§3711. Collection and compromise

(a) The head of an executive or legislative agency-

(1) shall try to collect a claim of the United States Government for money or property arising out of the activities of, or referred to, the agency;

(2) may compromise a claim of the Government of not more than $100,000 (excluding interest) or such higher amount as the Attorney General may from time to time prescribe that has not been referred to another executive or legislative agency for further collection action; and

(3) may suspend or end collection action on a claim referred to in clause (2) of this subsection when it appears that no person liable on the claim has the present or prospective ability to pay a significant amount of the claim or the cost of collecting the claim is likely to be more than the amount recovered.

(b) The Comptroller General has the same authority that the head of the agency has under subsection (a) of this section when the claim is referred to the Comptroller General for further collection action. Only the Comptroller General may compromise a claim arising out of an exception the Comptroller General makes in the account of an accountable official.

(c)(1) The head of an executive or legislative agency may not act under subsection (a)(2) or (3) of this section on a claim that appears to be fraudulent, false, or misrepresented by a party with an interest in the claim, or that is based on conduct in violation of the antitrust laws.

(2) The Secretary of Transportation may not compromise for less than $500 a penalty under section 21302 of title 49 for a violation of chapter 203, 205, or 207 of title 49 or a regulation or requirement prescribed or order issued under any of those chapters.

(d) A compromise under this section is final and conclusive unless gotten by fraud, misrepresentation, presenting a false claim, or mutual mistake of fact. An accountable official is not liable for an amount paid or for the value of property lost or damaged if the amount or value is not recovered because of a compromise under this section.

(e) The head of an executive or legislative agency acts under-

(1) regulations prescribed by the head of the agency; and

(2) standards that the Attorney General and the Comptroller General may prescribe jointly.

(f)(1) When trying to collect a claim of the Government under a law except the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.), the head of an executive or legislative agency may disclose to a consumer reporting agency information from a system of records that an individual is responsible for a claim if-

(A) notice required by section 552a(e)(4) of title 5 indicates that information in the system may be disclosed to a consumer reporting agency;

(B) the head of the agency has reviewed the claim and decided that the claim is valid and overdue;

(C) the head of the agency has notified the individual in writing-

(i) that payment of the claim is overdue;

(ii) that, within not less than 60 days after sending the notice, the head of the agency intends to disclose to a consumer reporting agency that the individual is responsible for the claim;

(iii) of the specific information to be disclosed to the consumer reporting agency; and

(iv) of the rights the individual has to a complete explanation of the claim, to dispute information in the records of the agency about the claim, and to administrative repeal or review of the claim;

(D) the individual has not-

(i) repaid or agreed to repay the claim under a written repayment plan that the individual has signed and the head of the agency has agreed to; or

(ii) filed for review of the claim under paragraph (2) of this subsection;

(E) the head of the agency has established procedures to-

(i) disclose promptly, to each consumer reporting agency to which the original disclosure was made, a substantial change in the condition or amount of the claim;

(ii) verify or correct promptly information about the claim on request of a consumer reporting agency for verification of information disclosed; and

(iii) get satisfactory assurances from each consumer reporting agency that the agency is complying with all laws of the United States related to providing consumer credit information; and

(F) the information disclosed to the consumer reporting agency is limited to-

(i) information necessary to establish the identity of the individual, including name, address, and taxpayer identification number;

(ii) the amount, status, and history of the claim; and

(iii) the agency or program under which the claim arose.

(2) Before disclosing information to a consumer reporting agency under paragraph (1) of this subsection and at other times allowed by law, the head of an executive or legislative agency shall provide, on request of an individual alleged by the agency to be responsible for the claim, for a review of the obligation of the individual, including an opportunity for reconsideration of the initial decision on the claim.

(3) Before disclosing information to a consumer reporting agency under paragraph (1) of this subsection, the head of an executive or legislative agency shall take reasonable action to locate an individual for whom the head of the agency does not have a current address to send the notice under paragraph (1)(C).

( Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 971 ; Pub. L. 97–452, §1(15), Jan. 12, 1983, 96 Stat. 2470 ; Pub. L. 98–216, §1(5), Feb. 14, 1984, 98 Stat. 4 ; Pub. L. 99–514, §2, Oct. 22, 1986, 100 Stat. 2095 ; Pub. L. 101–552, §8(b), Nov. 15, 1990, 104 Stat. 2746 ; Pub. L. 102–365, §4(a)(4), Sept. 3, 1992, 106 Stat. 973 ; Pub. L. 103–272, §5(i)(1), July 5, 1994, 108 Stat. 1375 .)

Amendment of Section

For termination of amendment by section 11 of Pub. L. 101–552, see Termination Date of 1990 Amendment; Savings Provision note below.

Historical and Revision Notes
1982 Act

Revised Section	Source (U.S. Code)	Source (Statutes at Large)
3711(a)	31:952(a)(less words between 1st and 2d commas), (b)(1st sentence less words between 6th and 7th commas).	July 19, 1966, Pub. L. 89–508, §3, 80 Stat. 309 .
3711(b)	31:952(b)(2d sentence, last sentence words after semicolon).
3711(c)(1)	31:952(b)(last sentence words before semicolon).
3711(c)(2)	31:952(note).	July 8, 1976, Pub. L. 94–348, §3(e), 90 Stat. 818 .
3711(d)	31:952(c).
3711(e)	31:952(a)(words between 1st and 2d commas), (b)(1st sentence words between 6th and 7th commas).

