TN 32 (11-17)

GN 02210.214 Debtor Willing to Repay

A. Debtor agrees to full refund

When a debtor in non-pay status agrees to repay the full amount of a debt in a lump sum, follow the steps in this chart.

Step

Action

1

Explain that payment is due immediately.

2

Advise the debtor to:

  • Make the check or money order payable to Social Security Administration (SSA);

  • Include the full debt account number on the check or money order; and

  • Enclose the bill and send the payment in the preaddressed return envelope.

  • If the debtor does not have a preaddressed envelope, provide the mailing address:

    MATPSC
    P.O. Box 3430
    Philadelphia, PA 19122-9985

3

If the debtor is willing to make a full refund via credit card, follow GN 02210.205.

4

If a debtor indicates future payment, negotiate the earliest date possible. Under no circumstance, agree to a date that exceeds six months in the future. Obtain a Collection Query (see MS DMS 014.007).

Explain to a debtor that the Treasury Offset Program (TOP) and credit bureau reporting (if applicable) selects the debtor if we do not receive repayment within 60 days after the date of the due process notice. If the 60-day period expired, explain that the collection tools are already in effect, immediate full refund prevents offset, and updates the credit report to show a debt balance of zero (for non-BIC “C” Title II and Title XVI debtors). (For reporting Title XVI debts to credit bureaus, see SI 02220.014.)

5

If proposed due date for full refund is more than six months in the future, negotiate an installment agreement and follow GN 02210.214B.

6

If the proposed due date for full refund is less than six months in the future, and TOP and credit bureau reporting (if applicable) has not selected the debtor , explain that we use those collection tools if we do not receive repayment within 60 days after the date of the due process notice. If the 60-day period expired, explain that the collection tools are already in effect and that immediate full refund prevents offset and updates the credit report to show a debt balance of zero (for non-BIC “C” Title II and Title XVI debtors.) (For reporting Title XVI debts to credit bureaus, see SI 02220.014.)

  • Stop billing, if necessary.

  • Diary RECOOP for 15 days after the agreed upon date and code the reason for the diary.

7

Call the debtor again if there is no record of the refund when the diary matures. If TOP and credit bureau reporting (if applicable) selects the debtor, remind the debtor that we use those collection tools. Request full refund. If necessary, negotiate an installment amount and follow GN 02210.214B.

B. Debtor agrees to installment payment

When a debtor in non-pay status agrees to repay by installments, follow the steps in this chart.

Step

Action

1

Negotiate an installment amount that liquidates the debt within 12 months.

2

If unsuccessful, negotiate a rate that permits recovery within 36 months.

3

If not possible, negotiate the highest installment amount. Negotiate an installment amount that bears a reasonable relationship to the amount owed but not be less than $10.00 per month for both Title II and Title XVI debts.

4

Once the debtor agrees to an amount:

  • Negotiate the due date for the payment. If we referred the debtor for TOP and credit bureau reporting, explain that those collection tools remain in effect until we receive the first installment payment and that failure to continue to pay reactivates the collection tools. If TOP and credit bureau reporting (if applicable) selects the debtor but not yet referred, explain that we must receive payment within 60 days of the date of the due process notice, or we will use the collection tools.

  • Advise the debtor to make the payment by check or money order payable to SSA;

  • Show the full debt account number on the check or money order; and

  • Mail the first installment using the preaddressed return envelope and bill stub, if available.

  • If the debtor does not have a preaddressed envelope, provide the mailing address:

    MATPSC
    P.O. Box 3430
    Philadelphia, PA 19122-9985

5

Record the results of the conversation to the DMS RMKS screen. (See DMS 009.003).

6

For Title II, input the installment amount via the Record Installment Agreement (DRIN) screen.

For Title XVI, input the installment amount via a G TAC by completing the MSSICS Overpayment Decisions (UOPD) screen and select the RECOVER BY INSTALLMENTS Decision. (See SM 01311.235 and MS BUSSR 004.008.)

7

Diary RECOOP for 15 days after the agreed upon date for the first installment.

8

When the diary matures, check for the payment. If payment shows, take no further action.

9

If payment does not show, call the debtor for a new payment date. If TOP and credit bureau reporting (if applicable) selects the debtor, remind the debtor that we use those collection tools until payment under the agreement begins.

10

Go through steps 7 through 9 until we receive the first payment or make a decision that the debtor will not fulfill the promise to repay. (See GN 02210.217).

11

Consider renegotiation of an existing installment amount when there are missing installments or remittances that are less than the established installment amount. When the debtor misses installments or pays less than the established amount, mention that we will use TOP and credit bureau reporting (if applicable) if the debt meets all criteria (for criteria for the collection tools, see GN 02201.030, GN 02201.031, and GN 02201.032.)

12

If a Title II debtor wants to pay monthly installments via credit card, follow GN 02210.205.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202210214
GN 02210.214 - Debtor Willing to Repay - 11/22/2017
Batch run: 11/22/2017
Rev:11/22/2017