---
kind: "range"
citation: "31 U.S.C. §§ 3716–3719"
title: "31"
from: "3716"
to: "3719"
count: 4
release: "119-102"
url: "https://uscodex.org/usc/31/3716..3719"
---

# §3716. Administrative offset

- (a) After trying to collect a [claim](/usc/31/3701.md?p=b-2) from a [person](/usc/31/3701.md?p=c) under [section 3711(a) of this title](/usc/31/3711.md?p=a), the head of an [executive, judicial, or legislative agency](/usc/31/3701.md?p=a-4) may collect the [claim](/usc/31/3701.md?p=b-2) by [administrative offset](/usc/31/3701.md?p=a-1). The head of the [agency](/usc/31/1352.md?p=g-2) may collect by [administrative offset](/usc/31/3701.md?p=a-1) only after giving the debtor—
  - (1) written notice of the type and amount of the [claim](/usc/31/3701.md?p=b-2), the intention of the head of the [agency](/usc/31/1352.md?p=g-2) to collect the [claim](/usc/31/3701.md?p=b-2) by [administrative offset](/usc/31/3701.md?p=a-1), and an explanation of the rights of the debtor under this section;
  - (2) an opportunity to inspect and copy the records of the [agency](/usc/31/1352.md?p=g-2) related to the [claim](/usc/31/3701.md?p=b-2);
  - (3) an opportunity for a review within the [agency](/usc/31/1352.md?p=g-2) of the decision of the [agency](/usc/31/1352.md?p=g-2) related to the [claim](/usc/31/3701.md?p=b-2); and
  - (4) an opportunity to make a written agreement with the head of the [agency](/usc/31/1352.md?p=g-2) to repay the amount of the [claim](/usc/31/3701.md?p=b-2).
- (b) Before collecting a [claim](/usc/31/3701.md?p=b-2) by [administrative offset](/usc/31/3701.md?p=a-1), the head of an [executive, judicial, or legislative agency](/usc/31/3701.md?p=a-4) must either—
  - (1) adopt, without change, regulations on collecting by [administrative offset](/usc/31/3701.md?p=a-1) promulgated by the Department of Justice, the Government Accountability Office, or the Department of the Treasury; or
  - (2) prescribe regulations on collecting by [administrative offset](/usc/31/3701.md?p=a-1) consistent with the regulations referred to in [paragraph (1)](#b-1).
- (c)
  - (1)
    - (A) Except as otherwise provided in this subsection, a disbursing official of the Department of the Treasury, the Department of Defense, the United States Postal Service, the Department of Health and Human Services, or any other government corporation, or any disbursing official of the United States designated by the Secretary of the Treasury, shall offset at least annually the amount of a payment which a [payment certifying agency](/usc/31/3701.md?p=e-2) has certified to the disbursing official for disbursement, by an amount equal to the amount of a [claim](/usc/31/3701.md?p=b-2) which a [creditor agency](/usc/31/3701.md?p=e-1) has certified to the Secretary of the Treasury pursuant to this subsection.
    - (B) An [agency](/usc/31/1352.md?p=g-2) that designates disbursing officials pursuant to [section 3321(c) of this title](/usc/31/3321.md?p=c) is not required to certify [claims](/usc/31/3701.md?p=b-2) arising out of its operations to the Secretary of the Treasury before such [agency](/usc/31/1352.md?p=g-2)’s disbursing officials offset such [claims](/usc/31/3701.md?p=b-2).
    - (C) Payments certified by the Department of Education under a program administered by the Secretary of Education under title IV of the Higher Education Act of 1965 shall not be subject to [administrative offset](/usc/31/3701.md?p=a-1) under this subsection.
  - (2) Neither the disbursing official nor the [payment certifying agency](/usc/31/3701.md?p=e-2) shall be liable—
    - (A) for the amount of the [administrative offset](/usc/31/3701.md?p=a-1) on the basis that the underlying [obligation](/usc/31/3801.md?p=a-11), represented by the payment before the [administrative offset](/usc/31/3701.md?p=a-1) was taken, was not satisfied; or
    - (B) for failure to provide timely notice under [paragraph (8)](#c-8).
  - (3)
    - (A)
      - (i) Notwithstanding any other provision of law (including sections 207 and 1631(d)(1) of the Social Security Act ([42 U.S.C. 407](/usc/42/407.md) and 1383(d)(1)), section 413(b) of Public Law 91–173 ([30 U.S.C. 923(b)](/usc/30/923.md?p=b)), and section 14 of the Act of August 29, 1935 ([45 U.S.C. 231m](/usc/45/231m.md))), except as provided in [clause (ii)](#c-3-A-ii), all payments due to an individual under—
        - (I) the Social Security Act,
        - (II) part B of the Black Lung Benefits Act, or
        - (III) any law administered by the Railroad Retirement Board (other than payments that such Board determines to be tier 2 benefits),

        shall be subject to offset under this section.

      - (ii) An amount of $9,000 which a debtor may receive under Federal benefit programs cited under [clause (i)](#c-3-A-i) within a 12-month period shall be exempt from offset under this subsection. In applying the $9,000 exemption, the disbursing official shall—
        - (I) reduce the $9,000 exemption amount for the 12-month period by the amount of all Federal benefit payments made during such 12-month period which are not subject to offset under this subsection; and
        - (II) apply a prorated amount of the exemption to each periodic benefit payment to be made to the debtor during the applicable 12-month period.

        For purposes of the preceding sentence, the amount of a periodic benefit payment shall be the amount after any reduction or deduction required under the laws authorizing the program under which such payment is authorized to be made (including any reduction or deduction to recover any overpayment under such program).

    - (B) The Secretary of the Treasury shall exempt from [administrative offset](/usc/31/3701.md?p=a-1) under this subsection payments under means-tested programs when requested by the head of the respective [agency](/usc/31/1352.md?p=g-2). The Secretary may exempt other payments from [administrative offset](/usc/31/3701.md?p=a-1) under this subsection upon the written request of the head of a [payment certifying agency](/usc/31/3701.md?p=e-2). A written request for exemption of other payments must provide justification for the exemption under standards prescribed by the Secretary. Such standards shall give due consideration to whether [administrative offset](/usc/31/3701.md?p=a-1) would tend to interfere substantially with or defeat the purposes of the [payment certifying agency](/usc/31/3701.md?p=e-2)’s program. The Secretary shall report to the Congress annually on exemptions granted under this section.
    - (C) The provisions of sections 205(b)(1), 809(a)(1), and 1631(c)(1) of the Social Security Act shall not apply to any [administrative offset](/usc/31/3701.md?p=a-1) executed pursuant to this section against benefits authorized by title II, VIII, or title XVI of the Social Security Act, respectively.
    - (D) This section shall apply to payments made after the date which is 90 days after the enactment of this subparagraph (or such earlier date as designated by the Secretary of Health and Human Services) with respect to [claims](/usc/31/3701.md?p=b-2) or [debts](/usc/31/3701.md?p=b-2), and to amounts payable, under title XVIII of the Social Security Act.
  - (4) The Secretary of the Treasury may charge a fee sufficient to cover the full cost of implementing this subsection. The fee may be collected either by the retention of a portion of amounts collected pursuant to this subsection, or by billing the [agency](/usc/31/1352.md?p=g-2) referring or transferring a [claim](/usc/31/3701.md?p=b-2) for those amounts. Fees charged to the [agencies](/usc/31/1352.md?p=g-2) shall be based on actual [administrative offsets](/usc/31/3701.md?p=a-1) completed. Amounts received by the United States as fees under this subsection shall be deposited into the account of the Department of the Treasury under [section 3711(g)(7) of this title](/usc/31/3711.md?p=g-7), and shall be collected and accounted for in accordance with the provisions of that section.
  - (5) The Secretary of the Treasury in consultation with the Commissioner of Social Security and the Director of the Office of Management and Budget, may prescribe such rules, regulations, and procedures as the Secretary of the Treasury considers necessary to carry out this subsection. The Secretary shall consult with the heads of affected [agencies](/usc/31/1352.md?p=g-2) in the development of such rules, regulations, and procedures.
