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B-197679 1 (1980-03-31)

handle is hein.gao/gaobadidb0001 and id is 1 raw text is: 


                               TH-E COMPTROLLER   GENERAL
      DECISION      .        . OF  THE   UNITED STATES
                               WASHINGTON, D. C. 20548



      FILE:         B-197679        DATE:    March 31, 1980

      MATTER  OF:  Lcollection Of Interest On Veterans
                    Administration Benefit Overpayments
      DIGEST:


        1.  Distinction between contractual debts and
            those arising from overpayments of noncon-
            tractual benefits is not relevant in deter-
            mining whether it is proper to charge inter-
            est on debts due the Government, pursuant to
            Federal Claims Collection Standards. Thus,
            absent a statute or other rule to the con-
            trary, Veterans Administration (VA) has
            authority to charge interest on equitable
            theory that creditor is entitled to com-
            pensation for detention of his money with-
            out regard to manner in which obligation
            arose.

        2.  Federal Claims Collection Standards do not
            mandate procedural requirements to be fol-
            lowed by agencies in charging interest on
            delinquent debts. Therefore VA is free to
            adopt such procedural refinements as it deems
            appropriate.  For example, where debtor could
            demonstrate that original debt notification
            was never received, imposition of interest
            for time between original notification and
            later set-off against other amounts due
            debtor by Government would appear to be
            inequitable.  Consequently, it might be
            desirable to provide by regulation for a
            second notification.

     By letter of January 29, 1980, the General Counsel
of the Veterans Administrati-on (VA) requested our advice
o E implementing section 102.11 of the Federal Claims
Collection Standards. That section was recently revised
to provide in part:

             In the absence of a -different rule pre-
          scribed by statute, contract, or regulation,
          interest should be charged on delinquent debts
          and debts being paid in installments in con-
          formity with the Treasury Fiscal Requirements

                             -04           1119

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