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DMS assists federal agencies in preventing receivables related to improper payments through the Do Not Pay (DNP) Business Center, collecting and resolving current receivables through the Centralized Receivables Service (CRS), and collecting and resolving delinquent federal debts through the Treasury Offset Program (TOP) and Cross-Servicing.
Debt collection programs. The DCIA requires federal agencies to refer delinquent non-tax debts to Fiscal Service for collection by offset of non-tax payments. Non-tax payments include vendor, federal retirement, federal salary, and Social Security benefits.
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- Overview
- Part II, Debt Collection Tools and Programs, discusses
- Part III, Miscellaneous Topics, describes several techniques an
- Governmentwide Debt Collection Guidance. Fiscal Service has
- Key Debt Collection Principles
- Program Goals and Debt Collection. Delinquent debts arise from
- Minimum Due Process Requirements
- Determining the Appropriate Collection Technique to Use
- TECHNIQUES
- Collection Action Documentation
- Agency Workout Groups
- Contact With the Debtor
- COLA Alternative to Assessment of Late Charges. In limited
- Installment Payments
- Appendix 8.
- Acceleration
- Rescheduling
- Compromise
- Taking Action Against Co-borrowers/Guarantors
- Application of Payments
- Part II – Debt Collection Tools and Programs
- How TOP Works
- Debts Eligible for TOP. A debt is eligible for referral to TOP if
- Payments Exempt from Offset Under TOP. Federal law prohibits
- Special Provisions for Certain Recurring Payments. For certain
- Non-Centralized Administrative Offset
- Types of Non-Centralized Administrative Offset
- Private Collection Agencies
- Requirements for Agency Use of Administrative Wage Garnishment. Generally, an agency should use the services of
- Termination of the Wage Garnishment Order. The agency
- Liquidating Collateral
- Bankruptcy
- Barring Delinquent Debtors from Obtaining Federal Loans, Guaranties and Loan Insurance
- Revoking/Suspending Licenses or Eligibility
- Purchasing Credit Reports and Locating the Debtor
- Reviewing Credit Report and Other Financial Information. An
- Department of Motor Vehicles. The Department of Motor
- Automated Collection Services
Agencies should have fair but aggressive programs to recover delinquent debt, including defaulted guaranteed loans acquired by the Federal Government. Each program should include a debt collection strategy, consistent with governmentwide and agency requirements, to restore the delinquent debts to current status or, if unsuccessful, maximize collect...
delinquent debt collection tools, such as cross-servicing (transfer of debts to Bureau of the Fiscal Service (Fiscal Service) for collection), offset, administrative wage garnishment, collateral liquidation, and litigation; and
agency uses to support the debt collection process. This Chapter applies to debts owed to the United States, including loans, fines, penalties, overpayments, and fees, but does not apply to the collection of Federal tax debts, debts owed by Federal agencies, or debts owed by foreign countries. Debts based in whole or in part on conduct in violation...
issued this document and other debt collection guidance, such as the “Guide to the Federal Credit Bureau Program” and the “Treatise on Federal Nontax Debt Collection Law.” Debt collection statutes, regulations, and guidance are found at the Fiscal Service website at https://fiscal.treasury.gov/debt-management/legal-authorities/debt-collection-autho...
Federal agency personnel who collect debts for the government should understand the following key principles: Agency Regulations. Regulations are rules and procedures governing an agency’s programs or administrative processes. In many cases, an agency is required to publish rules and procedures in the Federal Register. After publication in the Fede...
various Federal Government programs and actions. For some types of debts, the government’s interests may be best served by resolving debts in a way that achieves an important goal of a specific program. For example, it may be in the government’s best interest to lower a debtor’s monthly payments to allow a debtor to remain in his or her own home, k...
Additional details on due process requirements are discussed later in this Chapter. Privacy Protections. Many of the debt collection tools discussed in this Chapter require disclosure of personal information concerning debtors to individuals and entities outside the creditor agency. For example, disclosures of information about debtors might be m...
Administrative Installment Wage Rescheduling Payments Garnishment Compromise Acceleration Late Charges Barring Delinquent Debtors Litigation
Revocation Liquidating Collateral Credit Bureau Reporting Agency Workout Group Cross-servicing Treasury Offset Non-centralized Offset including Internal Private Collection Agencies Program Offset Key factors to consider when determining the technique or tool to use include: whether the agency is required by law to use the debt collection tool; the ...
