3.12—Reporting of consumer debts.
(a) Notice.
In demand letters to debtors sent in accordance with § 3.11, agencies shall inform debtors:
(1)
The intent of the agency to report the delinquent consumer debt to credit reporting agencies after 60 days;
(2)
The specific information to be transmitted (i.e., name, address, and taxpayer identification number, information about the debt);
(3)
The actions which may be taken by the debtor to prevent the reporting (i.e., repayment in full or a repayment agreement); and
(4)
The rights of the debtor to seek review of the existence of the debt in accordance with subpart F.
(b) Disclosure.
Disclosure of delinquent consumer debts must be consistent with the requirements of 31 U.S.C. 3711(e), the Privacy Act of 1974 (5 U.S.C. 552a ), the Bankruptcy Code, and 31 CFR 901.4.
(c) Non-duplication of hearings.
When an agency has given a debtor any of the notices required by this part and an opportunity for administrative review under subpart F, the agency need not duplicate such notice and review opportunities before reporting the delinquent debt to credit bureaus.
(d) Stay of disclosure.
Agencies shall not disclose a delinquent debt to a credit reporting agency if a debtor requests review under subpart F until a final determination is made by a reviewing official that upholds the agency intent to disclose.
(e) Commercial debt.
The requirement of this section does not apply to commercial debts, although agencies should report commercial debts to commercial credit bureaus.