PRIA, Government Policy, Made Personal

Summary

The federal government can charge interest and collection fees on certain amounts a person owes to the United States. This applies to debts from participating in benefits programs run by the Secretary (but not loans, disability pay, pensions, or education benefits), debts for care or services under chapter 17, and some loan-program debts when the loan rules allow it. Interest starts on the day the first notice is mailed to the person at the most recent address the Secretary has. No interest is charged for any time before October 17, 1980, or if the debt is paid within a reasonable time after that notice. The Secretary will set what “reasonable” means, set the interest rate based on what the United States pays to borrow, and decide which collection costs are reasonable to charge.

Title 38, §5315

Veterans' Benefits, Source: USLM XML via OLRC

(a)Notwithstanding any other provision of this title or of any other law and subject to section 3485(e) and 5302 of this title, interest and administrative costs (as described in subsections (b) and (c) of this section) shall be charged, under regulations which the Secretary shall prescribe, on any amount owed to the United States—

(1)for an indebtedness resulting from a person’s participation in a benefits program administered by the Secretary other than—

(A)a loan, loan-guaranty, or loan-insurance program;

(B)a disability compensation program;

(C)a pension program; or

(D)an educational assistance program.

(2)for an indebtedness resulting from the provision of care or services under chapter 17 of this title; or

(3)to the extent not precluded by the terms of the loan instruments concerned, for an indebtedness resulting from a person’s participation in a program of loans, loan guaranties, or loan insurance administered by the Secretary under this title.

(b)(1)Interest on the amount of any indebtedness described in subsection (a) of this section shall accrue from the day on which the initial notification of the amount due is mailed to the person who owes such amount (using the most current address of such person that is available to the Secretary), but interest under this section shall not be charged (A) for any period before October 17, 1980, or (B) if the amount due is paid within a reasonable period of time. The Secretary shall, in the regulations prescribed pursuant to subsection (a) of this section, prescribe what constitutes a reasonable period of time for payment of an indebtedness after the initial notification of indebtedness has been mailed.

(2)The rate of interest to be charged under this section shall be based on the rate of interest paid by the United States for its borrowing and shall be determined by the Secretary under such regulations.

(c)The administrative costs to be charged under this section with respect to an amount owed to the United States shall be so much of the costs incurred by the United States in collecting such amount as the Secretary determines, under such regulations, to be reasonable and appropriate.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2022—Subsec. (a)(1). Pub. L. 117–328 designated existing provisions as introductory provisions, substituted “other than—” for “other than a loan, loan-guaranty, or loan-insurance program;”, and added subpars. (A) to (D). 1998—Subsec. (b)(1). Pub. L. 105–368 substituted “October 17, 1980,” for “the date of the enactment of this section,”. 1991—Pub. L. 102–40, § 402(b)(1), renumbered section 3115 of this title as this section. Subsec. (a). Pub. L. 102–83, § 5(c)(1), substituted “3485(e)” for “1685(e)” in introductory provisions. Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” in introductory provisions. Pub. L. 102–83, § 4(a)(1), substituted “administered by the Secretary” for “administered by the Veterans’ Administration” in pars. (1) and (3). Pub. L. 102–40, § 402(d)(1), substituted “5302” for “3102” in introductory provisions. Pub. L. 102–16 substituted “section 1685(e) and 3102” for “section 3102” in introductory provisions. Subsecs. (b), (c). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date

of 2022 Amendment Pub. L. 117–328, div. U, title II, § 253(b), Dec. 29, 2022, 136 Stat. 5464, provided that: “The

Amendments

made by subsection (a) [amending this section] shall apply with respect to an indebtedness that occurs on or after the date of the enactment of this Act [Dec. 29, 2022].”

Effective Date

Section effective Oct. 1, 1980, except as otherwise specifically provided, see section 802(f) of Pub. L. 96–466, set out as a note under section 5314 of this title.

§5315 Interest and Administrative Cost Charges on Delinquent Payments of Certain Amounts Due the United States

Summary

Title 38, §5315

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Amendments

Effective Date

Citations & Metadata