B-229152.2, Dec. 2, 1987, Office of General Counsel
Highlights
Swindall: This is in response to material forwarded to this Office by the Veterans Administration (VA) regarding correspondence from your constituent. We were concerned because Mr. Renfroe indicated in his letter that a ruling by the Comptroller General had prompted the federal agency involved to obtain the services of tracers to locate parties that are owed funds. We have learned that the sum at issue is apparently due from monies held in trust by the Department of Housing and Urban Development (HUD) in the Mutual Mortgage Insurance Fund. We are not aware of any specific legal prohibition against such activities. We are enclosing a copy of our referenced decision.
B-229152.2, Dec. 2, 1987, Office of General Counsel
MISCELLANEOUS TOPICS - Housing/Community Development - Mortgage Insurance - Refunds - Distribution DIGEST: Decision concerning Mutual Mortgage Insurance Fund claims, B-201699, November 26, 1985, did not address the propriety of third-party tracers informing citizens of money owed them by the government and offering to assist them in recovering payment for a fee.
Mr. Swindall:
This is in response to material forwarded to this Office by the Veterans Administration (VA) regarding correspondence from your constituent, James J. Polak. Mr. Polak wrote to you in reference to a solicitation he received from Paul R. Renfroe (doing business as Taxpayer Refund Recovery Service).
Although he revealed few details, Mr. Renfroe's letter indicated that the federal government owes Mr. Polak a refund of $546.62. Mr. Renfroe, having located Mr. Polak at his current address, offered, for a contingent fee, to assist Mr. Polak in securing this refund.
Because Mr. Polak suspected that the refund may be due from the VA, you sent an inquiry to the VA. Personnel there determined that the VA did not owe Mr. Polak any money and forwarded the information to our Office for response.
Generally, we view such contractual arrangements as matters between private citizens not of direct concern to our Office. In this case, however, we were concerned because Mr. Renfroe indicated in his letter that a ruling by the Comptroller General had prompted the federal agency involved to obtain the services of tracers to locate parties that are owed funds.
After contacting Mr. Renfroe, we have learned that the sum at issue is apparently due from monies held in trust by the Department of Housing and Urban Development (HUD) in the Mutual Mortgage Insurance Fund. B-201669, November 26, 1985, we held that statutes of limitations do not run against claims by beneficiaries for amounts held in the Fund. B-201669, Nov. 26, 1985. The decision did not address the propriety of third-party tracers informing citizens of money owed them by the government and offering to assist, for a fee, in securing payment. However, we are not aware of any specific legal prohibition against such activities.
We are enclosing a copy of our referenced decision. If we can be of further assistance, please contact us.