Government Collections and What a Government Contract Can Mean for Your Collections Agency

According to ACA International’s website, the U.S. Government obtains the help of private collection agencies to collect on non-tax debts that are owed to the Federal Government.  The agencies that use PCAs for collections purposes include the U.S. Department of Education, the Department of Health and Human Services and Department of Treasury’s Bureau of Financial Management Service. 

According to the site, “in fiscal year 2010, PCAs under contract with the departments of Education, HHS and Treasury had referrals of $35.9 billion in delinquent federal debt. PCAs collected $777 million in FY 2010.” (Source: Department of Treasury Fiscal Year 2010 Report to the Congress—U.S. Government Receivables and Debt Collection Activities of Federal Agencies)

The government seeks private collections agencies and collections attorneys to assist with its debt collection and aid in establishing repayment agreements with debtors.  The government also hires private collections agencies and collections attorneys to help determine whether a debtor is deceased, disabled, bankrupt, or out of business.  In addition to the Federal Government, state governments also use private collections agencies to collect on delinquent taxes and other debts owed to the state.