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Debt Collection Legal Authorities Quick Reference Charts


Quick Reference: Cross-Servicing Program

DEBT COLLECTION
TOOL/ACTION
DESCRIPTION STATUTORY AUTHORITY REGULATORY AUTHORITY

Mandatory Transfer of Servicing to Treasury

All debts >180 delinquent must be sent to FMS 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

31 CFR Section 285.2
31 CFR Section 285.4
31 CFR Section 285.5
31 CFR Section 285.7

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Quick Reference: Treasury Offset Program

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)

26 CFR 301.6331-1

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
Creditor agency
regulations

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)

26 CFR 301.6331-1

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)

26 CFR 301.6331-1

15%
100% for certain vendor payments

State debts
(other than child support)

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%

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Quick Reference: Miscellaneous

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)

Assist Federal agencies in the management of accounts receivables by increasing collections on current receivables and reducing and more efficiently collecting debts that become delinquent

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

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Code of Federal Regulations
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