TABLE OF CONTENTS

CHAPTER 1. OVERVIEW

1.1 What is the Purpose and Scope of the Credit and Debt Management

Handbook?


1.2 What Type of Debts/Claims are not Covered in this Handbook?


1.3 What Other Documentation does this Handbook Reference?


1.4 Who Will Modify and Interpret the Handbook?
1.5 What is the Effective Date of this Handbook?

1.6 Where Can I Direct Questions and Comments?


CHAPTER 2. RESPONSIBILITIES AND CENTRAL AGENCY POLICY

2.1 What are the Responsibilities for Credit and Debt Management?
2.2 What are the Central Agency Policies for Credit and Debt Management?

CHAPTER 3. DELINQUENCY FOLLOWUP

3.1 What is the Purpose of this Chapter?
3.2 What are key Debt Collection Regulations?
3.3 What are Delinquencies?
3.4 What are the Due Process Procedures?
3.5 What are the Tools for Collecting Delinquent Debt?

3.5.1 What is the Collection Strategy/Action Plan?

3.5.2 What are the Collection Tools for Debts less than 180 Days?


3.5.3 What are Bureau Workout Groups/Follow-up?

3.6 What Procedures Does Treasury Follow to Collect Delinquent Debts?

3.7 What are the Requirements for Credit Bureau Reporting?

3.8 What is the Credit Alert Interactive Voice Response System (CAIVRS)?
3.9 How do Bureaus/Offices Calculate Interest, Penalty, Administrative Costs and

Allowance for Doubtful Accounts?

3.10 What Documentation is Required for Administrative Collection Action

is Required?

3.11 What Reports are Required?
Exhibit 3-1- Demand Letter Example
Exhibit 3-2 – Certification of Financial Position
Exhibit 3-3 – Authorization Agreement for Preauthorized Payments U. S. DOI

– Privacy Act Statement

Exhibit 3-4 – Format for Promissory Note Containing Agreement for Judgment
Exhibit 3-5 – Installment Agreement Worksheet Example

CHAPTER 4. DIRECT AND GUARANTEED LOANS

4.1 What is the Definition of a Direct and Guaranteed Loan?
4.2 What is the Preferred Form of Loan Assistance?
4.3 What are the Financial Standards for Federal Credit Programs?
4.4 What is the Bureau/Office Responsibility?
4.5 What are the Loan Officer Duties?
4.6 What are the Office of Management and Budget (OMB) and Treasury Policies

for Credit Extension?

4.7 What Are the Guidelines for Account Servicing and Loan Collections?
4.8 What Documentation is Required in the Loan File?
4.9 Who is Responsible for Changes to Loan Agreements?
4.10 How are Defaulted Loans Managed?
4.11 What Management Review Is Required?
4.12 What Accounting and Reporting Is Required?
Exhibit 4-1 – Applicant Certification Federal Collection Policies for Consumer Debts
Exhibit 4-2 – Applicant Certification Federal Collection Policies for

Commercial Applicants


CHAPTER 5. WRITE-OFF AND CLOSE-OUT OF DEBT

5.1 What does this Chapter Include?
5.2 How Do Bureaus/Offices Determine the Cost-Effectiveness of

Collection Procedures?

5.3 What are the Dollar Thresholds for Suspending or Terminating

Collection Action?

5.4 When is Collection Activity Suspended?
5.5 When is Collection Activity Terminated?
5.6 When are Claims Referred?
5.7 What is Write-Off and Closeout?

CHAPTER 6. CREDIT MANAGEMENT AND DEBT COLLECTION PLAN AND ANNUAL BUDGET SUBMISSION

6.1 What is the Background for the Credit Management and Debt Collection Plan

and Annual Budget Submission?

6.2 What Does the Credit Management and Debt Plan Include?
6.3 What Other Information Is Required?
6.4 Where are the Plan(s) Submitted?

GLOSSARY OF CREDIT AND DEBT TERMS