8 - DOJ PC TOP Policy Statement.pdf

This is a Department of Justice Policy Statement (1400.03) establishing procedures for Private Counsel Offices to refer eligible civil debts to the Treasury Offset Program (TOP).

The policy requires Private Counsel Offices under DOJ contracts for debt collection services to begin referring eligible civil debts to TOP for administrative offset, a significant change from historical practice where PC debts were not referred. The Debt Collection Management Staff (DCM) manages this program for DOJ and oversees PC compliance. Prior to referral, debtors must receive a Notice of Intent (NOI) explaining the debt amount, reason for claim, intention to collect through offset, and debtor rights. DCM refers debts to TOP 60 days after the NOI is sent. Debts ineligible for TOP referral include those paid in full, with balances under $25, in foreclosure, or subject to bankruptcy actions where the override flag is not selected. The PC may add or remove debtors on payment plans to and from TOP in accordance with contract terms. Eligible federal payments for offset include income tax refunds, salary, travel advances, reimbursements, retirement payments, vendor payments, and some Social Security benefits. Removal from TOP may take up to four weeks and occurs when debts are paid, debtors file bankruptcy, cases close, acceptable payment arrangements are made, or debtors are deceased. DCM will not pay contingency fees to PCs for collections received through TOP offsets. The policy references DOJ Instruction 1400.03.02 for detailed referral procedures and includes appendices detailing exempt payments under federal law, civil debt certification requirements, and Consolidated Debt Collection System codes.