Defense Debt Management System (February 19, 2009, 74 FR 7665)
Defense Finance and Accounting
8899 E. 56th Street, Indianapolis, IN 46249-2700.
CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
Individuals who are indebted to a
Department of Defense (DoD) agency that have transferred debts to the Defense
Debt Management System serviced by the Defense Finance and Accounting Service.
EXCLUSION: This system does not include individuals who are indebted to a DoD
agency and who have been identified as currently receiving pay from DoD.
CATEGORIES OF RECORDS IN THE SYSTEM:
Information varies depending on the
debtor and the related history of debt billing and follow-up collection
activity. These records may include name, Social Security Number, mailing
address, original debt principal and the delinquent amount, basis of the debt,
date debt arose, late payment charges, office referring the debt, collection
efforts, credit reports, collection letters, due process notice, and records of
e-mail, telephone, or written correspondence to or from the debtor relating to
Correspondence with other Federal
agencies to initiate the collection of debts through voluntary or involuntary
offset procedures against the indebted employees' salaries or compensation due
Correspondence with other Federal
agencies requesting administrative offset from payments owed to the debtor.
These records may include individual's name, rank, date of birth, Social
Security Number, debt amount, documentation establishing overpayment status,
military pay records, financial status affidavits, credit references, and
substantiating documents such as military pay orders, pay adjustment
authorizations, military master pay account printouts, records of travel
payments, financial record data folders, miscellaneous vouchers, debtor
financial records, credit reports, promissory notes, and debtor financial
Information on U.S. Treasury
Department, Internal Revenue Service (IRS), U.S. Department of Justice, and
U.S. General Accounting Office (GAO) inquiries, judicial proceedings regarding
bankruptcy, pay account histories, and token payment information.
Applications for waiver of
erroneous payment or for remission of indebtedness with supporting documents
including statements of financial status (personal income and expenses),
statements of commanders or Defense Accounting Officers, correspondence with
debtors, or records of overpayments of Survivor Benefit Plan benefits.
Reports from probate courts
regarding the estates of deceased debtors.
Reports from bankruptcy courts
regarding claims of the U.S. Government against debtors.
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
5 U.S.C. 301, Departmental
Regulations, 5512, 5513, 5514, and 5584; 10 U.S.C. 1442, 1453, 2774, 2775,
9835; 31 U.S.C. 3325, 3342, 3526, 3701, 3702, 3711, 3716-3718; 32 U.S.C. 710,
716; 37 U.S.C. 1007(c); 40 U.S.C. 721, 723, 725, 726, 727, 728, 729; the Debt
Collection Act of 1982 (Pub.L. 97-365, as amended by Pub.L. 104-134, the Debt
Collection Improvement Act of 1996); Pub.L. 89-508; E.O. 9397 (SSN); and DoD
7000.14-R, Department of Defense Financial Management Regulation, Volume 5,
To administratively manage the
collection of debts owed to the Department of Defense (DoD). These debts
include, but are not limited to, past due loan payments, overpayments, fines,
interest, penalties, administrative fees, and amounts derived from damages,
leases, and sales of real or personal property.
To implement the salary offset
provisions of 5 U.S.C. 5514, the administrative offset provisions of 31 U.S.C.
3711 and 3716-3718, and the provisions of the Federal Claims Collection
Standards (31 CFR parts 900-904), that apply to personal debts.
To permit collection of delinquent
claims and debts owed to the U.S. Government under any program or service
administered by any creditor DoD Component.
To determine the validity of
waivers or to make referrals to the Defense Office of Hearings and Appeals (DOHA).
To maintain records of
investigations conducted for the purpose of confirming, canceling, or
determining if the debts are accurate or valid, and whether the debt should be
remitted or waived.
All records in this system are
subject to use in authorized computer matching programs within DoD and with
other Federal agencies or non-Federal agencies as regulated by the Privacy Act
of 1974 (5 U.S.C. 552a), as amended.
ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND THE PURPOSES OF SUCH USES:
In addition to those disclosures
generally permitted under 5 U.S.C. 552a(b) of the Privacy Act, these records or
information contained therein may specifically be disclosed outside the DoD as
a routine use pursuant to 5 U.S.C. 552a(b)(3) as follows:
To the U.S. General Accounting
Office, the U.S. Department of the Justice, Internal Revenue Service, U.S.
Department of Treasury, or other Federal agencies for further collection action
on any delinquent account when circumstances warrant.
To commercial credit reporting
agencies for the purpose of adding debt payment or non-payment data to a credit
history file on an individual for use in the administration of debt collection.
Delinquent debt information may be furnished for the purpose of establishing an
inducement for debtors to pay their obligations to the U.S. Government.
To any Federal agency where the
debtor is employed or receiving some type of payment from that agency for the
purpose of collecting debts owed the U.S. Government by non-centralized offset.
Non-centralized offset encompasses an offset program administered by any
Federal agency other than the U.S. Department of Treasury. The agency holding
the payment subject to offset will use the indebtedness information for collection
purposes after counseling the debtor. The collection may be accomplished either
voluntarily or involuntarily by initiating administrative or salary offset
procedures under the provisions of the Debt Collection Act of 1982 (Pub.L.
