Direct Collections involve payment by which method?

• A. It involves withholding from servicemembers' normal pay.
• B. It involves payment by cash or cashier's check.
• C. It is processed through payroll deduction on a monthly basis.
• D. It can be waived for first-time overpayments.

Answer: (B)

Direct Collections involve payments made directly by the individual, rather than through payroll withholdings. The method used is cash or a cashier’s check, which means the debtor personally provides the funds or sends a secured check to settle the obligation outside the payroll system. This contrasts with payroll deduction, where the amount is automatically withheld from pay, and it also isn’t about waiving overpayments. Using cash or a cashier’s check ensures the payment is immediate and traceable, aligning with the direct collection process.