  - (6)
    - (A) Any Federal [agency](/usc/31/1352.md?p=g-2) that is owed by a [person](/usc/31/3701.md?p=c) a past due, legally enforceable [nontax](/usc/31/3701.md?p=a-8) [debt](/usc/31/3701.md?p=b-2) that is over 120 days delinquent, including [nontax](/usc/31/3701.md?p=a-8) [debt](/usc/31/3701.md?p=b-2) administered by a third party acting as an agent for the Federal Government, shall notify the Secretary of the Treasury of all such [nontax](/usc/31/3701.md?p=a-8) [debts](/usc/31/3701.md?p=b-2) for purposes of [administrative offset](/usc/31/3701.md?p=a-1) under this subsection.
    - (B) The Secretary of the Treasury shall notify Congress of any instance in which an [agency](/usc/31/1352.md?p=g-2) fails to notify the Secretary as required under [subparagraph (A)](#c-6-A).
  - (7)
    - (A) The disbursing official conducting an [administrative offset](/usc/31/3701.md?p=a-1) with respect to a payment to a payee shall notify the payee in writing of—
      - (i) the occurrence of the [administrative offset](/usc/31/3701.md?p=a-1) to satisfy a past due legally enforceable [debt](/usc/31/3701.md?p=b-2), including a description of the type and amount of the payment otherwise payable to the payee against which the offset was executed;
      - (ii) the identity of the [creditor agency](/usc/31/3701.md?p=e-1) requesting the offset; and
      - (iii) a contact point within the [creditor agency](/usc/31/3701.md?p=e-1) that will handle concerns regarding the offset.
    - (B) If the payment to be offset is a periodic benefit payment, the disbursing official shall take reasonable steps, as determined by the Secretary of the Treasury, to provide the notice to the payee not later than the date on which the payee is otherwise scheduled to receive the payment, or as soon as practical thereafter, but no later than the date of the [administrative offset](/usc/31/3701.md?p=a-1). Notwithstanding the preceding sentence, the failure of the debtor to receive such notice shall not impair the legality of such [administrative offset](/usc/31/3701.md?p=a-1).
  - (8) A levy pursuant to the Internal Revenue Code of 1986 shall take precedence over requests for [administrative offset](/usc/31/3701.md?p=a-1) pursuant to other laws.
- (d) Nothing in this section is intended to prohibit the use of any other [administrative offset](/usc/31/3701.md?p=a-1) authority existing under statute or common law.
- (e)
  - (1) Notwithstanding any other provision of law, regulation, or administrative limitation, no limitation on the period within which an offset may be initiated or taken pursuant to this section shall be effective.
  - (2) This section does not apply when a statute explicitly prohibits using [administrative offset](/usc/31/3701.md?p=a-1) or setoff to collect the [claim](/usc/31/3701.md?p=b-2) or type of [claim](/usc/31/3701.md?p=b-2) involved.
- (f) The Secretary may waive the requirements of sections [552a(o)](/usc/5/552a.md?p=o) and [(p)](/usc/5/552a.md?p=p) of title 5 for [administrative offset](/usc/31/3701.md?p=a-1) or [claims](/usc/31/3701.md?p=b-2) collection upon written certification by the head of a State or an [executive, judicial, or legislative agency](/usc/31/3701.md?p=a-4) seeking to collect the [claim](/usc/31/3701.md?p=b-2) that the requirements of [subsection (a)](#a) of this section have been met.
- (g) The Data Integrity Board of the Department of the Treasury established under [552a(u)](/usc/5/552a.md?p=u) of title 5 shall review and include in reports under [paragraph (3)(D)](/usc/5/552a.md?p=u-3-D) of that section a description of any matching activities conducted under this section. If the Secretary has granted a waiver under [subsection (f)](#f) of this section, no other Data Integrity Board is required to take any action under [section 552a(u) of title 5](/usc/5/552a.md?p=u).
- (h)
  - (1) The Secretary may, in the discretion of the Secretary, apply [subsection (a)](#a) with respect to any past-due, legally-enforceable [debt](/usc/31/3701.md?p=b-2) owed to a State if—
    - (A) the appropriate State disbursing official requests that an offset be performed; and
    - (B) a reciprocal agreement with the State is in effect which contains, at a minimum—
      - (i) requirements substantially equivalent to [subsection (b)](#b) of this section; and
      - (ii) any other requirements which the Secretary considers appropriate to facilitate the offset and prevent duplicative efforts.
