TABLE OF CONTENTS

PREFACE

CHAPTER 1

INTRODUCTION

Purpose of Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1

Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3

Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-4

Distinction between Commercial and Consumer Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-6

When to Report Debts to Credit Reporting Agencies (Reporting Cycle) . . . . . . . . . . . . . . . . . . . . . . . . . 1-6

Credit Extension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-7

Account Servicing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-7

Debt Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-8

Write-Off and Close-Out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-8

"Individual Service Agreements" and Memoranda of Understanding (MOUs) . . . . . . . . . . . . . . . . . . . . 1-9

Obtaining Credit Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-10

Credit Bureau Reporting Made Easy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-12

Special Rules/Laws Applicable for Reporting Debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-13

CHAPTER 2

REPORTING CONSUMER ACCOUNT INFORMATION

Reporting Consumer Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1

Special Rules for Reporting Consumer Account Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1

Legal Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-2

60-Day Notice of Intent to Report to Credit Bureau . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-3

Handling Disputed Information in Consumer Debtor Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5

Summary of Procedures Disputing Accuracy of a Credit Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-7

Procedures to be used When Debt Goes from "Current" to "Delinquent" Status . . . . . . . . . . . . . . . . . . . 2-8

Reporting Debts Being Collected by FMS' Debt Management Service (DMS) . . . . . . . . . . . . . . . . . . . . 2-9

General Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-10

Use of the Metro 2 Format for Referring Information to Credit Reporting Agencies . . . . . . . . . . . . . . . 2-12

Reporting Consumer Account Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-13

Federal Agency Identifiers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-14

Important Debtor Identification Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-14

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-17

CHAPTER 3

REPORTING COMMERCIAL ACCOUNT INFORMATION

Reporting Commercial Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1

General Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1

Reporting Debts Being Collected by FMS' Debt Management Service (DMS) . . . . . . . . . . . . . . . . . . . . 3-3

Handling Disputed Information in Commercial Debtor Files . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-4

Commercial Account Data Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-4

Identification Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-4

Debt Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-5
TABLE OF CONTENTS

Current Activity Elements (Status Codes) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-6

Agency Identification Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-10

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-11

Automated Reporting Format for Commercial Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-12

Comments & Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-14

Current Activity Status Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-15

Frequency of Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-16

Type of Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-16

APPENDICES

Appendix 1 - Section 3711(e) of Title 31, United States Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1

Appendix 2 - (Model) Memoranda of Understanding for Reporting of Consumer and Commercial Debts . . . . . A-5

Appendix 3 - Credit Reporting Agency Contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-23

Appendix 4 - Sample FMS Debt Management Cross-Servicing Implementation Agency Profile Form . . . . . . . A-25

Appendix 5 - Commonly Used Federal Agency Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-27


1-1

Chapter 1 Introduction

Purpose of Guidelines

These guidelines apply to ALL Federal Executive,

Legislative and Judicial agencies, including

Government corporations. The purpose of this document

is to provide guidance to Federal agencies for reporting

information on Federal debts (consumer and commercial)

to designated credit reporting agencies. The guidelines are

consistent with the Debt Collection Act of 1982 (DCA), as

amended by the Debt Collection Improvement Act of 1996

(DCIA), the revised Federal Claims Collection Standards

(31 CFR Parts 900-904) published November 22, 2000, the

revised Office of Management and Budget (OMB) Circular

No. A-129 published November 29, 2000, and the

Financial Management Service (FMS) publication

“Managing Federal Receivables” (revised May 2005). 

Relevant portions of the DCA and the DCIA are codified at

31 U.S.C. § 3711(e) (see Appendix 1) and 3720(B).

This document supersedes the previous “Guide to Federal

Credit Bureau Reporting” which was published in 1991.

This guide will be periodically updated to include new

information as it develops.

