Privacy Act of 1974, New System of Records

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.

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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