Government Can Be More Productive in Collecting Its Debts by Following Commercial Practices

GAO was requested to study government debt collection practices and compared them with the methods used by commercial firms. This issue is becoming critical because of the rapidly rising number of debts owed to the government, now increasing at a rate of 21 percent annually. Debts include student loans, overpayments of supplemental security income benefits and veterans educational assistance, royalties, and payments for various goods and services. While most of these obligations will be paid routinely, many will require collection action and a considerable portion will be written off as uncollectible.