Debt Collection Legal Authorities Quick Reference Charts
Quick Reference: Cross-Servicing Program
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| DEBT COLLECTION TOOL/ACTION |
DESCRIPTION | STATUTORY AUTHORITY | REGULATORY AUTHORITY |
|---|---|---|---|
| Mandatory Transfer of Servicing to Treasury | All debts >180 delinquent must be sent to Fiscal Service unless exempted | 31 U.S.C. 3711(g)(1) | 31 CFR Section 285.12 31 CFR 901.1(e) I TFM 4-4000 |
| Administrative Wage Garnishment (AWG) |
Garnish up to 15% of non-federal wages without a court order | 31 U.S.C. 3720D | 31 CFR Section 285.11 |
| Credit Bureau Reporting | Report delinquent debts to the major credit bureaus | 31 U.S.C. 3711(e) | 31 CFR 901.5 |
| Referral to Private Collection Agencies (PCAs) | Refer debts to contractors for collection action | 31 U.S.C. 3718 (PCAs must comply with consumer protection laws) |
N/A |
| Referral to the Department of Justice | Refer debts for litigation or for compromise, suspension or termination of large-dollar debts | 31 U.S.C. 3711 | 904 Referrals to the Department of Justice |
| Treasury Offset Program | Collect debts by offset of federal and state payments | 31 U.S.C. 3716 31 U.S.C. 3720A 26 U.S.C. 6402 5 U.S.C. 5514 |
31 CFR Section 285.2 31 CFR Section 285.4 31 CFR Section 285.5 31 CFR Section 285.7 |
Quick Reference: Treasury Offset Program
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| PAYMENT OFFSET OR LEVIED |
DEBT COLLECTED | STATUTORY AUTHORITY |
REGULATORY AUTHORITY |
AMOUNT DEDUCTED |
|---|---|---|---|---|
| Federal tax refund | Federal non-tax debts | 26 U.S.C. 6402(d) 31 U.S.C. 3720A |
31 CFR Section 285.2 Creditor agency regulations |
100% |
| Child support debts | 26 U.S.C. 6402(c) 42 U.S.C. 664 |
31 CFR Section 285.3 45 CFR 303.72 HHS procedures |
||
| State income tax debts | 26 U.S.C. 6402(e) | 31 CFR Section 285.8 | ||
| State unemployment compensation debts | 26 U.S.C. 6402(f) | |||
| Social Security; Black Lung; Railroad Retirement (benefit payments; may not be offset for child support or other State debts) |
Federal non-tax debts | 31 U.S.C. 3716 | 31 CFR Section 285.4 | Lesser of 15% or amount over $750.00 |
| Federal tax debts (levy) | 26 U.S.C. 6331(h) | N/A | 15% | |
| Federal salary | Federal non-tax debts | 5 U.S.C. 5514 31 U.S.C. 3716 |
5 CFR 550.1101 31 CFR Section 285.7 |
15% |
| Child support debts | 31 U.S.C. 3716(h) | 31 CFR Section 285.1 State law & regulations HHS procedures |
50%-65% | |
| Federal tax debts (levy) | 26 U.S.C. 6331(h) | N/A | 15% | |
| Federal non-tax non-salary non-benefit (includes civil service retirement, travel, vendor, etc.) |
Federal non-tax debts | 31 U.S.C. 3716 | Federal Claims Collection Standards (31 CFR Parts 900-904) 31 CFR Section 285.5 Creditor agency regulations |
100%, except as otherwise provided by law (25% for retirement) |
| Child support debts | 31 U.S.C. 3716(h) | 31 CFR Section 285.1 State law & regulations HHS procedures Exec. Order 13019 |
||
| Federal tax debts (levy) | 26 U.S.C. 6331(h) | N/A | 15% 100% for certain vendor payments |
|
| State debts | 31 U.S.C. 3716(h) | 31 CFR Section 285.6 | 100%, except as otherwise provided by law |
|
| State payments (tax refunds, vendor, etc.) |
Federal non-tax debts | State statutes | State regulations 31 CFR Section 285.6 |
100% |
Quick Reference: Miscellaneous
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| TREASURY TOOL/ACTION |
DESCRIPTION | STATUTORY AUTHORITY | REGULATORY AUTHORITY |
|---|---|---|---|
| Barring Delinquent Debtors | Prevent delinquent debtors from receiving federal loans, loan insurance or loan guarantees | 31 U.S.C. 3720B | 31 CFR 285.13 31 CFR 901.6 |
| Centralized Receivables Service (CRS) | Provide collection services from billing through either collection or completion of due process | 31 U.S.C. 3711(g) | N/A |
| Unclaimed Assets | Locate and recover unclaimed federal financial assets | 31 U.S.C. 3718 31 U.S.C. 321 |
I TFM 6-5100 |
| Publishing Debtors' Identities | Issue regulations to allow agencies to publish debtor identities | 31 U.S.C. 3720E | N/A |
| Debt Sales | Sell nontax debts to the private sector | 31 U.S.C. 3711(h) | OMB Circular A-11 |