97-365, as amended by Pub.L. 104-134, the Debt Collection Improvement Act of
To the U.S. Department of Treasury
(DOT) for centralized administrative or salary offset, including the offset of
Federal income tax refunds, for the purpose of collecting debts owed the U.S. Government;
to the DOT contracted private collection agencies for the purpose of obtaining
collection services, including administrative wage garnishment (AWG) in
accordance with the Debt Collection Improvement Act of 1996 (Pub.L. 104-134),
31 U.S.C. 3720D, and 31 CFR part 285, to recover moneys owed to the U.S.
To the U.S. Department of Veteran
Affairs for administration of laws pertaining to veterans' benefits.
To any Federal agency for the
purpose of accomplishing the administrative procedures to collect or dispose of
a debt owed to the U.S. Government. This includes, but is not limited to, the
Office of Personnel Management for personnel management functions and the
Internal Revenue Service to obtain a mailing address of a taxpayer for the purpose
of locating such taxpayer to collect or compromise a Federal claim against the
taxpayer pursuant to 26 U.S.C. 1603(m)(2), and in accordance with 31 U.S.C.
3711, 3217, and 3718. The Internal Revenue Service may also request locator
service for delinquent accounts receivable in order to report closed out
accounts as taxable income, including amounts compromised or terminated, and
accounts barred from litigation due to age.
To any Federal, state, or local
agency for the purpose of conducting an authorized computer-matching program to
identify and locate delinquent debtors for recoupment of debts owed DoD.
To publish or otherwise publicly
disseminate information regarding the identity of the debtor and the existence
of the non-tax debt, subject to review by the Secretary of the Treasury.
The DoD 'Blanket Routine Uses' published at the beginning of the DFAS
compilation of record system notices also apply to this system.
Disclosure to consumer reporting agencies:
Disclosures pursuant to 5 U.S.C.
552a(b)(12) may be made from this system to 'consumer reporting agencies' as
defined in the Fair Credit Reporting Act (15 U.S.C. 1681a(f)) or the Federal
Claims Collection Act of 1966 (31 U.S.C. 3701(a)(3)). The purpose of this
disclosure is to aid in the collection of outstanding debts owed to the Federal
government, typically to provide an incentive for debtors to repay delinquent
Federal government debts by making these debts part of their credit records.
The disclosure is limited to
information necessary to establish the identity of the individual, including
name, address, and taxpayer identification number (Social Security Number); the
amount, status, and history of the claim; and the agency or program under which
the claim arose for the sole purpose of allowing the consumer reporting agency
to prepare a commercial credit report.
POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, AND DISPOSING OF RECORDS IN THE SYSTEM:
Paper file folders and electronic
Retrieved by name, Taxpayer
Identification Number, other identification number or system identifier, or
name of accountable disbursing office in whose custody the public funds were
entrusted when the debt arose.
Records are maintained in a controlled facility.� Physical entry is restricted by the use of
locks, guards, and is accessible only to authorized personnel.� Access to records is limited to person(s)
responsible for servicing the record in performance of their official duties
and who are properly screened and cleared for need-to-know.� Access to computerized data is restricted by
passwords, which are changed periodically.
RETENTION AND DISPOSAL:
All cases will remain active until
settled by full payment, waiver, write-off, or close out. The system contains
records requiring a retention period of up to 10 years after final action.
Records are retired to National Records Centers. Destruction is accomplished by
tearing, shredding, pulping, macerating, or burning.
SYSTEM MANAGER(S) AND ADDRESS:
Chief, Debt Management Systems
Division, Directorate of Debt and Claims Management, Defense Finance and
Accounting Service, Indianapolis, 8899 E. 56th Street, Indianapolis, IN
Individuals seeking to determine
whether information about themselves is contained in this system should address
written inquiries to the Defense Finance and Accounting Service � Indianapolis,
DFAS-HAC/IN, 8899 E. 56th
Street, Indianapolis, IN 46249-0150.
The individuals should furnish
their name, Social Security Number, telephone number, and reasonably describe
the information they are seeking.
RECORD ACCESS PROCEDURES:
Individuals seeking access to
information about themselves contained in this system of records should address
written inquiries to the Defense Finance and Accounting Service � Indianapolis, DFAS-HAC/IN, 8899 E. 56th Street, Indianapolis,
The individuals should furnish
their name, Social Security Numbers, and reasonably describe the information
they are seeking.
CONTESTING RECORD PROCEDURES:
The DFAS rules
for accessing records, for contesting contents and appealing initial agency
determinations are published in DFAS Regulation 5400.11-R; 32 CFR part 324; or
may be obtained from the Freedom of Information/Privacy Act Program Manager, at
Corporate Communications and Legislative Liaison, 8899 E. 56th
Street, Indianapolis, IN 46249-0150.
RECORD SOURCE CATEGORIES:
Records are obtained from the
debtor, DFAS centers, other DoD organizations, and agencies of Federal state,
and local governments, as applicable or appropriate for processing the case.
EXEMPTIONS CLAIMED FOR THE SYSTEM:
FEDERAL REGISTER HISTORY: