How does the U.S.Treasury (Cross-Servicing) manage referred debt?
Federal Debt System: The Federal Debt System is used by the U.S. Treasury (Cross-Servicing) to manage cases of referred debt. The Federal Debt System maintains information about the debtors, referred debts, and actions being taken by the U.S. Treasury (Cross-Servicing) to facilitate the collection.
U.S. Treasury adds a fee to debt based on its age. The debtor is responsible for the U.S. Treasury fees. The U.S. Treasury (Cross- Servicing) fee schedule for debt collection services includes:
1. Treasury Offset Program (TOP) - $17 per offset collection transaction.
2. Treasury’s private collection agency (PCA) and debt less than 2 years delinquent - 28% of the total payment received after the referral.
3. Treasury’s PCA and debt 2 years and greater delinquent - 30% of the total payment received after the referral.
4. Treasury and Department of Justice (DoJ) - 3% DoJ fee plus 28% or 30% Treasury fee of the payment received after the referral.