  - (2) This subsection does not apply to—
    - (A) the collection of a [debt](/usc/31/3701.md?p=b-2) or [claim](/usc/31/3701.md?p=b-2) on which the administrative costs associated with the collection of the [debt](/usc/31/3701.md?p=b-2) or [claim](/usc/31/3701.md?p=b-2) exceed the amount of the [debt](/usc/31/3701.md?p=b-2) or [claim](/usc/31/3701.md?p=b-2);
    - (B) any collection of any other type, class, or amount of [claim](/usc/31/3701.md?p=b-2), as the Secretary considers necessary to protect the interest of the United States; or
    - (C) the disbursement of any class or type of payment exempted by the Secretary of the Treasury at the request of a Federal [agency](/usc/31/1352.md?p=g-2).
  - (3) In applying this section with respect to any [debt](/usc/31/3701.md?p=b-2) owed to a State, [subsection (c)(3)(A)](#c-3-A) shall not apply.

# §3717. Interest and penalty on claims

- (a)
  - (1) The head of an [executive, judicial, or legislative agency](/usc/31/3701.md?p=a-4) shall charge a minimum annual rate of interest on an outstanding [debt](/usc/31/3701.md?p=b-2) on a United States Government [claim](/usc/31/3701.md?p=b-2) owed by a [person](/usc/31/3701.md?p=c) that is equal to the average investment rate for the Treasury tax and loan accounts for the 12-month period ending on September 30 of each year, rounded to the nearest whole percentage point. The Secretary of the Treasury shall publish the rate before November 1 of that year. The rate is effective on the first day of the next [calendar quarter](/usc/31/3701.md?p=a-2).
  - (2) The Secretary may change the rate of interest for a [calendar quarter](/usc/31/3701.md?p=a-2) if the average investment rate for the 12-month period ending at the close of the prior [calendar quarter](/usc/31/3701.md?p=a-2), rounded to the nearest whole percentage point, is more or less than the existing published rate by 2 percentage points.
- (b) Interest under [subsection (a)](#a) of this section accrues from the date—
  - (1) on which notice is mailed after October 25, 1982, if notice was first mailed before October 25, 1982; or
  - (2) notice of the amount due is first mailed to the debtor at the most current address of the debtor available to the head of the executive or[^1] legislative [agency](/usc/31/1352.md?p=g-2), if notice is first mailed after October 24, 1982.
- (c) The rate of interest charged under [subsection (a)](#a) of this section—
  - (1) is the rate in effect on the date from which interest begins to accrue under [subsection (b)](#b) of this section; and
  - (2) remains fixed at that rate for the duration of the indebtedness.
- (d) Interest under [subsection (a)](#a) of this section may not be charged if the amount due on the [claim](/usc/31/3701.md?p=b-2) is paid within 30 days after the date from which interest accrues under [subsection (b)](#b) of this section. The head of an [executive, judicial, or legislative agency](/usc/31/3701.md?p=a-4) may extend the 30-day period.
- (e) The head of an [executive, judicial, or legislative agency](/usc/31/3701.md?p=a-4) shall assess on a [claim](/usc/31/3701.md?p=b-2) owed by a [person](/usc/31/3701.md?p=c)—
  - (1) a charge to cover the cost of processing and handling a delinquent [claim](/usc/31/3701.md?p=b-2); and
  - (2) a penalty charge of not more than 6 percent a year for failure to pay a part of a [debt](/usc/31/3701.md?p=b-2) more than 90 days past due.
- (f) Interest under [subsection (a)](#a) of this section does not accrue on a charge assessed under [subsection (e)](#e) of this section.
- (g) This section does not apply—
  - (1) if a statute, regulation required by statute, loan agreement, or contract prohibits charging interest or assessing charges or explicitly fixes the interest or charges; and
  - (2) to a [claim](/usc/31/3701.md?p=b-2) under a contract executed before October 25, 1982, that is in effect on October 25, 1982.
- (h) In conformity with standards prescribed jointly by the Attorney General, the Secretary of the Treasury, and the Comptroller General, the head of an [executive, judicial, or legislative agency](/usc/31/3701.md?p=a-4) may prescribe regulations identifying circumstances appropriate to waiving collection of interest and charges under subsections [(a)](#a) and [(e)](#e) of this section. A waiver under the regulations is deemed to be compliance with this section.
- (i)
  - (1) The head of an [executive, judicial, or legislative agency](/usc/31/3701.md?p=a-4) may increase an [administrative claim](#i-2-B) by the [cost of living adjustment](#i-2-A) in lieu of charging interest and penalties under this section. Adjustments under this subsection will be computed annually.
  - (2) For the purpose of this subsection—
    - (A) the term “cost of living adjustment” means the percentage by which the Consumer Price Index for the month of June of the calendar year preceding the adjustment exceeds the Consumer Price Index for the month of June of the calendar year in which the [claim](/usc/31/3701.md?p=b-2) was determined or last adjusted; and
    - (B) the term “administrative claim” includes all [debt](/usc/31/3701.md?p=b-2) that is not based on an extension of Government credit through direct loans, loan guarantees, or insurance, including fines, penalties, and overpayments.

# §3718. Contracts for collection services

- (a) Under conditions the head of an [executive, judicial, or legislative agency](/usc/31/3701.md?p=a-4) considers appropriate, the head of the [agency](/usc/31/1352.md?p=g-2) may enter into a contract with a [person](/usc/31/3701.md?p=c) for collection service to recover indebtedness owed, or to locate or recover assets of, the United States Government. The head of an [agency](/usc/31/1352.md?p=g-2) may not enter into a contract under the preceding sentence to locate or recover assets of the United States held by a State government or [financial institution](/usc/31/310.md?p=k-3) unless that [agency](/usc/31/1352.md?p=g-2) has established procedures approved by the Secretary of the Treasury to identify and recover such assets. The contract shall provide that—
  - (1) the head of the [agency](/usc/31/1352.md?p=g-2) retains the authority to resolve a dispute, compromise a [claim](/usc/31/3701.md?p=b-2), end collection action, and refer a matter to the Attorney General to bring a civil action; and
  - (2) the [person](/usc/31/3701.md?p=c) is subject to—
    - (A) [section 552a of title 5](/usc/5/552a.md), to the extent provided in [section 552a(m)](/usc/5/552a.md?p=m); and
    - (B) laws and regulations of the United States Government and State governments related to [debt](/usc/31/3701.md?p=b-2) collection practices.
- (b)
  - (1)
    - (A) The Attorney General may make contracts retaining private counsel to furnish legal services, including representation in negotiation, compromise, settlement, and litigation, in the case of any [claim](/usc/31/3701.md?p=b-2) of indebtedness owed the United States. Each such contract shall include such terms and conditions as the Attorney General considers necessary and appropriate, including a provision specifying the amount of the fee to be paid to the private counsel under such contract or the method for calculating that fee. The amount of the fee payable for legal services furnished under any such contract may not exceed the fee that counsel engaged in the private practice of law in the area or areas where the legal services are furnished typically charge clients for furnishing legal services in the collection of [claims](/usc/31/3701.md?p=b-2) of indebtedness, as determined by the Attorney General, considering the amount, age, and nature of the indebtedness and whether the debtor is an individual or a business entity. Nothing in this subparagraph shall relieve the Attorney General of the competition requirements set forth in division C (except sections [3302](/usc/31/3302.md), [3501(b)](/usc/31/3501.md), 3509, [3906](/usc/31/3906.md), 4710, and 4711) of subtitle I of [title 41](/usc/41.md).
    - (B) The Attorney General shall use his best efforts to enter into contracts under this paragraph with law firms owned and controlled by socially and economically disadvantaged individuals and law firms that are qualified HUBZone small business concerns (as defined in section 31(b) of the Small Business Act), so as to enable each [agency](/usc/31/1352.md?p=g-2) to comply with [paragraph (3)](#b-3).
