§ 1639.6 Contracting for collection services.

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— (a) Retain sole authority to: (1) Resolve any dispute by the debtor regarding the validity of the debt; (2) Compromise the debt; (3) Suspend or terminate collection action; (4) Refer the debt to the Department of Justice for litigation; and (5) Take any other action under this part which does not result in full collection of the debt; (b) 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; (c) Require the contractor to account accurately and fully for all amounts collected; and (d) 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.