Cross-Servicing is the process whereby federal agencies refer delinquent debts to Treasury for collection. The Debt Collection Improvement Act of 1996 (DCIA) makes Treasury responsible for collecting delinquent debts Government wide and generally requires Federal agencies to transfer any nontax debt delinquent over 180 days to Treasury's Debt Management Services (DMS) for debt collection services.
After transfer, DMS must take appropriate action to service, collect, compromise, or suspend or terminate collection action on the debt (commonly referred to as "Cross-Servicing"). DMS strongly encourages creditor agencies to transfer all eligible delinquent debts for debt collection services before they are delinquent 180 days. Creditor agencies are strongly encouraged to use all available debt collection tools.
FMS has been providing delinquent debt collection services to Federal agencies since the enactment of the DCIA in 1996. After passage of the DCIA, Treasury/DMS and Federal agencies entered into Letters of Agreement describing their respective roles and responsibilities.
Treasury Financial Manual (TFM) Chapter 4-4000, Debt Management Services Collection of Delinquent Nontax Debt, was published in October 2011. The TFM chapter replaces and supersedes all existing Letters of Agreement. To the extent that this TFM chapter changes current processes, DMS will work with each Federal agency to implement the provisions of this TFM chapter.
Federal agencies should contact the Cross-Servicing Agency Liaisons at (800) 858-0725 for more information regarding Cross-Servicing and the FedDebt application including assistance with referrals, Agency Profile Form updates and FedDebt report questions. Agencies who may receive questions from debtors should direct them to contact DMS toll free at (888) 826-3127 to speak with one of our representatives.
Related Topics & Helpful Links
Managing Federal Receivables: a general overview of standards, guidelines, and procedures for the successful management of Federal activities ranging from the extension of credit or financial assistance to closing-out uncollectible debts.
Debt Collection Authorities: Public laws, statutes and other authorities related to the collection of delinquent debts owed to the government.
Frequently Asked Questions: Cross-Servicing
Frequent Asked Questions: FedDebt