Fund Administration

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Collection procedures required by the Debt Collection Improvement Act of 1996.

Informational Notice to All USAC Contributors and Debtors

Effective July 1, 2003, USAC implemented new collection procedures as required by the Debt Collection Improvement Act of 1996 (DCIA) and the Federal Communications Commission (FCC).

The DCIA requires, among other things, that federal agencies transfer delinquent debts or claims to the U.S. Department of Treasury ("Treasury") for further collection action. The FCC has determined that unpaid obligations to the Universal Service Fund are subject to the DCIA. USAC and the FCC are committed to collecting, on a timely basis, the outstanding obligations owed to the fund.

In the event that a balance becomes 30 days past due, the balance will be considered delinquent and USAC will communicate the delinquency and the ramifications of non-payment to the debtor. Every effort will be made by USAC personnel to work with the debtor to rectify the delinquency. After proper notice, USAC will transfer the delinquent debtor's debt and account history to the FCC for further collection and enforcement actions.

Upon transfer of the delinquent receivable, the FCC will assume collection responsibility and request payment from the delinquent debtor within 30 days after transfer. In addition, delinquent carriers may be subject to further enforcement actions by the FCC including, but not limited to, fines and forfeitures.

In the event that the debt payment is not received within 30 days after the FCC issues the debtor a request for payment, the FCC will transfer the debt to Treasury for further collection efforts.

In addition to late payment penalties, the FCC and Treasury have the authority to levy additional collection charges, penalties, and interest. A delinquent carrier will be responsible for all charges levied by USAC, the FCC, and Treasury, in their attempts to collect the outstanding balances.

Finally, debtors are required to pay balances owed to USAC upon receipt of an invoice. Even if debtors are awaiting a filing revision to take effect and/or awaiting a decision on an outstanding appeal, debtors are still obligated to pay the requisite balance due on all invoices on or before the invoice due date.


Last modified on 2/12/2008