The Board’s Procedures for Debt Collection (12 CFR 267)
were issued to provide for the collection of debts owing to the United
States arising out of the Board’s operations or its enforcement and
other regulatory activities. The regulations describe procedures with
respect to referral of debts to Treasury or another agency for collection
by administrative offset or other means, collection by administrative
wage garnishment or salary offset, and the assessment of interest
and other charges on debts.
Part 267 establishes procedures for collection
of debts owed to the United States. It does not apply if another statute
or regulation, or a rule, regulation, or policy adopted by the Board
under authority granted to it by the Federal Reserve Act, governs
or prohibits collection. For example, the Board has a debt collection
policy that provides separate procedures for collecting debts from
current employees. These regulations do not apply to the collection
of any debts that the Board chooses to collect solely under its debt
collection policy rather than these regulations. Thus, the Board is
not creating any right to individuals to use the process offered under
this regulation for any debt the Board chooses to collect solely under
its debt collection policy. In collecting debts under this part, the
Board will also follow the procedures set forth in 5 CFR 550, subpart
K; 31 CFR 285; and the Federal Claims Collection Standards (FCCS),
31 CFR 900-904.
The definitions in section 267.2 are generally based on the FCCS,
the Debt Collection Improvement Act of 1996 (DCIA), and related authorities.
For purposes of this part, a debt or claim owed to the United States
is defined as including a debt owed to the Board, including a debt
or claim for repayment of Board-funded benefits administered through
the Office of Employee Benefits of the Federal Reserve System, but
does not include any debt the Board chooses to collect solely under
its debt collection policy.
Section 267.3 indicates which debts may be referred to
the U.S. Department of the Treasury for collection, including by centralized
offset and offset of tax refunds, and adopts procedural protections
provided under the FCCS and DCIA prior to such referrals. The Board
is not required to duplicate any prior notice or review opportunities
already afforded to the debtor prior to referral. The Board may request
that an agency other than the U.S. Department of the Treasury conduct
non-centralized offset.
Section 267.4 provides that the Board may collect debts
from the wages of persons employed outside of the federal government
through administrative wage garnishment. Before doing so, the debtor
will be provided an opportunity for a hearing in accordance with the
procedures described at 31 CFR 285.11(f).
Section 267.5 provides that the Board may collect
debts from the wages of a person employed at a federal agency (other
than the Board) through offset of the person’s federal agency salary.
It adopts the basic requirements set forth under 5 CFR 550.1104 for
the content of agency regulations governing salary offset. It also
establishes detailed procedures for a hearing prior to salary offset.
Section 267.6 follows
the guidelines in the FCCS for charges on delinquent debts and, as
required by the FCCS, clarifies when the Board will waive such charges
during the pendency of any review.
