The Domestic Employment Reform Act of 1994 (DERA) authorizes the Social Security Administration (SSA) to report certain delinquent title II overpayment debts to credit bureaus. The Debt Collection Improvement Act of 1996 (DCIA) gave SSA permanent authority to continue credit bureau reporting.

In addition, the Fair Credit Reporting Act (FCRA) contains provisions on credit bureau reporting, including provisions on handling consumer disputes about information reported to credit bureaus by SSA and other credit reporting entities, see GN 02201.032D.2.

Credit bureau reporting is the posting of a debt to an individual's credit record. SSA uses credit bureau reporting as a way of influencing a debtor to repay a title II or title XVI debt.

SSA sends information about the debt/debtor to the national credit repositories, which are the largest holders of credit data. The credit repositories then provide the information to the smaller credit bureaus across the country. An SSA debtor could be denied a loan or credit based on the posting of an unrecoverable SSA debt on the credit report.

SSA's automated systems select certain delinquent title II debts for credit bureau reporting. The following criteria apply:

1. a. 

   The debtor was 18 years old when the debt was incurred;

2. b. 

   The debt must be considered to be “unrecoverable” under regulations issued by the Commissioner of Social Security (for definition of the term “unrecoverable debt”see GN 02201.031B);

3. c. 

   The debt must be owed by a person who is no longer entitled to receive Social Security benefits;

4. d. 

   The debtor must be alive;

5. e. 

   The debtor's beneficiary own account number (BOAN) must be on the Master Beneficiary Record (MBR),

6. f. 

   The debt must be $25.00 or more, and

7. g. 

   The debt must be delinquent for no more than 6 years and 6 months (for the definition of the term “delinquent”see GN 02201.030B.2.).

   NOTE: Based on these criteria, SSA does not report beneficiary identification code (BIC) "C" debtors to credit bureaus.

Each month, SSA's systems select title II debtors who reach unrecoverable status for credit bureau reporting.

SSA sends due process notices to the selected debtors, telling them that SSA intends to report their debts to credit bureaus. The notices tell the debtors that the following specific information will be reported:

1. a. 

   Debtor's name, address, and Social Security Number;

2. b. 

   Date of birth;

3. c. 

   Date the overpayment became delinquent (for definition of the term “delinquent”see GN 02201.030B.2.);

4. d. 

   Date of last payment, if any; and

5. e. 

   Past due balance of the overpayment.

If all criteria for credit bureau reporting continue to be met, SSA's systems report the debtor and debt information after the later of:

1. a. 

   The expiration of 60 days from the date of the notice, or

2. b. 

   The date on which SSA sends the debtor a decision on any request for review of the debt or waiver received during that 60-day period.

SSA is required to keep its debtor and debt information updated with the credit bureaus. SSA's systems perform the updates each month. SSA reports new information such as repayments, changes of address, and protests received after the debt is reported to the credit bureaus.

Follow procedure in GN 02201.030D.1.

Follow procedure in GN 02201.030D.2.

Follow procedure in GN 02201.030D.3.

Follow procedures in GN 02201.030D.4.

Follow instructions in GN 02201.030D.6.

If the debtor makes a compromise offer, process in accordance with existing instructions in GN 02215.100 through GN 02215.125. If SSA agrees to the offer, stress that payment must be received by us before the 60-day due process period expires or we will report the debt to the credit bureaus.

Follow the procedure in GN 02201.030D.8.

Follow procedures in GN 02201.030D.9.

Follow instructions in GN 02201.030D10.

Consumers have the right to dispute the accuracy of information about them reported to credit bureaus, including information reported by SSA. This will most likely occur after the debtor has received a copy of their credit report and sees that information reported by SSA has been posted to the report. The consumer can dispute either the amount or the fact of the debt. In some cases, consumers will dispute the accuracy by contacting the credit bureaus directly.

When the credit bureau is notified by the consumer of the dispute, it will contact SSA and request that we verify our records of the debt. The contact will occur via an online system called the Automated Consumer Dispute Verification (ACDV) system, which links the credit bureaus with SSA. (Currently, the ACDV process is handled by the Northeastern Program Service Center (NEPSC)).

Under the provisions of the Fair Credit Reporting Act, we have 30 days to respond to the dispute or the debt is deleted from the credit report. In most cases, SSA need only verify the fact or amount of the debt on the MBR or ROAR or both and notify the credit bureau via the online program that the debt is correct as reported.

Important: Do not process the consumer dispute as a request for reconsideration of the fact or amount of the debt. Requests for reconsideration of the fact or amount of the debt must be made directly to SSA and should be handled as described in GN 02201.030D.5.

If a debtor alleges they filed a protest or requested waiver before or during the 60-day due process period but never received a decision, obtain a ROAR query and proceed as follows:

• •

  If there is an Initial Waiver (23W) or Recon Fact/Amount (23R) posted before or during the 60-day due process period, but no decision has been made and released:

  • –

    Notify the Debt Management Program Analyst that the debt should be deleted from the credit report.

  • –

    Tell the debtor that the debt will be removed from the credit report.

  • –

    Follow instructions in GN 02201.030E.1.

• •

  If ROAR reflects an unfavorable reconsideration or waiver decision before or during the 0-day due process period:

  • –

    Advise the debtor that since the issue has been resolved, credit bureau reporting was appropriate

  • –

    Do not delete the debt from the credit record.

• •

  If there is no ROAR posting but the debtor still indicates a prior protest/waiver was filed:

  • –

    Look for an unprocessed SSA-632-BK, letter or SSA- 795 in FO records or in the claims folder.

  • –

    Also look in DMS REMARKS or the Special Message field for indications that a waiver was requested but not posted to the system. If you find evidence of a prior protest, proceed as follows:

    • •

      Notify the Debt Management Program Analyst that the debt should be deleted from the credit report.

    • •

      Tell the debtor that the debt will be removed from the credit report.

    • •

      Post the pending request to ROAR via the DRPR or DRPF screen.

If the records review fails to produce any evidence of a protest or waiver filed before or during the 60-day due process period:

• •

  Notify the debtor that the reporting was correct.

• •

  Ask if the debtor wishes to file a new waiver request. If so, follow GN 02201.030D.3.

If a request for waiver is received after the 60-day due process period and the debt has been reported to the credit bureau, proceed as follows:

• •

  Obtain an SSA-632-BK in accordance with current instructions in GN 02250.002.

• •

  Advise the debtor that the waiver will be processed as soon as possible, but that the debt will remain reported to the credit bureau.

• •

  If the debt is eventually waived, SSA will update the credit report to show a balance of zero.

• •

  Establish the agreement per GN 02210.180.

• •

  Advise the debtor the debt will remain reported to the credit bureau but that SSA will update the balance to reflect the most recent repayment.

• •

  If debtor alleges a bankruptcy petition was filed and the debt was discharged, request evidence of proof of the discharge.

  • –

    If proof is received, inform the debtor the debt will be removed from the credit report. (See GN 02215.190 - GN 02215.235).

  • –

    If the debt is discharged without exception, call to notify or email the Debt Management Program Analyst that the debt should be deleted from the credit report.