Effective Dates: 05/06/2025 - Present Previous | Next

TN 132 (05-25)

SI 02220.014 Reporting title XVI overpayment debts to credit bureaus

A. General policy

1. Authority for credit bureau reporting

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 (for more information about consumer disputes, see SI 02220.014D.1).

2. General description of credit bureau reporting

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 and 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.

3. Criteria for selecting title XVI debts for credit bureau reporting

SSA's automated systems select certain delinquent title XVI debts for credit bureau reporting.

Credit bureau reporting occurs when the following criteria apply to the debt:

  • •

    The debtor must be alive;

  • •

    The debtor is not eligible for Supplemental Security Income benefits;

  • •

    The debtor was at least 18 years of age when the debt was incurred;

  • •

    The debt must be $25.00 or more;

  • •

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

  • •

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

B. Process

1. Debtor selection

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

NOTE: 

If the debt has not yet been reported to the credit bureau, the presence of a K TAC would prevent it from being reported.

2. Debtor notification

SSA sends an automated due process notices 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 (for definition of the term “delinquent” see SI 02220.012B.2);

  4. d. 

    Date of last payment, if any; and

  5. e. 

    Past due balance of the overpayment.

NOTE: 

SSA sends one notice to inform the debtor about TOP, TRO, administrative offset, administrative wage garnishment, and credit bureau reporting. The same repayment options and due process rights described in SI 02220.012A.4 are offered for credit bureau reporting and for all collection tools.

NOTE: 

All ECO notices sent November 2015 or later will be stored in ORS. For all ECO notices sent prior to November 2015 you can view the ECO master query. For additional information on the ECO master query, see MS 01114.007.

3. Credit bureau reporting

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.

4. Updates to credit bureau reports

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 updated information such as repayments, changes of address and protests received after the debt is reported to the credit bureaus.

NOTE: 

If a debtor becomes re-entitled and benefit withholding resumes, SSA's systems will automatically update the credit bureau with the collections and the most current debt balance.

C. Handling debtor inquiries and protests during the 60-day due process period

Shortly after selecting the debtors, SSA sends the individual a notice about the planned actions(s). The notice informs the debtor:

  • •

    They owe a delinquent debt for a specified amount;

  • •

    That SSA plans to:

    • –

      refer the debt to Treasury for Tax Refund Offset (TRO) or

    • –

      refer the debt to Treasury Offset Program (TOP), and

    • –

      send information about the debt to credit bureaus after 60 days have expired from the date on the notice;

  • •

    That SSA will not take this action if before the end of that 60-day period:

    • –

      the debtor pays the debt in full,

    • –

      makes regular installment payments under an agreement with SSA,

    • –

      requests waivers, or

    • –

      furnishes evidence showing:

      • •

        they do not owe all or part of the stated amount or

      • •

        SSA does not have the right to collect the debt; and

  • •

    The debtor may inspect and copy SSA's records about the debt.

Debtors will react to the 60-day due process notice in a variety of ways. This section provides the procedures for how to handle the debtor reactions most likely to occur after the due process notice is sent and before the debt is reported to the credit bureaus.

1. Request for explanation of overpayment

Follow procedure in SI 02220.012D.1.

2. Request for waiver

Follow procedure in SI 02220.012D.3.

NOTE: If a waiver request is pending at the end of the 60-day due process period, the debt will not be reported to the credit bureaus.

3. Request to inspect SSA's records

Follow procedure in SI 02220.012D.4.

4. Request for installment payments

Follow SI 02220.012D.5 and SI 02220.025.

5. Debtor objects to collection of debt

A debtor may object to collection of the debt for two reasons:

  • •

    they object to SSA's determination the debt is past due and legally enforceable, or

  • •

    protest the fact or amount of debt.

  1. a. 

    Protest involves request for review of the debt or the legality of collection

    If the debtor 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. For policy and procedure when the protest involves a request for review of the debt or the legality of collection, follow SI 02220.012D.6 .

  2. b. 

    Protest involves the fact or amount of overpayment or both

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

6. Debtor alleges non-receipt of overpayment

Follow procedure in SI 02220.012D.7.

7. Debtor makes a compromise offer

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.

8. Debtor alleges non-receipt of initial overpayment notice

Follow the procedure in SI 02220.012D.9.

9. Report of death

Follow procedures in SI 02220.012D.10.

10. Report of bankruptcy action

Follow procedures in SI 02220.012D.11.