Since 1991, numerous changes have occurred, most

notably:

(a) The DCIA, enacted in 1996, requires agencies to report

to credit reporting agencies, information on all delinquent

consumer debts owed to the Federal Government;

(b) The DCIA authorizes agencies to report accounts in

good standing to credit reporting agencies. Reporting

accounts in good standing ensures that all relevant Federal

debtor data is integrated into the credit reporting agency

databases and is available for consideration when credit

decisions are made and prevents overextension of credit; 
Introduction

1-2

(c) The DCIA requires that lenders financing and/or

extending credit on behalf of the Federal Government be

required to provide information relating to the extension of

credit to consumer and commercial credit reporting

agencies. Submission of debtor information to designated

credit reporting agencies should be a routine and ongoing

part of Federal agencies and certified lenders account

servicing and debt collection procedures for both consumer

and commercial accounts;

(d) The revised Federal Claims Collection Standards,

published in November 2000 clarify and simplify Federal

debt collection procedures (and reflect changes under the

Debt Collection Improvement Act of 1996 and the General

Accounting Office Act of 1996); and

(e) The “Metro 2” format for reporting consumer debt,

developed by the credit reporting industry, is designed to

capture better data for debtor records within the credit

reporting agency databases. The Metro 2 format increases

the accuracy of debtor files which subsequently produces a

better credit report and provides additional features for the

report user. The format is the industry standard for

providers of information. See Chapter 2 for additional

information on the Metro 2 format.

The Financial Management Service (FMS) is available to

meet with Federal agencies to assist with the reporting

effort, including facilitation of the Memoranda of

Understanding (MOUs) between Federal agencies and the

designated credit reporting agencies receiving Federal

debtor data. “Model” consumer and commercial MOUs are

located at Appendix 2. The MOUs in Appendix 2 can

can be reproduced and used to enter into agreements

with the credit reporting agencies. Contacts for credit

reporting agencies and FMS are listed in Appendix 3. 
Introduction

1-3

In addition to this document, the following materials

provide guidance on reporting to credit reporting agencies:

C OMB Circular No. A-129 “Policies for

Federal Credit Programs and Non Tax

Receivables” (Revised);

C “Federal Claims Collection Standards”

(Revised) (See 31 C.F.R.§ 901.4); and,

C FMS Publication “Managing Federal

Receivables”(Revised May 2005).

Agencies should review Office of Management and Budget

(OMB) Circular No. A-129 for policies on the use of credit

reports for the purpose of screening and determining

creditworthiness of applicants for Federal financial

assistance or persons seeking to do business with the

Government. 

Background

The Debt Collection Act of 1982 gave agencies the

authority to report delinquent nontax, non-tariff consumer

debts to credit reporting agencies provided that Federal

agencies follow detailed procedures. 

The DCIA was enacted through the cooperation of major

Federal Government credit granting agencies, the OMB,

the Chief Financial Officers Council and the Department of

the Treasury. The DCIA significantly enhanced the Debt

Collection Act of 1982. The DCIA requires Federal

agencies to report to credit reporting agencies, information

on all delinquent Federal consumer debts. The DCIA also

authorizes the submission of information on consumer

debtors considered as “current.” Federal agencies have

been required, as a matter of policy, to report all (current

and delinquent) commercial debts since September 1983. 
Introduction

1-4

This requirement was subsequently incorporated into OMB

Circular A-129 and the Federal Claims Collection

Standards. As detailed later in this document, agencies are

encouraged to report their entire debt portfolios (current

and delinquent debts).

Definitions

A “claim” or “debt” (used interchangeably) means any

amount of money, funds or property that has been

determined by an appropriate official of the Federal

Government to be owed to the United States by a person,

organization or entity other than another Federal agency. 

Section 3701(b) of Title 31 of the United States Code

defines a “debt” or “claim” to include:

C funds due to the United States on account of 

loans made, insured or guaranteed by the

Government, (including any deficiency or

difference between the price obtained by the

Government in the sale of a property and the

amount due to the Government on a

mortgage on the property);

C expenditures of non-appropriated funds;

C overpayments;

C any amount the U.S. is authorized by statute

to collect for the benefit of any person;

C the unpaid share of any non-Federal partner

in a program involving a Federal payment

and matching or cost sharing payments by

the non-Federal partner;
Introduction

1-5

C fines or penalties assessed by an agency; and

C any other amounts of money or property due

to the Government other than delinquent

taxes and tariffs.

