Debt Collection: Treasury Faces Challenges in Implementing Its Cross-Servicing Initiative

Pursuant to a congressional request, GAO discussed the Department of the Treasury's progress in implementing the cross-service provision of the Debt Collection Improvement Act (DCIA) of 1996, focusing on the: (1) status of nontax delinquent debts that federal agencies have referred to Treasury for cross-servicing and Treasury's actions to encourage these referrals; (2) Treasury's cross-servicing process for collecting referred debts; (3) Treasury's method for allocating debts to private collection agencies (PCA) for collection; and (4) Treasury's estimated cross-servicing costs and related fees earned on collections.