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Civil Resource Manual

227. Monitoring of Payment Agreements by the Department of Veterans Affairs Debt Management Center (DMC)

In the event a payment agreement is reached, either prior to, or after, judgment in a case involving a Department of Veterans Affairs (VA) educational allowance claim, the United States Attorney may utilize the VA's Debt Management Center (DMC) in St. Paul, Minnesota, to monitor the payments and close the file pursuant to USAM 4-3.230 USAM4-3.230. See USAM 4-3.231 USAM4-3.231.

The DMC monitoring system may be used for all existing post-judgment accounts. Pre-judgment accounts can be monitored provided that three consecutive timely payments have been received on existing accounts. However, pre-judgment accounts which involve garnishments are not included in the DMC monitoring system.

DMC must have a notification letter on all pre- and post-judgment accounts to be monitored. The letter of notification is also necessary with respect to existing post-judgment accounts. The notification should identify the account by the debtor's full name and VA file number, and state the monthly payment amount as well as the day of the month the payment will be due. Post-judgment cases will stipulate interest, U.S. Marshals' fees, and court costs. All payments must be on a monthly basis.

The USAO should inform the debtor that all payments must be made payable to the VA and mailed directly to the VA, Post Office Box 11930, Federal Building, Fort Snelling, St. Paul, Minnesota 55111. DMC will furnish a receipt to the debtor. The USAO should advise the debtor that the VA will be monitoring the account and that the VA will inform its attorney if the account becomes delinquent. The USAO's letter should warn the debtor of the consequences of the failure to maintain payments.

The monitoring system will work as follows: the VA will generate a letter to the debtor when a payment is 30 days delinquent. If payment on the account is not received within 40 days after dispatch of the delinquent letter to the debtor, the VA will notify the United States Attorney. If after issuance of the forty-day notice a payment is received, the VA will notify the United States Attorney. If no payment is received within 90 days, the VA will notify the United States Attorney that the VA has ceased monitoring the case. The notification will set forth criteria for reestablishing the account under the monitoring system.

All correspondence from the debtor requesting deviation from the repay agreement will be forwarded to the USAO for appropriate action. The United States Attorney will notify DMC of any change in the repay agreement.

Questions and problems concerning the monitoring of pre- and post-judgment accounts should be directed to Rose Johnson, Unit Chief, Litigation Referral and Disposition Section, at (800) 827-0648 or (612) 725-3485/3100.

[updated May 1998] [cited in USAM 4-3.231]