---
kind: "range"
citation: "38 C.F.R. §§ 1.950–1.953"
title: "38"
from: "1.950"
to: "1.953"
count: 4
url: "https://uscodex.org/cfr/38/1.950..1.953"
---

# §1.950. Prompt referral.

- (a) VA shall promptly refer debts to Department of Justice (DOJ) for litigation where aggressive collection activity has been taken in accordance with [§§ 1.900 through 1.953](/cfr/38/1.900..1.953.md), and such debts cannot be compromised, or on which collection activity cannot be suspended or terminated, in accordance with [§§ 1.930 through 1.936](/cfr/38/1.930..1.936.md) and [§§ 1.940 through 1.944](/cfr/38/1.940..1.944.md). Debts for which the principal amount is over $1,000,000, or such other amount as the Attorney General may direct, exclusive of interest and other late payment charges, shall be referred to the Civil Division or other division responsible for litigating such debts at DOJ. Debts for which the principal amount is $1,000,000, or less, or such other amount as the Attorney General may direct, exclusive of interest or penalties, shall be referred to DOJ's Nationwide Central Intake Facility as required by the Claims Collection Litigation Report (CCLR) instructions. Debts should be referred as early as possible, consistent with aggressive agency collection activity and the observance of the standards contained in [§§ 1.900 through 1.953](/cfr/38/1.900..1.953.md), and, in any event, well within the period for initiating timely lawsuits against the debtors. VA shall make every effort to refer delinquent debts to DOJ for litigation within 1 year of the date such debts last became delinquent. In the case of guaranteed or insured loans, VA should make every effort to refer these delinquent debts to DOJ for litigation within 1 year from the date the loan was presented to VA for payment or reinsurance.
- (b) **DOJ has exclusive jurisdiction over the debts referred to it pursuant to this section.** VA shall immediately terminate the use of any administrative collection activities to collect a debt at the time of the referral of that debt to DOJ. VA should advise DOJ of the collection activities that have been utilized to date, and their result. VA shall refrain from having any contact with the debtor and shall direct all debtor inquiries concerning the debt to DOJ. VA shall immediately notify DOJ of any payments credited to the debtor's account after referral of a debt under this section. DOJ shall notify VA, in a timely manner, of any payments it receives from the debtor.

# §1.951. Claims Collection Litigation Report (CCLR).

- (a) Unless excepted by the Department of Justice (DOJ), VA shall complete the CCLR, accompanied by a signed Certificate of Indebtedness, to refer all administratively uncollectible claims to DOJ for litigation. VA shall complete all of the sections of the CCLR appropriate to each claim as required by the CCLR instructions and furnish such other information as may be required in specific cases.
- (b) VA shall indicate clearly on the CCLR the actions it wishes DOJ to take with respect to the referred claim.
- (c) VA shall also use the CCLR to refer claims to DOJ to obtain approval of any proposals to compromise the claims or to suspend or terminate agency collection activity.

# §1.952. Preservation of evidence.


VA must take care to preserve all files and records that may be needed by the Department of Justice (DOJ) to prove its claims in court. VA ordinarily should include certified copies of the documents that form the basis for the claim when referring such claims to DOJ for litigation. VA shall provide originals of such documents immediately upon request by DOJ.


# §1.953. Minimum amount of referrals to the Department of Justice.

- (a) Except as otherwise provided in paragraphs [(b)](#b) and [(c)](#c) of this section, VA shall not refer for litigation claims of less than $2,500, exclusive of interest, penalties, and administrative costs, or such other minimum amount as the Attorney General shall from time to time prescribe. The Department of Justice (DOJ) shall promptly notify referring agencies if the Attorney General changes this minimum amount.
- (b) VA shall not refer claims of less than the minimum amount prescribed by the Attorney General unless:
  - (1) Litigation to collect such smaller claims is important to ensure compliance with VA's policies or programs;
  - (2) The claim is being referred solely for the purpose of securing a judgment against the debtor, which will be filed as a lien against the debtor's property pursuant to [28 U.S.C. 3201](/usc/28/3201.md) and returned to VA for enforcement; or
  - (3) The debtor has the clear ability to pay the claim and the Government effectively can enforce payment, with due regard for the exemptions available to the debtor under State and Federal law and the judicial remedies available to the Government.
- (c) VA should consult with the Financial Litigation Staff of the Executive Office for United States Attorneys, in DOJ, prior to referring claims valued at less than the minimum amount.