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§ 1639.6 - Contracting for collection services.

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The Board will use the services of a private collection contractor where it determines that such use is in the best interest of the Board. When the Board determines that there is a need to contract for collection services, it will—

Retain sole authority to:

Resolve any dispute by the debtor regarding the validity of the debt;

Compromise the debt;

Suspend or terminate collection action;

Refer the debt to the Department of Justice for litigation; and

Take any other action under this part which does not result in full collection of the debt;

Require the contractor to comply with the Privacy Act of 1974, as amended, to the extent specified in 5 U.S.C. 552a(m), with applicable Federal and State laws pertaining to debt collection practices (e.g., the Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.)), and with applicable regulations of the Board;

Require the contractor to account accurately and fully for all amounts collected; and

Require the contractor to provide to the Board, upon request, all data and reports contained in its files relating to its collection actions on a debt.

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§ 1639.5 - Use of credit reporting agencies.
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§ 1639.7 - Initial notice to debtor.