under judgments and orders of the Commission. These procedures, where applicable, will allow the use of administrative offset and tax refund offset to satisfy such debts. The use of these tools is expected to enhance the FTC’s enforcement and collection efforts. The FTC is also making a technical revision to its existing rule for administrative garnishment of nonFederal wages to update the name of the Treasury Department agency responsible for cross-servicing debts. DATES: This rule is effective on January 19, 2016. FOR FURTHER INFORMATION CONTACT: Stephen Dowdell, Enforcement Division, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW., Stop CC–9528, Washington, DC 20580, (202) 326–2814. SUPPLEMENTARY INFORMATION: The FTC is issuing final rules to publish procedures to use debt collection tools authorized by Government-wide Federal Claims Collection Standards (‘‘FCCS’’) and applicable Federal debt collection statutes for amounts owed to the United States. These rules supplement and complement the Commission’s existing administrative wage garnishment rule for non-Federal wages, 16 CFR 1.100, to collect amounts that may be owed to the FTC, including amounts owed under Commission orders and judgments. These additional procedures, where applicable, will enable the use of administrative offset against other Federal payments that may be due to the debtor, including a tax refund offset, to satisfy such debts. These rules are not intended to, and do not create, any separate or additional rights to notice or opportunity to challenge the amount or validity of debts that have already been reduced to judgment or are otherwise legally final and binding, such as debts arising from judgments or orders entered upon the consent or agreement of the debtor. (In addition, the FTC is updating 16 CFR 1.100 to substitute the ‘‘Bureau of the Fiscal Service’’ for the former name of that agency, the ‘‘Financial Management Service.’’) asabaliauskas on DSK5VPTVN1PROD with RULES SUMMARY: VerDate Sep<11>2014 15:52 Jan 15, 2016 Jkt 238001 These rules do not require notice and public comment under the Administrative Procedure Act, because they are agency rules of practice and adopt applicable Government-wide regulations without material change. See 5 U.S.C. 553(b)(A) & (B). Similarly, the Commission also finds good cause to dispense with the 30-day delay in the effective date normally required by the Administrative Procedure Act. 5 U.S.C. 553(d). No hardship will be imposed on debtors by the rules’ immediate implementation. Rather, the public will benefit because the rule revisions codify procedures governing the use of debt collection tools authorized by the FCCS and applicable Federal debt collection statutes. The rules have two parts. Under Subpart P, the Commission’s administrative debt collection activities shall be conducted in accordance with applicable Government-wide debt collection regulations, including the Federal Claims Collection Standards (FCCS), 31 CFR parts 900–904, jointly promulgated by the Departments of Justice and Treasury, and related Treasury debt collection regulations, 31 CFR part 285, utilized when the Commission refers a debt to Treasury for collection, including the centralized offset of Federal payments by Treasury. Furthermore, consistent with 31 U.S.C. 3716(b)(1), Subpart P expressly adopts, without change, applicable FCCS provisions governing the use of administrative offset in Federal debt collection activities. Subpart Q applies to tax refund offsets, and sets forth the procedures that shall apply when the Commission refers a debt to Treasury for collection by such means, consistent with the Federal statutes governing administrative offset generally (31 U.S.C. 3716) and tax refund offset specifically (31 U.S.C. 3720A), and the corresponding provisions of the FCCS and Treasury part 285 regulations, supra. List of Subjects in 16 CFR Part 1 Administrative practice and procedure, Claims, Debts, Garnishment of wages, Hearing and appeal procedures, Pay administration, Salaries, Wages. For the reasons stated in the preamble, the Federal Trade Commission amends part 1, title 16, Code of Federal Regulations, as follows: PART 1—GENERAL PROCEDURES 1. The authority citation for part 1 continues to read as follows: ■ Authority: Sec. 6, 38 Stat. 721 (15 U.S.C. 46), unless otherwise noted. PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 § 1.100 [Amended] 2. Amend § 1.100 by removing from paragraph (a) the phrase ‘‘Financial Management Service’’ and adding in its place the phrase ‘‘Bureau of the Fiscal Service’’. ■ § 1.102–1.109 [Added and Reserved] 3. In subpart O, add and reserve §§ 1.102–1.109. ■ 4. Add new subparts P and Q to read as follows: ■ Subpart P—Administrative Debt Collection, Including Administrative Offset Sec. 1.110 Application of Government-wide administrative claims collections standards and adoption of administrative offset regulations. 