D. Handling debtor inquiries or protests after Credit Bureau Reporting

Generally, inquiries and protests received after the debt has been reported to the credit bureaus will be updated when SSA's systems automatically pass current debt balance and last payment information to the credit bureaus. Once a debt has been reported, it will remain on the debtor's credit record (with a few exceptions as explained below).

1. Consumer disputes report with the credit bureau

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 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 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 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 SI 02220.012D.6.b.

2. Allegation of pending protest or waiver request

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

Obtain an SSID query.

a. FO instructions

Follow the steps:

Step 1 - Develop the existence of a protest before or during the 60-day due process period.

  • •

    Develop the protest by looking for a:

  • •
    • –

      SSA-632-BK

    • –

      letter from the debtor or their representative; or

    • –

      Form SSA-795 in FO records or in the claims folder (for SSI folder retrieval instruction,see SM 01201.205 through SM 01201.235 ).

    • –

      pending waiver or appeal request posted in the OPDD section of the SSR (for codes and definitions,see SM 01311.421).

If you find evidence a protest exists before or during the 60-day due process period, but no decision has been made and released, a determination must be completed (see SI 04070.010B). Continue to step 2.

If SSA finds:

  • •

    No evidence of a protest or waiver filed, or

  • •

    A collection decision (meaning waiver or protest denied) is reflected on the SSR

Then notify the debtor the reporting was correct.

  • •

    Ask if the debtor wishes to file a new waiver request.

    • –

      If yes - see SI 02220.014D.3.

    • –

      If no:

      • •

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

      • •

        Provide the debtor with a copy of the decision, if requested.

      • •

        Do not have the debt deleted from the credit record.

Step 2 - If the protest request is not present on the SR, post the protest request to the SSR by completing:

  • •

    Waiver - MSSICS Waiver (UOWV) screen (see MS 00304.009 and SM 01311.423) or

  • •

    Appeal - MSSICS Appeal (UOAP) screen (see MS 00304.010 and SM 01311.423).

Continue to step 3.

Step 3 - Process the:

If the waiver is approved:

  • •

    see MS 00304.007G and MS 00304.007H and

  • •

    change the waiver request to a waiver approval by completing the Direct SSR Update Waiver (UOWV) screen.

If the waiver is not approved:

  • •

    Document the waiver denial by changing the waiver to a waiver denial by completing the UOWV screen (see MS 00304.009).

If the appeal is approved or denied:

  • •

    Update the determination on the MSSICS Appeal (UOAP) screen, and

  • •

    send a determination notice.

Step 4 - If the protest is approved - address the credit report

  • •

    Inform the debtor the debt will be removed from the credit report, and

  • •

    Contact an NEPSC Program Analyst by phone, or request assistance by email from the RO indicating the debt should be deleted from the credit record. The DMS will contact the SSA person with authority to delete the item from the credit record.

b. PC instructions

If the debtor contacts the processing center directly regarding an allegation of a pending waiver or protest before or during the 60-day due process period, forward the information to the FO as follows:

  • •

    Refer a priority Modernized Development Worksheet (MDW) to the jurisdictional FO:

    • –

      Request the FO to develop the allegation of pending waiver or protest.

  • •

    Annotate the referral Necessary Action - Credit Bureau Case - Do Not Backlog.

The FO should follow the instructions in SI 02220.014D.2.a.

3. Request for waiver

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:

  • •

    Obtain an SSA-632-BK (see TC 26001.080 and TC 27040.025)

  • •

    Advise the debtor that:

    • –

      the waiver will be processed as soon as possible.

    • –

      the debt will remain reported to the credit bureau until a decision is made.

    • –

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

4. Request for installment payments

If the debtor wants to repay the debt by monthly installments, to negotiate a reasonable monthly payment amount followSI 02220.025B.2 .

Advised the debtor:

  • •

    the debt will remain reported to the credit bureau.

  • •

    SSA will update the balance to reflect each recent payment.

For instructions on adding the installment agreement G TAC, on the SSR, see SI 02220.025B.2, SM 01311.235, and MS 00304.008).

5. Report of bankruptcy action

If the debtor alleges a bankruptcy petition was filed and the debt was discharged, obtain a copy of the petition or discharge order.

If proof is received:

  • •

    Complete actions in SI 02220.012D.11.

  • •

    Inform the debtor the debt will be removed from the credit report.

  • •

    Contact an NEPSC Program Analyst by phone or email the RO requesting the debt should be deleted from the credit record. The DMS will contact the SSA person with authority to delete the item from the credit record.

 

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0502220014
SI 02220.014 - Reporting title XVI overpayment debts to credit bureaus - 05/06/2025
Batch run: 05/06/2025
Rev:05/06/2025