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Important Legal Information & Federal Agencies Involved in an SBA or DOT Debt Case

We provide complimentary Case Evaluations for SBA and/or DOT federal debtors all over the United States having problems with “past-due” federal debt.   In many of our Case Evaluations, we are always asked to explain the process of our services and how we may be able to help them with their SBA or DOT collection problems.

Many SBA and DOT debtors do not understand that, according to the Federal Government, they OWE them the money – no questions asked.  From there, the Federal Government initiates their collection, collateral litigation and liquidation process by leveraging not only the federal administrative legal process, but also the referral protocols to the United States Department of Justice, where necessary.

Below is a summary description of the laws, regulations and key players (including their duties and responsibilities) involved in an SBA and/or DOT federal debt case matter.  So, if you think that you are capable of a “do it yourself” (DIY) strategy, or you are considering hiring a “non-attorney” firm or federal debt resolution company, you may want to think twice about your impending decision and consider reviewing these materials below.

Key Related Legislation, Regulations and Guidance

•           Federal Claims Collection Act of 1966 (FCCA) which authorized agencies to collect delinquent debt;

•           Debt Collection Act of 1982 (DCA) which expanded the Federal Government’s right to use debt collection tools such as offset, credit bureau reporting and private debt collection agencies;

•           Deficit Reduction Act of 1984 which added tax refund offset as a debt collection tool;

•           Chief Financial Officers Act of 1990 (CFO Act) which instituted effective financial management practices for the Federal Government and provided for the improvement of the Government’s financial management, accounting, and internal control systems;

•           Federal Credit Reform Act of 1990 which required agencies to estimate a credit program’s subsidy cost for direct and guaranteed loans for inclusion in budget outlays;

•           Federal Debt Collection Procedures Act of 1990 (FDCPA) which established a uniform process through the court system for collecting debts owed the Federal Government and provides for uniform procedures for enforcing judgments to collect Federal debts;

•           Administrative Dispute Resolution Act of 1990 (ADRA) which temporarily raised the authority of agencies to compromise, suspend, and terminate collection action to $100,000 and gives the Attorney General the authority to increase this threshold administratively. This authority was made permanent by the Debt Collection Improvement Act of 1996;

•           Cash Management Improvement Act Amendments of 1992 (CMIAA) which expanded the use of tax refund offset;

•           Omnibus Budget Reconciliation Act of 1993 (OMBRA),as amended, which mandated that agencies, including the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration, report discharged debts to the Internal Revenue Service as income to the debtors;

•           Department of Justice 1994 Appropriation Act which authorized the Department of Justice to charge a 3% administrative fee on amounts collected;

•           Debt Collection Improvement Act of 1996 (DCIA) which centralized offset and other administrative debt collection procedures at the Treasury; bars delinquent debtors from obtaining Federal loans, loan insurance or loan guarantees; mandates credit bureau reporting; and authorizes administrative wage garnishment;

•           General Accounting Office Act of 1996 which transferred from the General Accounting Office to Treasury certain authorities, including the authority to promulgate the Federal Claims Collections Standards with the Department of Justice;

•           Federal Claims Collections Standards (FCCS) (revised November 22, 2000) which clarified and simplified Federal debt collection procedures and reflects changes under the DCIA and the General Accounting Office Act of 1996;

•           Treasury Regulations which establish rules for certain debt collection tools such as centralized administrative offset, cross-servicing and administrative wage garnishment, as well as standards for barring delinquent debtors;

•           Office of Personnel Management Salary Offset Regulations which established rules and process for offsetting the salaries of federal employees to collect delinquent nontax debt; and

•           OMB Circular No. A-129 “Policies for Federal Credit Programs and Non-Tax Receivables” which established policies and procedures for justifying, designing and managing Federal credit programs and for collecting outstanding receivables.

Responsibilities of Departments and Agencies

The successful implementation of a government-wide credit management/debt collection program depends upon the active participation and support of several key agencies:

Office of Management and Budget (OMB)

•           reviews legislation to establish new credit programs ormodify existing credit programs;

•           monitors agency conformance with the Federal CreditReform Act;

•           formulates and reviews agency credit reporting standards and requirements;

•           reviews testimony pertaining to credit programs and debt collection activities;

•           reviews agency budget submissions for credit programs and debt collection activities;

•           develops and maintains the Federal credit subsidy calculator used to calculate the cost of credit programs;

•           formulates and reviews credit management and debt collection policy;

•           approves agency credit management and debt collection plans;

•           provides training to credit agencies;

•           chairs the Federal Credit Policy Working Group (FCPWG) which provides advice and assistance to agencies in the formulation and implementation of credit/debt policy governmentwide;

•           resolves inter-agency issues;

•           sets credit management and debt collection program

priorities; and

•           approves the asset management portions of the Chief Financial Officer Status Report and Five-Year Plans.

Department of the Treasury’s Financial Management Service

•           serves as part of the FCPWG;

•           develops and publishes, with the Department of Justice, the FCCS;

•           works with OMB to develop Federal credit policies and/or review legislation to create new credit programs or to expand or modify existing programs;

•           promulgates government-wide debt collection regulations implementing the debt collection provisions of the DCIA and other debt collection laws;

•           provides collection services for delinquent non-tax Federal debts (referred to as “cross-servicing”), and maintains a private collection contract for referral and collection of delinquent debts;

•           maintains a government-wide delinquent debtor database and conducts offsets of Federal payments, including tax refunds, under the Treasury Offset Program;

•           works with Federal program agencies to identify debt that is eligible for mandatory and voluntary referral to Treasury for cross-servicing and offset, and to establish target dates for referral;

•           issues operational and procedural guidelines regarding government wide credit management and debt collection;

•           assists in improving credit and debt management activities government-wide;

•           tracks Federal Government receivables through the Treasury Report on Receivables and agency implementation of credit and debt management initiatives;

•           develops guidelines and procedures on credit accounting and management information;

•           provides operational assistance and consulting services to agencies;

•           provides training on credit management and debt collection related topics nationwide; and

•           reports to Congress on government-wide debt collection activities.

Department of Justice

•           litigates on behalf of the Federal Government;

•           approves compromises and terminations of collection action for debts over $100,000;

•           develops and publishes, with Treasury, the FCCS;

•           manages the Nationwide Central Intake Facility (NCIF) to track and monitor agency referrals to the Department of Justice;

•           works with the program agencies to facilitate referrals to the Department of Justice and resolve problems; and

•           administers private counsel and special assistant U.S. attorney programs to collect Federal Government debt.

If you are struggling with circumstances that involve SBA loan default or a DOT collection action, you deserve professional help! Our attorneys know how to handle SBA OIC and/or DOT collection cases. If you contact us, we can help you settle SBA debt or your DOT collection problem once and for all. After you schedule an appointment, you confer with a dedicated SBA OIC attorney and Federally Authorized DOT Practitioner who can help you through your administrative legal battle. After your claim is resolved, you never again have to worry about your SBA loan default problem or DOT collection problem haunting you. Our team of lawyers has assisted many clients through the years. Now it is your turn! You truly can settle SBA debt for good!

Please contact us at 1-888-756-9969 to discuss the next steps in resolving your issues.  If you do not get in direct contact with us immediately, please leave a message with the front office staff with the best day, time and phone number to call you back and we will follow through on that promise.

 

We are here to help you with your SBA loan problems.

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