Litigation Referral

2018 Annual Governmentwide Federal Receivables 

Management Symposium

May 23 & 24, 2018

L E A D ∙ T R A N S F O R M ∙ D E L I V E R
Cross-Servicing Collection Tools

L E A D ∙ T R A N S F O R M ∙ D E L I V E R

 Demand letters and phone calls

 Referral to the Treasury Offset Program

 Reporting to Credit Bureaus

 Resolution of disputes

 Payment agreements, Administrative Wage Garnishment (AWG), and 

compromise agreements

 Referral to private collection agencies (PCAs)

 Administrative Resolutions

 Referral to the Department of Justice (DOJ)

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2018 Annual Governmentwide Federal Receivables Management Symposium
Benefits of DOJ Referral 

L E A D ∙ T R A N S F O R M ∙ D E L I V E R

 U.S. Attorney can file a lawsuit against the debtor

 Compulsory discovery procedures, under oath

 Financial examinations to locate assets

 Depositions of debtors and third-parties

 Court can enter a judgment ordering debtor to pay

 Judgments last forever

 Judgments appear on credit report

 Consent judgments - Debtor agrees to be held liable for some or all of 

the debt

 Liens can be obtained

 Collections! – In FY17, referred 622 debts valued at over $39 million, 

and DOJ collected nearly $1.3 million

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2018 Annual Governmentwide Federal Receivables Management Symposium
Debts Reviewed for DOJ Referral

L E A D ∙ T R A N S F O R M ∙ D E L I V E R

 Debt Management Services (DMS) Automated Criteria 

 Creditor agency permits DMS to refer its debts to DOJ 

(designated in the agency’s program profile)

 Debt balance >$2,500 

 More than 8 months before statute of limitations expires 

 No pending or active payment agreement, AWG, dispute, 

Administrative Resolution

 Debt returned from 2nd PCA

 DMS/PCA collectors recommend litigation

 Creditor agencies request review of specific debts

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2018 Annual Governmentwide Federal Receivables Management Symposium
Factors Considered for DOJ Referral

L E A D ∙ T R A N S F O R M ∙ D E L I V E R

 Can debt be collected efficiently through administrative remedies?

 Valid address for debtor?

 Does the debtor have assets/ability to pay?

 DMS pulls credit reports, uses commercial databases, and 

reviews information available on the Internet.

 Does DMS have sufficient documentation from the creditor agency for 

DOJ to establish a case?

 Taxpayer ID for debtor?

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2018 Annual Governmentwide Federal Receivables Management Symposium
Documentation Sent to DOJ

L E A D ∙ T R A N S F O R M ∙ D E L I V E R

 Claims Collection Litigation Report (CCLR) - provides information 

about the debtor, debt, basis of the debt, and collection efforts by the 

creditor agency, DMS, and PCAs.

 Credit report

 Information on assets, such as real estate, income, and personal 

property

 Secretary of State information

 Any correspondence to/from debtor

 Proof of debt (POD) documentation 

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2018 Annual Governmentwide Federal Receivables Management Symposium
How Creditor Agencies Can Help

L E A D ∙ T R A N S F O R M ∙ D E L I V E R

 Provide complete documentation

 Timely responses to requests for documentation and compromise 

approval

 Be available to participate in conference calls with DOJ

 Have live witnesses available, when required

 If contacted directly by DOJ for anything other than POD, refer them 

to Treasury

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2018 Annual Governmentwide Federal Receivables Management Symposium