In the section, the words "executive or legislative agency" are substituted for "agency" because of the restatement. The words "or his designee" are omitted as unnecessary.

In subsection (a), the word "Government" is added for consistency. In clause (2), the words "including the General Accounting Office" are omitted as surplus. In clause (3), the word "financial" is omitted as surplus.

In subsections (b) and (d), the word "official" is substituted for "officer" for consistency.

In subsection (b), the words "Comptroller General" are substituted for "General Accounting Office" for consistency. The words "has the same authority that the head of the agency has" are substituted for "have the foregoing authority" for clarity. The words "by another agency" are omitted as surplus. The words "only . . . may compromise" are substituted for "nor shall the head of an agency, other than . . . have authority to compromise" to eliminate unnecessary words.

In subsection (c)(1), the words "that appears to be fraudulent, false, or misrepresented by" are substituted for "as to which there is an indication of fraud, the presentation of a false claim, or misrepresentation on the part of" to eliminate unnecessary words. The words "the debtor or . . . other" and "in whole or in part" are omitted as surplus.

In subsection (c)(2), the words "Notwithstanding any provision of the Federal Claims Collection Act of 1966" are omitted as unnecessary. The words "arising" and "an amount" are omitted as surplus.

In subsection (d), the words "effected . . . authority conferred by", "on the debtor and on all officials, agencies, and courts of the United States", "destroyed", and "with a person primarily responsible" are omitted as surplus.

In subsection (e), the words "in conformity with" are omitted as surplus.

1983 Act

Revised Section	Source (U.S. Code)	Source (Statutes at Large)
3711(f)(1)	31 App.:952(d)(1).	July 19, 1966, Pub. L. 89–508, 80 Stat. 308 , §3(d)(1)–(3); added Oct. 25, 1982, Pub. L. 97–365, §3, 96 Stat. 1749 .
3711(f)(2)	31 App.:952(d)(2).
3711(f)(3)	31 App.:952(d)(3).

In subsection (f)(1), before clause (A), the word "Government" is substituted for "United States" for consistency in the revised title and with other titles of the United States Code. The words "subsection (a) of this section, or under any other" are omitted as surplus. The word "law" is substituted for "statutory authority" to eliminate unnecessary words. In clause (A), the words "for the system of records" are omitted as surplus. In clause (C)(iii), the word "intended" is omitted as surplus. In clause (E)(ii), the words "as appropriate" and "any or all" are omitted as surplus. In clause (E)(iii), the words "all laws of the United States" are coextensive with and substituted for "the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) and any other Federal law".

1984 Act

This is necessary to reflect the transfer of the non-positive law provisions of title 49 to title 49 appendix.

Amendments

1994-Subsec. (c)(2). Pub. L. 103–272 substituted "section 21302 of title 49 for a violation of chapter 203, 205, or 207 of title 49 or a regulation or requirement prescribed or order issued under any of those chapters" for "section 6 of the Act of March 2, 1893 (45 U.S.C. 6), section 4 of the Act of April 14, 1910 (45 U.S.C. 13), section 9 of the Act of February 17, 1911 (45 U.S.C. 34), and section 25(h) of the Interstate Commerce Act (49 App. U.S.C. 26(h))".

1992-Subsec. (c)(2). Pub. L. 102–365 substituted "$500" for "$250".

1990-Subsec. (a)(2). Pub. L. 101–552 temporarily substituted "$100,000 (excluding interest) or such higher amount as the Attorney General may from time to time prescribe" for "$20,000 (excluding interest)". See Termination Date of 1990 Amendment; Savings Provision note below.

1986-Subsec. (f)(1). Pub. L. 99–514 substituted "Internal Revenue Code of 1986" for "Internal Revenue Code of 1954".

1984-Subsec. (c)(2). Pub. L. 98–216 substituted "(49 App. U.S.C. 26(h))" for "(49 U.S.C. 26(h))".

1983-Subsec. (f). Pub. L. 97–452 added subsec. (f).

Termination Date of 1990 Amendment; Savings Provision

For termination of amendments by Pub. L. 101–552 and authority to use dispute resolution proceedings on Oct. 1, 1995, except with respect to certain pending proceedings, see section 11 of Pub. L. 101–552, set out as a Termination Date; Savings Provision note under section 571 of Title 5, Government Organization and Employees.

Existing Agency Authority To Litigate, Settle, Compromise, or Close Claims

Pub. L. 89–508, §4, July 19, 1966, 80 Stat. 309 , provided that: "Nothing in this Act [now this section] shall increase or diminish the existing authority of the head of an agency to litigate claims, or diminish his existing authority to settle, compromise, or close claims."

Cross References

Waiver of claims for overpayment of pay and allowances of employees of Executive agencies, see section 5584 of Title 5, Government Organization and Employees.

Section Referred to in Other Sections

This section is referred to in sections 3701, 3716 of this title; title 5 sections 552a, 5514, 5569; title 10 section 2780; title 18 section 1114; title 22 section 2671; title 26 section 6103; title 37 section 559; title 38 section 5301; title 42 section 404; title 49 sections 21302, 21303.