# 12 C.F.R. § 1073.306 (2026): Salary offset process > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/CFR_T12_P1073_S1073_306 ## Section - **Citation:** 12 C.F.R. § 1073.306 (2026) - **Heading:** Salary offset process - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Title 12 CFR: Banks and Banking / Chapter X: CONSUMER FINANCIAL PROTECTION BUREAU / Part 1073: PROCEDURES FOR BUREAU DEBT COLLECTION / Subpart C: Salary Offset / § 1073.306: § 1073.306 Salary offset process. ## Text (a) Method and source of deductions. Salary offsets under this subpart shall be deducted from current disposable pay, except as provided in paragraph (e) of this section. (b) Determination of disposable pay. The Bureau's Office of the Chief Financial Officer will consult with the Bureau's Office of Human Capital to determine the amount of a Bureau employee's disposable pay and will implement the salary offset. If the debtor is not employed by the Bureau, the agency employing the debtor will determine the amount of the employee's disposable pay and will implement the salary offset. (c) When salary offset may begin. Deductions shall begin within three official pay periods following, as applicable, the initiation of salary offset without a hearing under § 1073.304, the decision of the hearing official under § 1073.305, or receipt of the creditor agency's request for offset where the Bureau is not the creditor agency. (d) Amount of salary offset. The amount to be offset from each salary payment will be up to 15 percent of a debtor's disposable pay, as follows: (1) If the amount of the debt is equal to or less than 15 percent of the disposable pay, such debt generally will be collected in one lump sum payment; (2) If the employee is financially unable to pay in one lump sum or the amount of the debt exceeds 15 percent of disposable pay for an officially established pay interval, collection will be made in installments. Installment deductions will be made over a period of no greater than the anticipated period of employment, except as provided in paragraph (e) of this section. Installment deductions must ordinarily bear a reasonable relationship to the size of the debt and the employee's ability to pay. An installment deduction will not exceed 15 percent of the disposable pay from which the deduction is made unless the employee has agreed in writing to the deduction of a greater amount. The creditor agency may determine that smaller deductions are appropriate based on the employee's ability to pay. rdinarily bear a reasonable relationship to the size of the debt and the employee's ability to pay. An installment deduction will not exceed 15 percent of the disposable pay from which the deduction is made unless the employee has agreed in writing to the deduction of a greater amount. The creditor agency may determine that smaller deductions are appropriate based on the employee's ability to pay. (e) Final salary or other payment. After the employee has separated either voluntarily or involuntarily from the payment agency, the payment agency may, pursuant to 31 U.S.C. 3716, make a lump sum deduction exceeding 15 percent of disposable pay from any final salary or other payments in order to satisfy a debt. If the debt cannot be liquidated by offset from any final payment due the former employee as of the date of separation, it may be offset under 31 U.S.C. 3716 from later payments of any kind due the former employee from the United States, unless prohibited by law. ## Nearby sections - [12 C.F.R. § 1073.301 (2026) § 1073.301 Scope.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1073_S1073_301.md) - [12 C.F.R. § 1073.302 (2026) § 1073.302 Notice requirement where CFPB is creditor agency.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1073_S1073_302.md) - [12 C.F.R. § 1073.303 (2026) § 1073.303 Procedures to request a hearing.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1073_S1073_303.md) - [12 C.F.R. § 1073.304 (2026) § 1073.304 Failure to timely submit request for a hearing.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1073_S1073_304.md) - [12 C.F.R. § 1073.305 (2026) § 1073.305 Procedures for hearing.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1073_S1073_305.md) - [12 C.F.R. § 1073.306 (2026) § 1073.306 Salary offset process.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1073_S1073_306.md) - [12 C.F.R. § 1073.307 (2026) § 1073.307 Voluntary repayment agreements as alternative to salary offset where the CFPB is the creditor agency.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1073_S1073_307.md) - [12 C.F.R. § 1073.308 (2026) § 1073.308 Special review of repayment agreement or salary offset due to changed circumstances.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1073_S1073_308.md) - [12 C.F.R. § 1073.309 (2026) § 1073.309 Interest, penalties, and administrative costs.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1073_S1073_309.md) - [12 C.F.R. § 1073.310 (2026) § 1073.310 Refunds.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1073_S1073_310.md) - [12 C.F.R. § 1073.311 (2026) § 1073.311 Non-waiver of rights by payment.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1073_S1073_311.md) - [12 C.F.R. § 1073.312 (2026) § 1073.312 Exception to procedures.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1073_S1073_312.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T12_P1073_S1073_306. 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