Is there an alternative to charging interest and penalties on delinquent administrative (i.e., non-credit) debt?
Yes. The DCIA allows for increasing an administrative claim by the cost of living adjustment in lieu of charging interest and penalties. This adjustment must be computed annually. It is figured by taking the difference between the Consumer Price Index in June of the year before the adjustment [CPI-1] and comparing it to the Consumer Price Index in June of the calendar year in which the claim was first determined or last adjusted, as the case may be [CPI-2]. The cost of living adjustment becomes the percentage that CPI-1 exceeds CPI-2. This alternative is only applicable to all debt that is not based on extension of Government credit through loans, guarantees, or insurance. Examples of debts where this alternative is applicable are fines, penalties, and overpayments. • May an agency increase its civil monetary penalties for inflation?
Yes. The DCIA allows for increasing an administrative claim by the cost of living adjustment in lieu of charging interest and penalties. This adjustment must be computed annually. It is figured by taking the difference between the Consumer Price Index in June of the year before the adjustment [CPI-1] and comparing it to the Consumer Price Index in June of the calendar year in which the claim was first determined or last adjusted, as the case may be [CPI-2]. The cost of living adjustment becomes the percentage that CPI-1 exceeds CPI-2. This alternative is only applicable to all debt that is not based on extension of Government credit through loans, guarantees, or insurance. Examples of debts where this alternative is applicable are fines, penalties, and overpayments. • May an agency increase its civil monetary penalties for inflation? An agency must by regulation adjust for inflation its civil monetary penalties 180 days after the date of enactment of the DCIA (due by 10/23/96) and at l