During the debt collection phase of the credit cycle, the agency will build upon the documentation created during its credit extension and account servicing activities. It is essential that the agency continue to document all agency contacts with a debtor and actions taken to enforce collection in order to protect the government's interests. Docume...
Agency workout groups are established for the sole purpose of resolving troubled debts, primarily loans. As such, agency workout groups should have the authority to decide on appropriate actions necessary to maximize debt recovery, including rescheduling debt. Strategies developed by workout groups should be case specific; however, the workout grou...
Contact with the debtor is critical because contact: provides the debtor with notification of the existence of the debt and the amount of the debt if the debtor is otherwise unaware (for example, a beneficiary receives a benefit payment for more than the amount statutorily authorized, or a person is liable to the Federal Government for property dam...
circumstances, an agency may increase an administrative debt by the cost of living adjustment (COLA) in lieu of charging interest, penalties, and administrative costs. The COLA alternative can be used only when: (1) the debt is an administrative debt (e.g., a fine, penalty, fee or overpayment), not a loan or debt arising from a loan guaranty; and (...
Whenever possible, an agency should try to collect an overdue debt in a single lump sum. In the event that the debtor claims financial inability to repay the debt in a single lump sum, the agency may consider collecting the overdue debt in installments. Before using certain collection remedies, such as offset and administrative wage garnishment, an...
Prior to entering into an installment agreement, an agency should obtain a financial statement or credit report to verify the debtor's claim of inability to repay in a lump sum. See Appendix 9 for a sample financial statement. Additionally, an agency should enter into such agreements only when there is evidence the debtor has (1) a willingness to a...
Acceleration of a debt occurs when an agency calls the full amount of the debt due and payable. When a debt is accelerated, the agency demands that the debtor pay the entire debt (both the delinquent and non-delinquent portions of the debt), and considers the total amount of the debt delinquent. The agency should delineate circumstances in which ac...
Rescheduling signifies a change in the existing terms of a loan. An agency should consider rescheduling a debt when it has determined that the rescheduling is in the government's interests and that recovery of all or a portion of the debt is reasonably assured. As with installment payments, before rescheduling a debt, the agency should reassess the...
An agency compromises a debt whenever it accepts less than the full amount of the outstanding debt in full satisfaction of the entire amount. compromise may be considered (but is not required) when one or more of the following criteria apply: the debtor is unable to pay the debt within a reasonable time period, as verified through credit reports or...
An agency should take action to recover a debt from secondary debtors (co-borrowers or guarantors) when it becomes apparent that the primary debtor cannot or will not repay a debt. The agency should employ the same debt collection techniques and tools in pursuing secondary debtors as it uses for primary debtors. To successfully pursue secondary deb...
Except as otherwise contractually provided, payments made by a debtor towards a delinquent debt are applied to the outstanding balance of the debt in the following order: penalties; administrative costs; additional interest; financing interest; and principal. If the debt is being collected by Fiscal Service through cross-servicing or TOP, or if a p...
One of the major purposes of the DCIA is to “maximize collections of delinquent debts owed to the government by ensuring quick action to enforce recovery of debts and the use of all appropriate collection tools.” An agency is required to aggressively collect all debts arising out of the agency’s activities. If a debtor fails to pay or otherwise res...
TOP allows agencies to submit debts to one centralized location for offset of all eligible Federal and state payments. Creditor agencies submit information about delinquent debts to Fiscal Service, which maintains the information in its delinquent debtor database. Federal payment agencies prepare and certify payment vouchers to Fiscal Service and o...
the debt is delinquent and legally enforceable. A debt is considered legally enforceable for TOP purposes if there has been a final agency determination that the debt is due and there are no legal bars to collection through the offset of Federal payments.
the offset of certain types of Federal payments. Additionally, Treasury has granted requests by Federal payment agencies to exempt from TOP other types of payments. A complete list of payments that are exempt from offset under TOP is available on the Fiscal Service website at https://fiscal.treasury.gov/debt-management/resources/guides-forms-downlo...
types of Federal recurring payments, such as monthly retirement or social security benefit payments, TOP sends the debtor at least one warning notice before the offset occurs. The debtor is advised to contact the creditor agency to resolve the debt or to discuss alternatives to offset. An agency should be prepared to respond promptly to a debtor’s ...
