Cross-Servicing is our program to deal with delinquent debt. By law, federal agencies must transfer delinquent debts to the Bureau of the Fiscal Service. When the agency transfers the debt to Fiscal Service, we have the legal responsibility to then deal with that debt: to collect it, work with the debtor to pay it, suspend or end collection.
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The Debt Collection Improvement Act of 1996 is the main Cross-Servicing legal authority, while Treasury Financial Manual (TFM) Chapter 4-4000 details the process followed. Chapter 4000 replaces all existing Letters of Agreement with federal agencies about collecting delinquent debt. Only select specific types of debt are excluded from transfer to Fiscal Service.
Debt submission must occur within a specific timeframe. If the agency does rely on Fiscal Service to submit the debt for administrative offset on the agency's behalf, it must be submitted before it is 120 days delinquent. If the agency does not rely on the Fiscal Service to submit the debt, it must be submitted before it is 180 days delinquent.
Last modified 11/29/18