1.111–1.119 [Reserved] Subpart Q—Tax Refund Offset 1.120 Purpose. 1.121 Notification of intent to collect. 1.122 Commission action as a result of consideration of evidence submitted in response to the notice of intent. 1.123 Change in notification to Bureau of the Fiscal Service. 1.124 Interest, penalties, and costs. Subpart P—Administrative Debt Collection, Including Administrative Offset Authority: 31 U.S.C. 3701 et seq. § 1.110 Application of Government-wide administrative claims collections standards and adoption of administrative offset regulations. (a) The Commission shall apply the Federal Claims Collection Standards (FCCS), 31 CFR parts 900–904, in the administrative collection, offset, compromise, suspension, termination, and referral of collection activity for civil claims for money, funds, or property, as defined by 31 U.S.C. 3701(b), unless specific Federal agency statutes or regulations apply to such activities or, as provided for by Title 11 of the United States Code, when the claims involve bankruptcy. The Commission shall also follow Department of Treasury regulations set forth at 31 CFR part 285, as applicable, for administrative debt collection, including centralized offset of federal payments to collect non-tax debts that may be owed to the Commission, 31 CFR 285.5. Nothing in this subpart shall be construed to supersede or require the Commission to provide additional notice or other procedures that may have already been provided or afforded to a debtor in the course of administrative or judicial litigation or otherwise. E:\FR\FM\19JAR1.SGM 19JAR1 Federal Register / Vol. 81, No. 11 / Tuesday, January 19, 2016 / Rules and Regulations (b) For purposes of 31 U.S.C. 3716(b)(1), the Commission adopts without change the regulations on collection by administrative offset set forth at 31 CFR 901.3 and other relevant sections of the FCCS applicable to such offset. §§ 1.111–1.119 [Reserved] Subpart Q—Tax Refund Offset Authority: 31 U.S.C. 3716 and 3720A, 31 CFR 285.2(c). § 1.120 Purpose. This subpart establishes procedures for the Commission’s referral of pastdue legally enforceable debts to the Department of the Treasury’s Bureau of the Fiscal Service (Fiscal Service) for offset against the tax refund payments of the debtor, consistent with applicable Fiscal Service regulations and definitions set forth in 31 CFR 285.2 and 285.5. asabaliauskas on DSK5VPTVN1PROD with RULES § 1.121 Notification of intent to collect. (a) Notification before tax refund offset. Reduction of a tax refund payment will be made only after the Commission makes a determination that an amount is owed and past-due and gives or makes a reasonable attempt to give the debtor 60 days written notice of the intent to collect by tax refund offset. (b) Contents of notice. The Commission’s notice of intent to collect by tax refund offset will state: (1) The amount of the debt; (2) That unless the debt is repaid within 60 days from the date of the notice, the Commission intends to collect the debt by requesting a reduction of any amounts payable to the debtor as a Federal tax refund payment by an amount equal to the amount of the debt and all accumulated interest and other charges; (3) That the debtor, within 60 days from the date of the notice, has an opportunity to make a written agreement to repay the amount of the debt, unless such opportunity has previously been provided; (4) A mailing address for forwarding any written correspondence and a contact name and a telephone number for any questions; and (5) That the debtor may present evidence to the Commission that all or part of the debt is not past due or legally enforceable by: (i) Sending a written request for a review of the evidence to the address provided in the notice; (ii) Stating in the request the amount disputed and the reasons why the debtor believes that the debt is not past due or is not legally enforceable; and VerDate Sep<11>2014 15:52 Jan 15, 2016 Jkt 238001 (iii) Including in the request