“Accounts receivable” are generated by all Federal

agencies. Examples of accounts receivable are: fines,

fees, penalties, forfeitures, royalties, audit disallowances, 

claims, rents, damages, overpayments, and other amounts

owed to the Government.

“Credit reporting agency” (also known as “credit

bureau”)- Major consumer and commercial credit

reporting agencies that have signed agreements

Memoranda of Understanding (MOUs) with Government

agencies to receive and integrate credit information (data)

from voluntary subscribers (Federal agencies and private

sector entities) into their respective database. In turn, this

information is sold, oftentimes by smaller credit reporting

agencies, to purchasers of credit data (in the form of credit

reports and other products). The credit report, etc., is used

to determine creditworthiness, conduct credit scoring, assist

with collection efforts, or for other permissible purposes as

defined by the Fair Credit Reporting Act. (See Appendix 3

for designated credit reporting agencies.) 

“Non-exclusive basis” - Federal agency debtor account

information is reported to each of the designated credit

reporting agencies receiving Federal debtor data. 

(Agencies should attempt to resolve issues which prevent

reporting in this manner.) 
Introduction

1-6

When to Report Debtor

Information

Credit

Extension

Debt

Collection

Write-Off/

Close Out

Account

Servicing

Submit accounts

to credit reporting

agencies during:

Distinction between Commercial and Consumer Debt

In accordance with the definitions contained in “Managing

Federal Receivables,” the term “commercial” signifies a

business activity and the term “consumer” signifies a

personal activity. The purpose of the activity, not the

type of entity involved, determines whether a debt is

classified as commercial or consumer.

For example, a loan to a farmer to obtain additional land or

equipment for farming would be considered a commercial

loan; whereas a loan to the same farmer to purchase a

personal residence would be a consumer loan.

When to Report Debts to Credit Reporting Agencies (Reporting Cycle)

There are four points in the credit management and debt

collection cycle when Federal agencies should make use of

credit reporting agencies. As part of its financial

management responsibility, an agency should report

information on its Federal debtors to credit reporting

agencies in the following circumstances:
Introduction

1-7

C Credit Extension - Under the DCIA heads of

agencies must, as a condition for insuring or

guaranteeing any loan, financing, or other extension

of credit under any law to a person, require that the

lender provide information relating to the extension

of credit to consumer reporting agencies or

commercial reporting agencies, as appropriate. 

Additionally, pursuant to 31 U.S.C. § 3720B,

Federal agencies may not grant a loan or loan

guarantee to a person or entity which owes

delinquent nontax debt to the Federal government.

See 31 C.F.R. § 285.13. Agencies are required by

OMB Circular No. A-129 to screen potential

applicants for Federal financial assistance for

creditworthiness. The applicants’ credit history

(credit report) also becomes a part of the official

loan origination files. In instances where a

delinquent Federal tax or nontax debt has been

reported and is reflected in the applicant’s credit

history, agencies should immediately suspend loan

processing (unless statutorily prohibited). In

instances where the loan, etc. has been approved,

the indebtedness should be reported to a credit

reporting agency after funds have been disbursed.

C Account Servicing - Once a loan is awarded and

disbursed, or a financial obligation to repay an

administrative debt has been established, the

Federal agency (or in the case of a guaranteed loan,

the lender) becomes responsible for servicing or

controlling the account. Federal agencies may

provide to consumer reporting agencies or

commercial reporting agencies information from a

system of records that a person is responsible for a

claim which is current. If account servicing has

been contracted out or a lender is servicing the

account, agencies must require the servicer or

lender to make the initial referral of debtor account

information to credit reporting agencies and to

provide accurate and consistent account status
Introduction

1-8

updates.

C Debt Collection - Reporting debts to credit

reporting agencies is an essential part of an

agency’s debt collection efforts. In accordance with

Federal law, agencies must report information on all

Federal delinquent consumer debtors to credit

reporting agencies. Regulations and policies

governing commercial debtors are covered in OMB

Circular No. A-129 (revised November 2000) and

the Federal Claims Collection Standards (revised

November 2000). With some exceptions, Federal

agencies must not extend credit assistance to

debtors owing unresolved delinquent debts to the

Government (see 31 U.S.C. § 3720B and 31 C.F.R.

