|
 |
COLLECT ON DELINQUENT LOANS
Agencies may require a contractor to perform some or all
of the tasks associated with collecting on delinquent loans
for the loans being serviced by the contractor. Agencies may
issue task orders that include requirements for this service
which contain services similar to the those described below.
A task order may require any combination of these services.
These services illustrate some of the types of tasks that the
contractor may be required to perform under this contract, but
this is not intended to be an all inclusive list. Rather, it
illustrates the types of services a contractor may provide.
When required, agencies may issue task orders
that include the collection of delinquent loans which may require,
but are not limited to the following types of tasks:
- The contractor may be required to follow the lender due
diligence requirements specified in 34 CFR 682.411 for some
student loans, or an alternative collection process approved
by the ordering agency when collecting delinquent loans.
- The contractor may be held responsible for performance
of collection activities in accordance with agency requirements.
- If the contractor is notified that a borrower received
a loan for which the borrower was not eligible, the contractor
may be required to send a final demand notice to the borrower
requesting payment in full within a specified time period.
If the borrower does not pay in full or provide reasons
why the loan should not be paid in full, the contractor
may be required to notify an agency’s central database that
the loan is in default so that the loan will be transferred
to an agency's debt collection service.
- The contractor may be required to provide information
to ensure delinquent borrowers understand the collection
process and their benefits, rights, and responsibilities.
The contractor may be required to maintain borrower contact
by means of letters, telephone calls, and other notifications
as appropriate.
- The contractor may be required to take action to recover
a debt from its endorser (if applicable) when a debt becomes
delinquent. When collecting from an endorser, the contractor
may be required to use the same types of letters and bills
that it uses to collect from the primary borrower.
- The contractor may be required undertake a customer and
results oriented focus to collection activities and ensure
that all attempts to collect are fair and reasonable, and
do not involve harassment, intimidation, false or misleading
representation and that no communications concerning a debt
involve persons other than the debtor or the debtor's attorney.
- The contractor may be required to record all collection
activity occurring on an account. This information may include
skip-trace attempts that have produced specific information
on the location of the debtor, written and verbal contacts
to, from, and concerning the debtor or the debtor's representative,
repayment negotiations, and all other pertinent data on
each account. The contractor may also be required to record
the name, address, home and work telephone number changes,
and information regarding the debtor's employment, (e.g.,
employer's name, address and telephone number).
- Maintain the results of all collection activities and
provide summary and detailed reports, including account
status reports when requested.
|