any documents that the debtor wishes to be considered or stating that the additional information will be submitted within the remainder of the 60-day period. (c) A debtor may dispute the existence or amount of the debt or the terms of repayment, except with respect to debts established by a judicial or administrative order. In those cases, the debtor may not dispute matters or issues already settled, litigated, or otherwise established by such order, including the amount of the debt or the debtor’s liability for that debt, except to the extent that the debtor alleges that the amount of the debt does not reflect payments already made to repay the debt in whole or part. § 1.122 Commission action as a result of consideration of evidence submitted in response to the notice of intent. (a) Consideration of evidence. If, in response to the notice provided to the debtor under § 1.121, the Commission is notified that the debtor will submit additional evidence, or the Commission receives additional evidence from the debtor within the prescribed time, tax refund offset will be stayed until the Commission can: (1) Consider the evidence presented by the debtor; (2) Determine whether all or a portion of the debt is still past due and legally enforceable; and (3) Notify the debtor of its determination, as set forth in paragraph (b) of this section. (b) Commission action on the debt. (1) If, after considering any additional evidence from the debtor, the Commission determines that the debt remains past-due and legally enforceable, the Commission will notify the debtor of its intent to refer the debt to the Fiscal Service for offset against the debtor’s Federal tax refund payment, including whether the amount of the debt remains the same or is modified; or (2) If, after considering any additional evidence from the debtor, the Commission determines that no part of the debt remains past-due and legally enforceable, the Commission will so notify the debtor and will not refer the debt to the Fiscal Service for offset against the debtor’s Federal tax refund payment. § 1.123 Change in notification to Bureau of the Fiscal Service. After the Commission sends the Fiscal Service notification of a debtor’s liability for a debt, the Commission will promptly notify the Fiscal Service if the Commission: (a) Determines that there is a material error or other material change in the PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 2743 information contained in the notification, including in the amount of the debt, subject to any additional due process requirements, where applicable, under this subpart or the Federal Claims Collection Standards, if the amount of debt has increased; (b) Receives a payment or credits a payment to the account of the debtor named in the notification that reduces the amount of the debt referred to Fiscal Service for offset; or (c) Otherwise concludes that such notification is appropriate or necessary. § 1.124 Interest, penalties, and costs. To the extent permitted or required by 31 U.S.C. 3717 or other law, regulation, or order, all interest, penalties, and costs applicable to the debt or incurred in connection with its referral for collection by tax refund offset will be assessed on the debt and thus increase the amount of the offset. By direction of the Commission. Donald S. Clark, Secretary. [FR Doc. 2016–00313 Filed 1–15–16; 8:45 am] BILLING CODE 6750–01–P SECURITIES AND EXCHANGE COMMISSION 17 CFR PARTS 229 and 239 [Release No. 33–10003; File No. S7–01–16] RIN 3235–AL88 Simplification of Disclosure Requirements for Emerging Growth Companies and Forward Incorporation by Reference on Form S–1 for Smaller Reporting Companies Securities and Exchange Commission. ACTION: Interim final rule; request for comment. AGENCY: The Securities and Exchange Commission (‘‘Commission’’) is adopting interim final amendments to its rules and forms to implement Sections 71003 and 84001 of the Fixing America’s Surface Transportation (‘‘FAST’’) Act, which require that the Commission revise Forms S–1 and F–1 to permit emerging growth companies to omit financial information for certain historical periods and revise Form S–1 to permit forward incorporation by reference for smaller reporting companies. DATES: Effective date: The interim final rule is effective on January 19, 2016. Comment date: Comments on the interim final rules should be received on or before February 18, 2016. SUMMARY: E:\FR\FM\19JAR1.SGM 19JAR1