§ 285.13). When debts have been transferred to

FMS or a designated debt collection center for

collection pursuant to the DCIA, FMS or the debt

collection center, as appropriate, will perform debt

collection activities (which include referral of

accounts to credit reporting agencies if requested by

the transferring agency).

Prior to reporting delinquent consumer debts to

credit reporting agencies, agencies must provide

consumer debtors certain rights of due process 

which are detailed in Chapter 2, “Reporting

Consumer Account Information.” 

C Write-Off and Close-Out - An effective

receivables management program must include the

systematic write-off and close-out of uncollectible

debts pursuant to OMB Circular A-129. 

Essentially, once the debt is written-off, the agency

must either classify the debt as currently not

collectible (CNC) or close-out the debt. If an

agency determines that continued collection efforts

after write-off are likely to yield higher returns in

the future, then the debt is not closed out but
Introduction

1-9

classified as CNC and reporting to credit reporting

agencies should continue. Once the agency

determines it is no longer cost effective or legally

possible to pursue collection, the debt should be

closed-out and all collection activity ceased. The

account’s status is forwarded to the credit reporting

agencies receiving Federal data. Agencies should

consult OMB Circular A-129 for details.

“Individual Service Agreements” and Memoranda of Understanding (MOUs)

In past years, many agencies signed “Individual Service

Agreements” with credit reporting agencies to accept, store

and integrate Federal data into credit reporting agency

databases. While FMS does not require termination of 

these agreements, the Memoranda of Understanding

(MOUs) promote standardization of the reporting process

government wide and are consistent with current law. 

Agencies are encouraged to enter into the MOUs at the

expiration of their current service agreements. The MOU

should be signed by the Federal agency Chief Financial

Officer or the designee and the appropriate credit reporting

agency official. Federal agencies should also have their

counsel review current agreements to determine whether

they are compliant with current law and policy. 

The MOUs obligate Federal agencies to provide credit

information on their accounts to the particular credit

reporting agencies signing the MOU. In turn, the credit

reporting agencies agree to accept, load, store, and

incorporate this information into their data files and credit

information. This ensures that when a Federal agency or

private sector lender purchases a credit report on an

applicant or debtor, the Government’s information is

reflected in the report purchased.
Introduction

1-10

Obtaining Credit Reports

The smaller credit reporting agencies authorized by the

General Services Administration (GSA) on the Federal

Supply Schedule (FSS) to provide credit reports for Federal

agencies must purchase their information from the

designated credit reporting agencies listed at Appendix 3.

Federal agencies should use the FSS for the purchase of

credit reports and related information, unless circumstances

dictate otherwise. Purchasing credit reports through the

FSS is no different from purchasing other items through the

GSA’s FSS.

Agencies are required by OMB Circular No. A-129 to

purchase credit reports for screening loan applicants. 

Where appropriate, Federal agencies should obtain

information (credit reports) on loan applicants from both

commercial and consumer credit reporting agencies prior to

extending credit or other Federal assistance. Credit reports

should also be purchased at other times throughout the

credit cycle: 

C to verify a debtor’s claim of financial inability to

pay a debt in a lump sum, as is required prior to

entering into an installment agreement;

C to reassess a debtor’s financial position when

considering rescheduling a debt or otherwise

entering into a workout agreement;

C to evaluate administrative offset and other debt

collection possibilities; and 

C to meet the requirement that an agency provide

credit data on a debtor when referring a debt for

litigation. 
Introduction

1-11

The agency’s cost to purchase a credit report or other credit

information should be passed along to the borrower/debtor:

(a) through the application fee when used to determine

creditworthiness and eligibility during credit extension;

and, (b) as an administrative cost when used after the debt

becomes delinquent. 
Introduction

1-12

Credit Bureau Reporting Made Easy

Action Required Consumer

Reporting

Commercial

Reporting

1. Sign Memoranda of Understanding (MOU) with credit reporting

agencies (see “Model” Memoranda of Understanding at Appendix 2)

facilitated by the Financial Management Service, Debt Management

Services. See Appendix 3 for Treasury/FMS contact information.

