45 CFR § 2506.13 - How will the Corporation contract for private collection services?

---
identifier: "/us/cfr/t45/s2506.13"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "45 CFR § 2506.13 - How will the Corporation contract for private collection services?"
title_number: 45
title_name: "Public Welfare"
section_number: "2506.13"
section_name: "How will the Corporation contract for private collection services?"
chapter_name: "CORPORATION FOR NATIONAL AND COMMUNITY SERVICE"
part_number: "2506"
part_name: "COLLECTION OF DEBTS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 5514; 31 U.S.C. 3701-3720A, 3720D; 44 U.S.C. 2104(a)."
regulatory_source: "68 FR 16438, Apr. 4, 2003, unless otherwise noted."
cfr_part: "2506"
---


# 2506.13 How will the Corporation contract for private collection services?

The Corporation uses the services of a private collection contractor when it determines that such use is in the Corporation's best interest. When the Corporation determines that there is a need to contract for private collection services, the Corporation:

(a) Retains sole authority to:

(1) Resolve any dispute with the debtor regarding the validity of the debt;

(2) Compromise the debt;

(3) Suspend or terminate collection action;

(4) Refer the debt to the DOJ for litigation; and

(5) Take any other action under this part;

(b) Requires the contractor to comply with the:

(1) Privacy Act of 1974, as amended, to the extent specified in 5 U.S.C. 552a(m);

(2) Fair Debt Collection Practices Act (15 U.S.C. 1692-1692o); and

(3) Other applicable Federal and State laws pertaining to debt collection practices and applicable regulations of the Corporation in this part;

(c) Requires the contractor to account accurately and fully for all amounts collected; and

(d) Requires the contractor to provide to the Corporation, upon request, all data and reports contained in its files related to its collection actions on a debt.