Agencies

[Federal Register Volume 81, Number 11 (Tuesday, January 19, 2016)]
[Rules and Regulations]
[Pages 2742-2743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-00313]



[[Page 2742]]

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FEDERAL TRADE COMMISSION

16 CFR Part 1


Administrative Debt Collection Procedures

AGENCY: Federal Trade Commission (FTC).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The FTC is publishing procedures for the administrative 
collection of debts, including those arising under judgments and orders 
of the Commission. These procedures, where applicable, will allow the 
use of administrative offset and tax refund offset to satisfy such 
debts. The use of these tools is expected to enhance the FTC's 
enforcement and collection efforts. The FTC is also making a technical 
revision to its existing rule for administrative garnishment of non-
Federal wages to update the name of the Treasury Department agency 
responsible for cross-servicing debts.

DATES: This rule is effective on January 19, 2016.

FOR FURTHER INFORMATION CONTACT: Stephen Dowdell, Enforcement Division, 
Bureau of Consumer Protection, Federal Trade Commission, 600 
Pennsylvania Avenue NW., Stop CC-9528, Washington, DC 20580, (202) 326-
2814.

SUPPLEMENTARY INFORMATION: The FTC is issuing final rules to publish 
procedures to use debt collection tools authorized by Government-wide 
Federal Claims Collection Standards (``FCCS'') and applicable Federal 
debt collection statutes for amounts owed to the United States. These 
rules supplement and complement the Commission's existing 
administrative wage garnishment rule for non-Federal wages, 16 CFR 
1.100, to collect amounts that may be owed to the FTC, including 
amounts owed under Commission orders and judgments. These additional 
procedures, where applicable, will enable the use of administrative 
offset against other Federal payments that may be due to the debtor, 
including a tax refund offset, to satisfy such debts. These rules are 
not intended to, and do not create, any separate or additional rights 
to notice or opportunity to challenge the amount or validity of debts 
that have already been reduced to judgment or are otherwise legally 
final and binding, such as debts arising from judgments or orders 
entered upon the consent or agreement of the debtor. (In addition, the 
FTC is updating 16 CFR 1.100 to substitute the ``Bureau of the Fiscal 
Service'' for the former name of that agency, the ``Financial 
Management Service.'') These rules do not require notice and public 
comment under the Administrative Procedure Act, because they are agency 
rules of practice and adopt applicable Government-wide regulations 
without material change. See 5 U.S.C. 553(b)(A) & (B). Similarly, the 
Commission also finds good cause to dispense with the 30-day delay in 
the effective date normally required by the Administrative Procedure 
Act. 5 U.S.C. 553(d). No hardship will be imposed on debtors by the 
rules' immediate implementation. Rather, the public will benefit 
because the rule revisions codify procedures governing the use of debt 
collection tools authorized by the FCCS and applicable Federal debt 
collection statutes.
    The rules have two parts. Under Subpart P, the Commission's 
administrative debt collection activities shall be conducted in 
accordance with applicable Government-wide debt collection regulations, 
including the Federal Claims Collection Standards (FCCS), 31 CFR parts 
900-904, jointly promulgated by the Departments of Justice and 
Treasury, and related Treasury debt collection regulations, 31 CFR part 
285, utilized when the Commission refers a debt to Treasury for 
collection, including the centralized offset of Federal payments by 
Treasury. Furthermore, consistent with 31 U.S.C. 3716(b)(1), Subpart P 
expressly adopts, without change, applicable FCCS provisions governing 
the use of administrative offset in Federal debt collection activities. 
Subpart Q applies to tax refund offsets, and sets forth the procedures 
that shall apply when the Commission refers a debt to Treasury for 
collection by such means, consistent with the Federal statutes 
governing administrative offset generally (31 U.S.C. 3716) and tax 
refund offset specifically (31 U.S.C. 3720A), and the corresponding 
provisions of the FCCS and Treasury part 285 regulations, supra.

List of Subjects in 16 CFR Part 1

    Administrative practice and procedure, Claims, Debts, Garnishment 
of wages, Hearing and appeal procedures, Pay administration, Salaries, 
Wages.

    For the reasons stated in the preamble, the Federal Trade 
Commission amends part 1, title 16, Code of Federal Regulations, as 
follows:

PART 1--GENERAL PROCEDURES

0
1. The authority citation for part 1 continues to read as follows:

    Authority: Sec. 6, 38 Stat. 721 (15 U.S.C. 46), unless otherwise 
noted.


Sec.  1.100  [Amended]

0
2. Amend Sec.  1.100 by removing from paragraph (a) the phrase 
``Financial Management Service'' and adding in its place the phrase 
``Bureau of the Fiscal Service''.


Sec.  1.102-1.109  [Added and Reserved]

0
3. In subpart O, add and reserve Sec. Sec.  1.102-1.109.

0
4. Add new subparts P and Q to read as follows:
Subpart P--Administrative Debt Collection, Including Administrative 
Offset
Sec.
1.110 Application of Government-wide administrative claims 
collections standards and adoption of administrative offset 
regulations.
1.111-1.119 [Reserved]
Subpart Q--Tax Refund Offset
1.120 Purpose.
1.121 Notification of intent to collect.
1.122 Commission action as a result of consideration of evidence 
submitted in response to the notice of intent.
1.123 Change in notification to Bureau of the Fiscal Service.
1.124 Interest, penalties, and costs.

Subpart P--Administrative Debt Collection, Including Administrative 
Offset

    Authority: 31 U.S.C. 3701 et seq.


Sec.  1.110  Application of Government-wide administrative claims 
collections standards and adoption of administrative offset 
regulations.

    (a) The Commission shall apply the Federal Claims Collection 
Standards (FCCS), 31 CFR parts 900-904, in the administrative 
collection, offset, compromise, suspension, termination, and referral 
of collection activity for civil claims for money, funds, or property, 
as defined by 31 U.S.C. 3701(b), unless specific Federal agency 
statutes or regulations apply to such activities or, as provided for by 
Title 11 of the United States Code, when the claims involve bankruptcy. 
The Commission shall also follow Department of Treasury regulations set 
forth at 31 CFR part 285, as applicable, for administrative debt 
collection, including centralized offset of federal payments to collect 
non-tax debts that may be owed to the Commission, 31 CFR 285.5. Nothing 
in this subpart shall be construed to supersede or require the 
Commission to provide additional notice or other procedures that may 
have already been provided or afforded to a debtor in the course of 
administrative or judicial litigation or otherwise.

[[Page 2743]]

    (b) For purposes of 31 U.S.C. 3716(b)(1), the Commission adopts 
without change the regulations on collection by administrative offset 
set forth at 31 CFR 901.3 and other relevant sections of the FCCS 
applicable to such offset.