In cases where offset through TOP is not available or appropriate, an agency may request that another agency offset a Federal payment to satisfy a debt. This type of ad hoc case-by-case offset is known as “non-centralized administrative offset.” Another type of non-centralized administrative offset occurs when the payment agency is the same as the ...
Automated collection services provide an agency with a means to: immediately contact a delinquent debtor by telephone after a payment due date has passed without payment; set collection priorities; document contacts with a debtor and/or the results of any collection actions taken; generate management reports; and track an individual collector's per...
Automated collection services provide an agency with a means to: immediately contact a delinquent debtor by telephone after a payment due date has passed without payment; set collection priorities; document contacts with a debtor and/or the results of any collection actions taken; generate management reports; and track an individual collector's per...
Automated collection services provide an agency with a means to: immediately contact a delinquent debtor by telephone after a payment due date has passed without payment; set collection priorities; document contacts with a debtor and/or the results of any collection actions taken; generate management reports; and track an individual collector's per...
Automated collection services provide an agency with a means to: immediately contact a delinquent debtor by telephone after a payment due date has passed without payment; set collection priorities; document contacts with a debtor and/or the results of any collection actions taken; generate management reports; and track an individual collector's per...
Automated collection services provide an agency with a means to: immediately contact a delinquent debtor by telephone after a payment due date has passed without payment; set collection priorities; document contacts with a debtor and/or the results of any collection actions taken; generate management reports; and track an individual collector's per...
Automated collection services provide an agency with a means to: immediately contact a delinquent debtor by telephone after a payment due date has passed without payment; set collection priorities; document contacts with a debtor and/or the results of any collection actions taken; generate management reports; and track an individual collector's per...
Automated collection services provide an agency with a means to: immediately contact a delinquent debtor by telephone after a payment due date has passed without payment; set collection priorities; document contacts with a debtor and/or the results of any collection actions taken; generate management reports; and track an individual collector's per...
Automated collection services provide an agency with a means to: immediately contact a delinquent debtor by telephone after a payment due date has passed without payment; set collection priorities; document contacts with a debtor and/or the results of any collection actions taken; generate management reports; and track an individual collector's per...
Automated collection services provide an agency with a means to: immediately contact a delinquent debtor by telephone after a payment due date has passed without payment; set collection priorities; document contacts with a debtor and/or the results of any collection actions taken; generate management reports; and track an individual collector's per...
Automated collection services provide an agency with a means to: immediately contact a delinquent debtor by telephone after a payment due date has passed without payment; set collection priorities; document contacts with a debtor and/or the results of any collection actions taken; generate management reports; and track an individual collector's per...
Automated collection services provide an agency with a means to: immediately contact a delinquent debtor by telephone after a payment due date has passed without payment; set collection priorities; document contacts with a debtor and/or the results of any collection actions taken; generate management reports; and track an individual collector's per...
Automated collection services provide an agency with a means to: immediately contact a delinquent debtor by telephone after a payment due date has passed without payment; set collection priorities; document contacts with a debtor and/or the results of any collection actions taken; generate management reports; and track an individual collector's per...
Jul 14, 2023 · Debt Management in the Bureau of the Fiscal Service helps federal agencies. avoid paying those who should not be paid, collect nontax debt, withhold (offset) money from certain federal and state payments to satisfy delinquent debt. Debt Collection has four main program areas.
The Cross-Servicing program is a Fiscal Service program managed by its Debt Management Services (DMS) area. It provides collection services on delinquent debt owed to federal agencies.
delinquent debts for debt collection services before 121 days of delinquency. As part of the Cross-Servicing program, DDM must take appropriate action to 1) service, 2) collect, 3) compromise, or 4) suspend or terminate collection action on the debt. What tools does Cross-Servicing use? The Cross-Servicing Program uses a variety of tools to ...
People also ask
What is debt management services?
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Can a private collection agency recover a delinquent debt?
Can a delinquent debtor be eligible for loan assistance?
A debt management plan is a voluntary agreement between a consumer and the credit counseling agency whereby the consumer deposits funds to the agency and the agency then pays creditors on behalf of that consumer.