YES YES

2. Contact the consumer and/or commercial credit reporting agencies 

receiving Federal debtor data to establish reporting relationship (contacts,

addresses, etc.). Agencies are reminded that data should be sent on a nonexclusive basis (data should be sent to each of the credit reporting

agencies). See Appendix 3 for credit reporting agency contacts.

YES YES

3. Agree with each credit reporting agency on the method in which data

will be sent. (tapes, disks, electronically, etc.)

YES YES

4. Prepare data for submission to credit reporting agency.

NOTE: Reporting Cycles

Consumer - Report Monthly-(more frequent updates may be made as

required)

Commercial - Report Quarterly-(more frequent updates may be made as

required)

YES YES

5. Complete “Transmittal of Account Information” sheet to accompany

tape, etc. (Attachment A to MOU)

YES YES

6. Submit data to credit reporting agencies. The credit reporting agencies

will return all tapes to the respective agency after the data has been loaded

into the respective databases. Agencies are encouraged to work to

establish procedures to ensure that the information has been loaded and is

being properly reported by the credit reporting agencies.

YES YES

7. Prepare quarterly report to Financial Management Service (Attachment

B to MOU).

YES YES
Introduction

1-13

 

 

Special Rules/Laws Consumer

Account

Data

Commercial

Account

Data

The Privacy Act of 1974, as amended - Promotes greater governmental

respect for the privacy of citizens.

YES MAY

APPLY*

Debt Collection Act of 1982 (DCA) - Increases the efficiency of

government wide efforts to collect debts owed to the United States and to

provide additional procedures for the collection of those debts. YES YES

DCA due process requirements include: Requirement for 60-day notice to

debtor before submission of delinquent debtor data to credit reporting

agencies. See Chapter 2 - Reporting Consumer Accounts

YES N/A

Debt Collection Improvement Act of 1996 (DCIA ) - Requires the

reporting of all nontax delinquent consumer debts to credit reporting

agencies. 

YES N/A

The DCIA authorizes the reporting of current consumer and commercial

debts.

YES YES

OMB Circular No A-129, dated November 29, 2000 - Provides regulatory

guidance consistent with the DCA and the DCIA regarding the referral of

accounts to credit reporting agencies. Instructs agencies to report all

current and delinquent commercial debts. 

YES YES

The Department of the Treasury, Financial Management Service’s

“Managing Federal Receivables” - provides program guidance to Federal

agencies on reporting of information to credit reporting agencies.

YES YES

Justice/Treasury “Federal Claims Collection Standards”- dated

November 22, 2000 - Regulations governing Federal debt collection

procedures (including the use of credit reporting agencies).

YES YES

*Consult with Agency Counsel

2-1

Chapter 2 Reporting Consumer Account Information

Reporting Consumer Accounts

The purpose of this chapter is to provide general

instructions for reporting account information on

consumer debts to credit reporting agencies.

Special Rules for Reporting Consumer Account Information 

The reporting of information on individual consumers is

governed by certain laws, regulations and policy guidance,

including:

C The Privacy Act of 1974 as amended - Promotes

greater governmental respect for the privacy of

citizens. 

C Debt Collection Act of 1982 (DCA) as amended by

the Debt Collection Improvement Act of 1996

(DCIA) - increases the efficiency of government

wide efforts to collect debts owed to the United

States and to provide additional procedures for the

collection of those debts.

C DCIA - The DCIA requires the reporting of all non

tax delinquent consumer debts to credit reporting

agencies. The DCIA also authorizes the

reporting of current consumer and commercial

debts.

C OMB Circular No. A-129 - Provides regulatory

guidance consistent with the DCA and the DCIA

regarding the referral of accounts to credit reporting

agencies.
Reporting Consumer Account Information

2-2

C Justice/Treasury Federal Claims Collection Standards -

regulations governing Federal debt collection procedures

(including the use of credit reporting agencies).