Sec. Sec.  1.111-1.119   [Reserved]

Subpart Q--Tax Refund Offset

    Authority: 31 U.S.C. 3716 and 3720A, 31 CFR 285.2(c).


Sec.  1.120  Purpose.

    This subpart establishes procedures for the Commission's referral 
of past-due legally enforceable debts to the Department of the 
Treasury's Bureau of the Fiscal Service (Fiscal Service) for offset 
against the tax refund payments of the debtor, consistent with 
applicable Fiscal Service regulations and definitions set forth in 31 
CFR 285.2 and 285.5.


Sec.  1.121  Notification of intent to collect.

    (a) Notification before tax refund offset. Reduction of a tax 
refund payment will be made only after the Commission makes a 
determination that an amount is owed and past-due and gives or makes a 
reasonable attempt to give the debtor 60 days written notice of the 
intent to collect by tax refund offset.
    (b) Contents of notice. The Commission's notice of intent to 
collect by tax refund offset will state:
    (1) The amount of the debt;
    (2) That unless the debt is repaid within 60 days from the date of 
the notice, the Commission intends to collect the debt by requesting a 
reduction of any amounts payable to the debtor as a Federal tax refund 
payment by an amount equal to the amount of the debt and all 
accumulated interest and other charges;
    (3) That the debtor, within 60 days from the date of the notice, 
has an opportunity to make a written agreement to repay the amount of 
the debt, unless such opportunity has previously been provided;
    (4) A mailing address for forwarding any written correspondence and 
a contact name and a telephone number for any questions; and
    (5) That the debtor may present evidence to the Commission that all 
or part of the debt is not past due or legally enforceable by:
    (i) Sending a written request for a review of the evidence to the 
address provided in the notice;
    (ii) Stating in the request the amount disputed and the reasons why 
the debtor believes that the debt is not past due or is not legally 
enforceable; and
    (iii) Including in the request any documents that the debtor wishes 
to be considered or stating that the additional information will be 
submitted within the remainder of the 60-day period.
    (c) A debtor may dispute the existence or amount of the debt or the 
terms of repayment, except with respect to debts established by a 
judicial or administrative order. In those cases, the debtor may not 
dispute matters or issues already settled, litigated, or otherwise 
established by such order, including the amount of the debt or the 
debtor's liability for that debt, except to the extent that the debtor 
alleges that the amount of the debt does not reflect payments already 
made to repay the debt in whole or part.


Sec.  1.122  Commission action as a result of consideration of evidence 
submitted in response to the notice of intent.

    (a) Consideration of evidence. If, in response to the notice 
provided to the debtor under Sec.  1.121, the Commission is notified 
that the debtor will submit additional evidence, or the Commission 
receives additional evidence from the debtor within the prescribed 
time, tax refund offset will be stayed until the Commission can:
    (1) Consider the evidence presented by the debtor;
    (2) Determine whether all or a portion of the debt is still past 
due and legally enforceable; and
    (3) Notify the debtor of its determination, as set forth in 
paragraph (b) of this section.
    (b) Commission action on the debt. (1) If, after considering any 
additional evidence from the debtor, the Commission determines that the 
debt remains past-due and legally enforceable, the Commission will 
notify the debtor of its intent to refer the debt to the Fiscal Service 
for offset against the debtor's Federal tax refund payment, including 
whether the amount of the debt remains the same or is modified; or
    (2) If, after considering any additional evidence from the debtor, 
the Commission determines that no part of the debt remains past-due and 
legally enforceable, the Commission will so notify the debtor and will 
not refer the debt to the Fiscal Service for offset against the 
debtor's Federal tax refund payment.


Sec.  1.123  Change in notification to Bureau of the Fiscal Service.

    After the Commission sends the Fiscal Service notification of a 
debtor's liability for a debt, the Commission will promptly notify the 
Fiscal Service if the Commission:
    (a) Determines that there is a material error or other material 
change in the information contained in the notification, including in 
the amount of the debt, subject to any additional due process 
requirements, where applicable, under this subpart or the Federal 
Claims Collection Standards, if the amount of debt has increased;
    (b) Receives a payment or credits a payment to the account of the 
debtor named in the notification that reduces the amount of the debt 
referred to Fiscal Service for offset; or
    (c) Otherwise concludes that such notification is appropriate or 
necessary.


Sec.  1.124  Interest, penalties, and costs.

    To the extent permitted or required by 31 U.S.C. 3717 or other law, 
regulation, or order, all interest, penalties, and costs applicable to 
the debt or incurred in connection with its referral for collection by 
tax refund offset will be assessed on the debt and thus increase the 
amount of the offset.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2016-00313 Filed 1-15-16; 8:45 am]
 BILLING CODE 6750-01-P