BOP Program Statement 8531.12 § 20

determining if the debt should be referred to Treasury for

collection or DOJ/FPI General Counsel for litigation. However,

the minimum amount for litigation is $2,500.

If the debt is transferred to Treasury manually, a complete

information package to include the debtors’ information must be

prepared and forwarded to the Chief, CAR for certification to

Treasury for debt servicing.

a. Certification of Debt. The Chief, CAR or designee must

sign a Certification - Debt Collection for each debt or group of

debts that is referred to Treasury for collection.

b. Transfer of Debt to Treasury. Once the debt has been

certified by the Chief, CAR or designee, the complete package to

include the Certification-Debt Collection and the Debt

Information Sheets must be forwarded to the U.S. Treasury,

Financial Management Service (FMS), Debt Management Service

(DMS). If the debt is being transmitted to FedDebt

electronically, CAR staff must submit an annual Certification

Form to Treasury.

c. Treasury Requests. The Chief, CAR or designee must respond

within five business days to DMS for any requests requesting

information relating to the approval or rejection of the debtor’s

compromise offer or installment payment plans.

In addition, any request from DMS on missing mandatory elements

or correct dollar amounts must be resolved by the Chief, CAR or

designee within 15 business days or the debt will be returned to

CAR.

d. Collection by Treasury. FPI must pay all fees related to a

debt’s collection as stated in the Letter of Agreement,

regardless whether the debt was paid to DMS or FPI. In addition,

all other charges associated with services rendered for

collecting the debt (i.e., private collection agencies) are

included in the amount DMS will attempt to collect from the

debtor.

All funds collected by DMS, less any fees and charges will be

transmitted to FPI’s Agency Location Code (ALC) for CAR via IPAC.

The Chief, CAR or designee must ensure the payment is applied to

the appropriate receivable (e.g. principal, interest, penalty,

administrative costs, etc.) and liquidated accordingly.

P8531.12

7/7/2006

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