Comments on S. 1518, To Strengthen VA Debt-Collection and Program-Study Efforts

S. 1518 would amend title 38, United States Code, to strengthen the Veterans Administration's (VA) debt-collection and program-study efforts by authorizing disclosures of certain information to consumer reporting agencies. Two matters of concern were discussed. As presently worded, S. 1518 would require consumer reporting agencies to establish special procedures to accommodate the VA, including penalties for noncompliance, which are different from their normal operations and procedures under the Fair Credit Reporting Act. The credit bureau industry has objected to a requirement to alter their operating procedures and computer programs. It is suggested that S. 1518 should not impose any unique requirements on consumer reporting agencies. Secondly, a substantial portion of the provisions in the present version of S. 1518 would impose upon VA detailed debt collection procedures. GAO believes that the main thrust of the proposed amendment should focus on granting VA an exception to the prohibition against disclosure of data in veterans' claims files, and the Senate Committee on Veterans' Affairs should provide detailed operating procedures to indicate congressional intent in the Committee report accompanying the legislation and in the VA implementing regulations.