BOP Program Statement 2013.04 § 3

A bill is considered delinquent when the debt has not been paid or resolved within 30 days of the

payment due date. All accounts are to be monitored to determine when a bill has become past

due. Once a bill has become delinquent, the following steps must be taken (for debts owed by

current Federal employees, refer to Sections 4.c. and 4.d.):

a. Debt originating office (i.e. Institution, Regional or Central Offices). As soon as the

account becomes delinquent, the debtor is to be notified by letter via certified mail, and if

possible by telephone. All personal contacts with the debtor; i.e., telephone calls, must be

documented in the account file and followed up by a letter that confirms the contact and any

agreements reached.

(1) Initial Contact. The initial contact with the debtor is to be made as soon as the debt

becomes delinquent, but not later than 45 days after the payment due date. The letter must

inform the debtor of the:

■ Status of the debt as overdue.

■ Amount owed.

■ Basis of indebtedness.

■ Debtor’s right to contest the debt.

■ Debt collection methods the BOP may use, including IRS offset (Central Office only) and

administrative offset.

■ BOP’s policy on assessing late charges and the appropriate rates and amounts (if applicable).

■ Date by which payment must be received to avoid further action.

The letter is to be signed by the Business Administrator.

(2) Additional Contact. If the debt is not recovered after the initial contact, a follow-up letter is

to be sent every 30 days for the next two months, but not later than 61 days and 91 days after the

original bill date. Each letter should become progressively stronger and firmer in tone. These

letters are signed by the Chief Executive Officer (CEO).

If the institution’s efforts to collect the debt fail and the debt is 105 days past the original bill

date, the institution shall request assistance from the Regional Comptroller. In this request, the

originating office shall include, at a minimum:

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■ A copy of the billing document.

■ Back-up support for the bill.

■ Copies of all follow-up documentation and correspondence.

b. Regional Office Oversight. The Regional Comptroller reviews the documentation

supporting the debt referred by the institution. If the Regional Comptroller concludes that the

institution made sufficient attempts to collect the debt, but the collection efforts failed, the

Regional Comptroller refers the debt to the Debt Management Officer in the Central Office for

appropriate action. At a minimum, the same documentation sent by the institution to the

Regional Office must be sent to the Debt Management Officer.

If, however, the Regional Comptroller concludes that the institution-level effort to collect the

debt was insufficient, he/she is to follow up for one to three consecutive months by letter via

certified mail and telephone. These letters require the Deputy Regional Director’s signature. If

these collection efforts fail, the Regional Comptroller must refer the debt to the Debt

Management Officer as indicated above.

Any debt referred to the Debt Management Officer by the Region that has incomplete

documentation or does not provide sufficient evidence that all measures available were taken to

collect the debt will be sent back to the Region for collection action to be initiated.

If the debt originated at the Regional Office, the Central Office Finance Branch will perform

these functions.

c. Central Office Oversight. The Debt Management Officer will recommend final disposition

of the debt. This includes deciding if the debt should be referred to the IRS Offset Program or if

a recommendation should be made to the Assistant Director for Administration to write off the

debt.

At each stage of debt collection, all contacts with the debtor and any actions taken on the debt

must be documented to ensure fair and proper debt servicing and improve the chances of

collecting delinquent accounts and effectively pursuing litigation.

If the debt originated at the Central Office, the Finance Branch will perform these functions.