Possible Changes in the Minimum Amount for Collection Actions for Out-of-Service Debt Cases

An advance decision was requested with regard to possible changes in the minimum amount to be used for determining whether to engage in collection action for out-of-service debt cases. There is no objection, in principle, to the use of a reasonable method of establishing realistic points of diminishing returns for debt collection purposes when determining whether to engage in collection action, so long as the method is sufficiently flexible to serve the needs of the services while retaining appropriate controls within the system. However, the request for concurrence in the change of policy with respect to the establishing of minimum debt amounts for which collection action would be taken was not approved since the submission and other information available indicated differences, inaccuracies, and errors in the justification of such action. It must be demonstrated that the departments can accurately establish the point of diminishing returns in collection cases.