(rev. October 12, 2016)

FACT SHEET

Cross-Servicing Program

ABOUT FISCAL SERVICE 

AND DEBT MANAGEMENT 

SERVICES

The U.S. Department of the Treasury’s 

Bureau of the Fiscal Service assists federal 

agencies with the prevention, collection and 

resolution of debts owed to government 

agencies. Additionally, we provide debt 

collection services to the states. Debt 

Management Services (DMS) is the business 

area responsible for administering programs 

and services related to improper payments, 

receivables management and delinquent debt 

collection.

What is CrossServicing?

Cross-Servicing is a consolidated 

government-wide program operated by 

Treasury's Debt Management Services 

(DMS) that fulfills the requirement of 

The Debt Collection Improvement Act 

of 1996 (DCIA) to collect delinquent, 

non-tax debt on behalf of federal 

agencies. As required by the DCIA, an 

agency must refer any eligible debt 

more than 180 days delinquent to 

Fiscal Service for cross-servicing.

As part of the Cross-Servicing program, 

DMS must take appropriate action to 

service, collect, compromise, or 

suspend or terminate collection action 

on the debt. DMS strongly encourages 

creditor agencies (agencies to whom 

debt is owed) to transfer all eligible 

delinquent debts for debt collection 

services before they are delinquent 180 

days. Agencies are strongly 

encouraged to use all available debt 

collection tools.

Fiscal Service has been providing 

delinquent debt collection services to 

federal agencies since the enactment 

of the DCIA in 1996. After passage of 

the DCIA, Treasury/DMS and federal 

agencies entered into Letters of 

Agreement describing their respective 

roles and responsibilities.

Treasury Financial Manual (TFM) 

Chapter 4-4000, Debt Management 

Services Collection of Delinquent 

Nontax Debt, was published in October 

2011. The TFM chapter replaces and 

supersedes all existing Letters of 

Agreement. To the extent that this TFM 

chapter changes current processes, 

DMS will work with each federal agency 

to implement the provisions of this TFM 

chapter.

What debt collection 

tools does CrossServicing use?

The Cross-Servicing Program uses a 

variety of tools to collect delinquent 

debts.

Administrative Wage Garnishment 

(AWG) – AWG is a debt collection 

process that allows a federal agency to 

order a non-federal employer to 

withhold up to 15 percent of an 

employee's disposable income to pay a 

nontax delinquent debt owed to the 

agency.

Private Collection Agencies (PCAs) –

PCAs are private sector companies 

specializing in the collection of 

delinquent debt. Treasury maintains a 

schedule of PCAs who assist the 

government in its debt collection efforts, 

and whose activities are monitored by 

DMS.

Litigation by Department of Justice 

(DOJ) – Delinquent debts may be 

referred to DOJ for enforcement through 

litigation, including post-judgment 

enforcement.

Demand Letters – Generated shortly 

after an account is referred for CrossServicing.

Phone Calls – DMS may begin making 

phone calls within 10 days of the 

issuance of the demand letter.

Skip Tracing – For locating current 

debtor information including phone 

numbers, addresses, notice of death, 

bankruptcies, etc.

Payment Agreements – Both DMS 

and the PCAs make every attempt to 

collect debts in full, in a single 

payment.

A payment agreement, which 

requires justification and supporting 

documentation, can be a lump sum, 

installment, partial payment or 

compromise agreement

Other tools Cross-Serving uses for 

collecting debt include:

 Administrative Resolution

 Treasury Offset Program

 Credit Bureau Reporting

 IRS Form 1099-C Reporting

http://fiscal.treasury.gov/cs