October 17, 2003

In the Matter of the Petition by

MARY C. CHAMBERS

5 Alvin Road

at

Somerville, TN 38068-6260

P.S. Docket No. DCA 03-317

APPEARANCE FOR PETITIONER:

Mary C. Chambers

5 Alvin Road

Somerville, TN  38068-6260

APPEARANCE FOR RESPONDENT:

Joseph E. Pegues, Jr.

Labor Relations Representative

United States Postal Service

555 S. Third Street, Room 327

Memphis, TN 38101-9401

DISMISSAL

            In this matter, Respondent is withholding funds from Petitioner’s pay in response to an “Order of Withholding” issued by Educational Debt Services, Inc., on behalf of United Student Aid Funds, Inc., pursuant to 20 U.S.C. §1095a.  The Order of Withholding directs Respondent to deduct from Petitioner’s pay “an amount not to exceed ten percent (10%) of the debtor’s disposable pay for each pay period, or the amount permitted by 15 U.S.C. 1673 ….”

            Petitioner has requested a Debt Collection Act hearing on two grounds.  First, Petitioner alleges that she was not given the notice that the Employee and Labor Relations Manual (ELM) requires be given prior to the involuntary collection of a debt.  Second, Petitioner alleges that Respondent is withholding more than ten percent of her disposable pay.

            Respondent takes the position that the alleged debt is not owed to the Postal Service.  Therefore, Respondent contends that Petitioner was not entitled to the notice specified in the ELM and is not entitled to a hearing by the Postal Service under the Debt Collection Act.  Respondent asks that the Petition be dismissed.

            Based on the material submitted by the parties, Respondent is correct in arguing that the debt at issue here is not a debt owed to the Postal Service.  Therefore, neither Debt Collection Act, 5 U.S.C. §5514, nor the specific procedural provisions of the ELM related to the involuntary collection of Postal debts apply.  Under these circumstances, this office lacks the authority to hold the hearing requested by Petitioner.

            Accordingly, the Petition is dismissed for lack of jurisdiction.

                                                                                    David I. Brochstein

                                                                                    Administrative Judge