DEBT COLLECTION ACT REMEDIES & ATTORNEY FEES
There have been a series of decisions recently highlighting those issues for which the Back Pay Act (BPA) remedies of interest and attorney fees do not apply. Few are any clearer than the Contract Board of Civilian Appeals (CBCA) decision ruling that BPA remedies are not available when a government agency reimburses an employee for a debt improperly collected under the Debt Collection Act (DCA). The employee in that case had been reimbursed by his agency for a debt it collected under procedurally incorrect rules. When he asked for interest on the reimbursement under the Back Pay Act, the CBCA traced the relationship between the DCA and BPA and concluded that the BPA does not apply when employees receive reimbursements on improperly collected debts to the agency. Consequently, none of the BPA remedies, such as interest or attorney fees, are available in those situations. (See In the Matter of JEFFREY E. KOONTZ, Civilian Board of Contract Appeals, No. 3436-TRAV (July 23, 2013)) Continue reading