  - (2) The head of an [executive, judicial, or legislative agency](/usc/31/3701.md?p=a-4) may, subject to the approval of the Attorney General, refer to a private counsel retained under paragraph (1) of this subsection [claims](/usc/31/3701.md?p=b-2) of indebtedness owed the United States arising out of activities of that [agency](/usc/31/1352.md?p=g-2).
  - (3) Each [agency](/usc/31/1352.md?p=g-2) shall use its best efforts to assure that not less than 10 percent of the amounts of all [claims](/usc/31/3701.md?p=b-2) referred to private counsel by that [agency](/usc/31/1352.md?p=g-2) under [paragraph (2)](#b-2) are referred to law firms owned and controlled by socially and economically disadvantaged individuals and law firms that are [qualified HUBZone small business concerns](#b-3-C). For purposes of this paragraph—
    - (A) the term “law firm owned and controlled by socially and economically disadvantaged individuals” means a law firm that meets the requirements set forth in clauses (i) and (ii) of section 8(d)(3)(C) of the Small Business Act ([15 U.S.C. 637(d)(3)(C)(i)](/usc/15/637.md?p=d-3-C-i) and (ii)) and regulations issued under those clauses;
    - (B) “socially and economically disadvantaged individuals” shall be presumed to include these[^1] groups and individuals described in the last paragraph of section 8(d)(3)(C) of the Small Business Act; and
    - (C) the term “qualified HUBZone small business concern” has the meaning given that term in section 31(b) of the Small Business Act.
  - (4) Notwithstanding sections [516](/usc/28/516.md), [518(b)](/usc/28/518.md?p=b), [519](/usc/28/519.md), and [547(2)](/usc/28/547.md?p=2) of title 28, a private counsel retained under paragraph (1) of this subsection may represent the United States in litigation in connection with legal services furnished pursuant to the contract entered into with that counsel under paragraph (1) of this subsection.
  - (5) A contract made with a private counsel under paragraph (1) of this subsection shall include—
    - (A) a provision permitting the Attorney General to terminate either the contract or the private counsel’s representation of the United States in particular cases if the Attorney General finds that such action is for the convenience of the Government;
    - (B) a provision stating that the head of the executive or[^2] legislative [agency](/usc/31/1352.md?p=g-2) which refers a [claim](/usc/31/3701.md?p=b-2) under the contract retains the authority to resolve a dispute regarding the [claim](/usc/31/3701.md?p=b-2), to compromise the [claim](/usc/31/3701.md?p=b-2), or to terminate a collection action on the [claim](/usc/31/3701.md?p=b-2); and
    - (C) a provision requiring the private counsel to transmit monthly to the Attorney General and the head of the executive or[^2] legislative [agency](/usc/31/1352.md?p=g-2) referring a [claim](/usc/31/3701.md?p=b-2) under the contract a report on the services relating to the [claim](/usc/31/3701.md?p=b-2) rendered under the contract during the month and the progress made during the month in collecting the [claim](/usc/31/3701.md?p=b-2) under the contract.
  - (6) Notwithstanding the fourth sentence of section 803(6) of the Fair [Debt](/usc/31/3701.md?p=b-2) Collection Practices Act ([15 U.S.C. 1692a(6)](/usc/15/1692a.md?p=6)), a private counsel performing legal services pursuant to a contract made under paragraph (1) of this subsection shall be considered to be a [debt](/usc/31/3701.md?p=b-2) collector for the purposes of such Act.
  - (7) Any counterclaim filed in any action to recover indebtedness owed the United States which is brought on behalf of the United States by private counsel retained under this subsection may not be asserted unless the counterclaim is served directly on the Attorney General or the United States Attorney for the judicial district in which, or embracing the place in which, the action is brought. Such service shall be made in accordance with the rules of procedure of the court in which the action is brought.
