Skip Navigation
Official website of the United States Government We can do this. Find COVID-19 vaccines near you. Visit Vaccines.gov. U.S. Department of the Treasury
Bureau of the Fiscal Service Home
Debt Management
Rule Book

About the Debt Collection Improvement Act

The Debt Collection Improvement Act of 1996, or the DCIA (Public Law 104-134) tasked Treasury with some governmentwide debt collection responsibilities.

Among other things, the law provides that delinquent non-tax debts must be turned over to the Treasury for appropriate action to collect the debt.

Purposes of the DCIA

Deposit

To increase 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.

Lower

To lower the costs of debt collection by consolidating related functions and activities and using interagency teams.

Search

To cut losses arising from debt management activities by requiring proper screening of potential borrowers, aggressive monitoring of all accounts, and sharing of information in and among Federal agencies.

Lightbulb

To ensure that the public is fully informed of the Federal Government's debt collection policies and that debtors are aware of their obligations to repay amounts owed to the Federal Government.

Caution

To ensure that debtors have all due process rights, including the ability to verify, challenge, and compromise claims, and access to administrative appeals procedures which are both reasonable and protect the interests of the United States.

Pay Cash

To encourage agencies to sell delinquent debt, particularly debts with underlying collateral.

Transfer

To rely on the experience and knowledge of private sector professionals to provide debt collection services to federal agencies.

Key Provisions of the DCIA

  • Enhanced offset authority
  • Required collection of taxpayer identifying numbers
  • Barring delinquent debtors from getting federal financial assistance
  • Required credit bureau reporting
  • Debt sales
  • Government-wide Cross-Servicing
  • Administrative wage garnishment

For more information about the DCIA, see the FAQs About DCIA page and read Congressman Horn’s Comments on the DCIA (April 25, 1996).

Looking for Legal Authorities?

For laws, regulations, and guidance related to debt management programs, see

Last modified 09/05/24