The Foster Care Independence Act (FCIA) of 1999 authorized SSA to report certain delinquent title XVI overpayment debts to credit bureaus.

In addition, the Fair Credit Reporting Act (FCRA) contains provisions on credit bureau reporting, including handling consumer disputes about information reported to credit bureaus by SSA and other credit reporting entities (see SI 02220.014D.1. for more information about consumer disputes).

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 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 XVI debts for credit bureau reporting. The following criteria apply:

1. a. 

   The debtor must have attained age 18 before the debt was incurred;

2. b. 

   The debt must be considered to be “unrecoverable” under regulations issued by the Commissioner of Social Security (see SI 02220.013B.1. for definition of the term “unrecoverable”);

3. c. 

   The debt must be owed by a person who is no longer entitled to receive Supplemental Security Income payments

4. d. 

   The debtor must be alive;

5. e. 

   The debt must be $25.00 or more.

6. f. 

   The debt must be delinquent for no more than 6 years and 6 months (see SI 02220.012B for the definition of the term “delinquent”).

Each month, SSA's systems select title XVI debtors whose debts have reached unrecoverable status for credit bureau reporting.

SSA sends an automated due process notice to the selected debtors, telling them that SSA intends to report their debts to credit bureaus. The notice tells 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 (See SI 02220.012B.2. for definition of the term “delinquent”);

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

Follow procedure in SI 02220.012E.1.

Follow procedure in SI 02220.012E.3. and SI 02260.001.

Follow procedure in SI 02220.012E.4.

Follow SI 02220.012E.5. and SI 02220.025.

1. a. 

   Protest Involves Request for Review of the Debt or the Legality of Collection

   If the debtor alleges that he or she does not owe all or part of the balance stated in the notice or that SSA has no legal right to collect the debt or that there is no overdue debt, advise that if he or she wishes us to review these findings before we report the debt to the credit bureaus, we must receive evidence to support the allegations within 60 days from the date of the due process notice. Follow SI 02220.012E.6. to review any evidence/statements.

2. b. 

   Protest Involves the Fact and/or Amount of Overpayment

   The 60-day due process notice telling the debtor about credit bureau reporting does not offer the right to request reconsideration of the fact and/or amount of the overpayment. If the debtor still protests the fact and/or amount, follow the procedures in SI 02220.012E.6.b.

Follow procedure in SI 02220.012E.7.

If the debtor makes a compromise offer, process in accordance with existing instructions in SI 02220.030. If SSA agrees to the offer, stress that we must receive payment before the 60-day due process period expires or we will report the debt to the credit bureaus.

Follow the procedure in SI 02220.012E.9.

Follow procedures in SI 02220.012E.10.

Follow procedures in SI 02220.012E.11.

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

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 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 SSR 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/amount of the debt. Requests for reconsideration of the fact/amount of the debt must be made directly to SSA and should be handled as described in SI 02220.012E.6.b.

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

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

1. a. 

   Obtain an SSA-632-BK in accordance with current instructions in SI 02260.005.

2. b. 

   Notify 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.

1. a. 

   Establish the agreement per SI 02220.025

2. b. 

   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.

1. a. 

   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 02215.185 and GN 02215.230A.)

2. b. 

   Post an uncollectable debt indicator (N TAC) on the SSR by selecting UNCOLLECTABLE on the Overpayment Decisions (UOPD) screen in MSSICS (see MS 00304.008).

3. c. 

   Call or email the Program Analyst that the debt should be deleted from the credit report.