B-130782, APR. 11, 1957

B-130782: Apr 11, 1957

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IN YOUR LETTER YOU SAY THAT IT APPEARS UNJUST TO HOLD YOU LIABLE WHEN YOU WERE "PUT IN THIS POSITION BY A V.A. YOU FURTHER STATE THAT YOU ARE INTERESTED IN APPEALING TO THE NEXT HIGHER AUTHORITY AND REQUEST ADVICE AS TO YOUR NEXT STEP. THE COMPROMISE OR WAIVER OF A DEBT SUCH AS HERE INVOLVED IS A MATTER FOR DETERMINATION BY THE VETERANS ADMINISTRATION PURSUANT TO SECTION 509 OF THE ABOVE-CITED ACT. ALLEGATIONS OF FACTS INDICATING FRAUD ON THE PART OF THE BUILDER AS WELL AS STATEMENTS AS TO ADVICE RECEIVED BY YOU FROM A VETERANS ADMINISTRATION EMPLOYEE WERE SET FORTH IN YOUR AFFIDAVIT. THAT A COMPROMISE OF THE INDEBTEDNESS IS NOT PRECLUDED SHOULD YOU SEE FIT TO SUBMIT AN OFFER TO SATISFY THE INDEBTEDNESS FOR THE PAYMENT OF A FIXED CASH AMOUNT OR ON THE BASIS OF INSTALLMENT PAYMENTS.

B-130782, APR. 11, 1957

TO TECHNICAL SERGEANT JOHN E. REMALI, AF 36 111 549:

BY LETTER DATED FEBRUARY 6, 1957, THE SETTLEMENTS DIVISION, AIR FORCE FINANCE CENTER, DENVER, COLORADO, FORWARDED TO OUR OFFICE YOUR LETTER DATED JANUARY 17, 1957, REGARDING YOUR INDEBTEDNESS TO THE UNITED STATES IN THE PRINCIPAL AMOUNT OF $2,581.33, PLUS INTEREST. THE DEBT ARISES FROM YOUR DEFAULT UNDER LOAN NO. LHC-47800-MICH., GUARANTEED BY THE VETERANS ADMINISTRATION UNDER THE SERVICEMEN'S READJUSTMENT ACT OF 1944, AS AMENDED 38 U.S.C. 694, AND FOLLOWING SECTIONS.

IN YOUR LETTER YOU SAY THAT IT APPEARS UNJUST TO HOLD YOU LIABLE WHEN YOU WERE "PUT IN THIS POSITION BY A V.A. EMPLOYEE" AND ASK THAT THE AIR FORCE FINANCE CENTER AGAIN SUBMIT YOUR APPLICATION FOR RECONSIDERATION BY THE COMMITTEE ON WAIVERS AND COMPROMISES IN ORDER THAT THE ISSUE OF FRAUD BY THE BUILDER AND BAD ADVICE BY THE VETERANS ADMINISTRATION EMPLOYEE CAN BE CONSIDERED ALONG WITH THE HARDSHIP ISSUE. YOU FURTHER STATE THAT YOU ARE INTERESTED IN APPEALING TO THE NEXT HIGHER AUTHORITY AND REQUEST ADVICE AS TO YOUR NEXT STEP.

THE COMPROMISE OR WAIVER OF A DEBT SUCH AS HERE INVOLVED IS A MATTER FOR DETERMINATION BY THE VETERANS ADMINISTRATION PURSUANT TO SECTION 509 OF THE ABOVE-CITED ACT, 38 U.S.C. 694J (4). ACCORDINGLY, ON NOVEMBER 21, 1956, OUR OFFICE REFERRED TO THE LOAN GUARANTY COMMITTEE ON WAIVERS AND COMPROMISES, VETERANS ADMINISTRATION REGIONAL OFFICE, 310 E. JEFFERSON AVENUE, DETROIT, MICHIGAN, A LETTER DATED AUGUST 10, 1956, FROM THE 1ST SUPPLY SQUADRON, 1ST FIGHTER GROUP (AIR DEFENSE) (ADC), SELFRIDGE AIR FORCE BASE, MICHIGAN, REQUESTING REMISSION OF YOUR INDEBTEDNESS, TOGETHER WITH AN AFFIDAVIT EXECUTED BY YOU ON AUGUST 3, 1956. ALLEGATIONS OF FACTS INDICATING FRAUD ON THE PART OF THE BUILDER AS WELL AS STATEMENTS AS TO ADVICE RECEIVED BY YOU FROM A VETERANS ADMINISTRATION EMPLOYEE WERE SET FORTH IN YOUR AFFIDAVIT. THE REPLY DATED DECEMBER 14, 1956, OF THE CHAIRMAN, LOAN GUARANTY COMMITTEE ON WAIVERS AND COMPROMISES, ADDRESSED TO THE AIR FORCE FINANCE CENTER, STATED THAT NO BASIS EXISTS FOR A WAIVER IN YOUR CASE, BUT THAT A COMPROMISE OF THE INDEBTEDNESS IS NOT PRECLUDED SHOULD YOU SEE FIT TO SUBMIT AN OFFER TO SATISFY THE INDEBTEDNESS FOR THE PAYMENT OF A FIXED CASH AMOUNT OR ON THE BASIS OF INSTALLMENT PAYMENTS, ANY SUCH OFFER TO BE SUBMITTED TO THE GENERAL ACCOUNTING OFFICE.

INASMUCH AS YOUR PRESENT REQUEST DOES NOT SET FORTH ANY FACTS OTHER THAN THOSE HERETOFORE PRESENTED TO THE CHAIRMAN, LOAN GUARANTY COMMITTEE ON WAIVERS AND COMPROMISES, NO BASIS EXISTS FOR OUR RESUBMITTING THE MATTER AT THIS TIME. HOWEVER, AS POINTED OUT IN THE CHAIRMAN'S LETTER OF DECEMBER 14, 1956, THE DECISION OF THE COMMITTEE DOES NOT PRECLUDE A COMPROMISE OF THE INDEBTEDNESS SHOULD YOU SEE FIT TO SUBMIT AN OFFER. SUCH AN OFFER, IF ACCEPTED, WOULD OPERATE IN FULL SATISFACTION OF THE DEBT.

WE REQUEST, THEREFORE, THAT YOU ADVISE OUR OFFICE WHETHER YOU ARE ABLE TO MAKE SUCH AN OFFER OF COMPROMISE AND THE AMOUNT WHICH YOU WOULD BE ABLE TO PAY IN A FIXED CASH SUM OR ON THE BASIS OF INSTALLMENTS. UPON RECEIPT OF SUCH ADVICE FROM YOU WE SHALL REFER THE MATTER TO THE VETERANS ADMINISTRATION FOR CONSIDERATION.

INTEREST AT THE RATE OF FOUR PERCENT PER ANNUM CONTINUES TO ACCRUE ON YOUR INDEBTEDNESS, AND ACCORDINGLY ARRANGEMENTS FOR SETTLEMENT SHOULD BE MADE WITHOUT FURTHER DELAY.