- (c) The Attorney General shall transmit to the Congress an annual report on the activities of the Department of Justice to recover indebtedness owed the United States which was referred to the Department of Justice for collection. Each such report shall include a list, by [agency](/usc/31/1352.md?p=g-2), of—
  - (1) the total number and amounts of [claims](/usc/31/3701.md?p=b-2) which were referred for legal services to the Department of Justice and to private counsel under [subsection (b)](#b) during the 1-year period covered by the report;
  - (2) the total number and amount of those [claims](/usc/31/3701.md?p=b-2) referred for legal services to the Department of Justice which were collected or were not collected or otherwise resolved during the 1-year period covered by the report; and
  - (3) the total number and amount of those [claims](/usc/31/3701.md?p=b-2) referred for legal services to private counsel under [subsection (b)](#b)—
    - (A) which were collected or were not collected or otherwise resolved during the 1-year period covered by the report;
    - (B) which were not collected or otherwise resolved under a contract terminated by the Attorney General during the 1-year period covered by the report; and
    - (C) on which the Attorney General terminated the private counsel’s representation during the 1-year period covered by the report without terminating the contract with the private counsel under which the [claims](/usc/31/3701.md?p=b-2) were referred.
- (d) Notwithstanding [section 3302(b) of this title](/usc/31/3302.md?p=b), a contract under subsection [(a)](#a) or [(b)](#b) of this section may provide that a fee a [person](/usc/31/3701.md?p=c) charges to recover indebtedness owed, or to locate or recover assets of, the United States Government is payable from the amount recovered.
- (e) A contract under subsection [(a)](#a) or [(b)](#b) of this section is effective only to the extent and in the amount provided in an appropriation law. This limitation does not apply in the case of a contract that authorizes a [person](/usc/31/3701.md?p=c) to collect a fee as provided in [subsection (d)](#d) of this section.
- (f) This section does not apply to the collection of [debts](/usc/31/3701.md?p=b-2) under the Internal Revenue Code of 1986 ([26 U.S.C. 1](/usc/26/1.md) et seq.).
- (g) In order to assist Congress in determining whether use of private counsel is a cost-effective method of collecting Government [debts](/usc/31/3701.md?p=b-2), the Attorney General shall, following consultation with the Government Accountability Office, maintain and make available to the Inspector General of the Department of Justice, statistical data relating to the comparative costs of [debt](/usc/31/3701.md?p=b-2) collection by participating United States Attorneys’ Offices and by private counsel.

# §3719. Reports on debt collection activities

- (a) In consultation with the Comptroller General of the United States, the Secretary of the Treasury shall prescribe regulations requiring the head of each [agency](/usc/31/1352.md?p=g-2) with outstanding [nontax](/usc/31/3701.md?p=a-8) [claims](/usc/31/3701.md?p=b-2) to prepare and submit to the Secretary at least once each year a report summarizing the status of loans and accounts receivable that are managed by the head of the [agency](/usc/31/1352.md?p=g-2). The report shall contain—
  - (1) information on—
    - (A) the total amount of loans and accounts receivable owed the [agency](/usc/31/1352.md?p=g-2) and when amounts owed the [agency](/usc/31/1352.md?p=g-2) are due to be repaid;
    - (B) the total amount of receivables and number of [claims](/usc/31/3701.md?p=b-2) at least 30 days past due;
    - (C) the total amount written off as actually uncollectible and the total amount allowed for uncollectible loans and accounts receivable;
    - (D) the rate of interest charged for overdue [debts](/usc/31/3701.md?p=b-2) and the amount of interest charged and collected on [debts](/usc/31/3701.md?p=b-2);
    - (E) the total number of [claims](/usc/31/3701.md?p=b-2) and the total amount collected; and
    - (F) the number and total amount of [claims](/usc/31/3701.md?p=b-2) referred to the Attorney General for settlement and the number and total amount of [claims](/usc/31/3701.md?p=b-2) the Attorney General settles;
  - (2) the information described in clause (1) of this subsection for each program or activity the head of the [agency](/usc/31/1352.md?p=g-2) carries out; and
  - (3) other information the Secretary considers necessary to decide whether the head of the [agency](/usc/31/1352.md?p=g-2) is acting aggressively to collect the [claims](/usc/31/3701.md?p=b-2) of the [agency](/usc/31/1352.md?p=g-2).
- (b) The Secretary shall analyze the reports submitted under [subsection (a)](#a) of this section and shall report annually to Congress on the management of [debt](/usc/31/3701.md?p=b-2) collection activities by the head of each [agency](/usc/31/1352.md?p=g-2), including the information provided the Secretary under [subsection (a)](#a).