C The Department of the Treasury, Financial Management

Service’s Managing Federal Receivables - includes

guidance to Federal agencies on reporting information to

credit reporting agencies.

Legal Requirements

Federal agencies are legally required to follow certain procedures

when reporting delinquent consumer debts to credit reporting

agencies. Prior to reporting a delinquent consumer debt to a credit

reporting agency, a Federal agency must:

C comply with the provisions of the Privacy Act of 1974. 

See 31 U.S.C. § 3711(e)(1)(A). Agencies should consult

their counsel in order to comply with Privacy Act

requirements.

• establish procedures to:

– disclose promptly to consumer reporting agencies

substantial changes in the condition or amount of a

debt;

– verify or correct promptly information about a debt

on request of a consumer reporting agency for

verification of information (see section entitled

“Handling Disputed Information in Consumer

Debtor Files”on page 2-5); and

– get satisfactory assurances that consumer reporting

agencies are complying with Federal laws related to

providing consumer credit information. See 31

U.S.C. § 3711(e)(1)(E).
Reporting Consumer Account Information

2-3

C take reasonable action to locate a person about

which the information will be reported for whom

the agency does not have a current address. See 31

U.S.C. § 3711(e)(3).

• review the debt to be reported and decide that the

debt is valid and overdue. See 31 U.S.C. §

3711(e)(1)(B). 

• determine that the person about which the

information will be reported has not:

– entered into a written repayment plan with

the Federal agency; or 

– filed for a review of the debt. See 31 U.S.C.

§ 3711(e)(1)(D).

• send a notice to the person about which the

information will be reported at least 60 days prior to

reporting a debt to a credit reporting agency (see

“60-day Notice of Intent to Report to Credit

Bureau,” below) and notify the person that he or she

is entitled to a complete explanation of the debt, to

dispute information in the records about the debt,

and to an administrative repeal or review of the

debt. See 31 U.S.C. § 3711(e)(1)(C). 

• provide for a review of the debt upon request,

including an opportunity for reconsideration of the

initial decision. See 31 U.S.C. § 3711(e)(2).

60-Day Notice of Intent to Report to Credit Bureau

Pursuant to 31 U.S.C. § 3711(e), when reporting

information on delinquent consumer accounts, the debtor

must be notified 60 days in advance of such reporting to the

credit reporting agency. Agencies should provide this

notice in the initial billing notice or demand letter, but no

later than the second demand letter sent by the agency. 
Reporting Consumer Account Information

2-4

The notice must include:

C the agency’s intent to report the debt to a

credit reporting agency;

C the specific information to be transmitted

(i.e., name, address, and taxpayer

identification number, information about the

debt);

C the actions which may be taken by the

debtor to prevent the reporting (i.e.,

repayment in full or a repayment

agreement).

C the rights the debtor has under 31 U.S.C. §

3711 to a complete explanation of the debt,

to dispute the debt, to review records about

the debt, and to seek an administrative

repeal or review of the agency’s

determination that the debt is due.

NOTE: Agencies must also comply with any

requirements contained in any contract, agreement,

law or regulation applicable to the debt.

Once all due process procedures have been observed, (i.e.,

the demand letter(s) have been sent, the debtor has been

given 60-days to respond to the notification of intent to

report to a credit reporting agency, and either the debtor

has not responded or any disputes have been resolved, an

agency must report the debt to the appropriate credit

reporting agencies. (See Appendix 3 - Credit Reporting

Agency Contacts).
Reporting Consumer Account Information

2-5

Handling Disputed Information in Consumer Debtor Files

Consistent with 31 U.S.C. § 3711(e), debtors shall have the

right to dispute inaccurate information contained in their

files and the right to review records pertaining to their

debts. 

Reporting debts owed to the United States to consumer

reporting agencies is governed by the DCA and the DCIA

as codified at 31 U.S.C. § 3711(e). Obligations of

consumer reporting agencies and state and local

government agencies to investigate disputes under the Fair

Credit Reporting Act (FCRA) arise independently of

3711(e). Federal agencies should be aware that credit

reporting agencies may be required by the FCRA to delete

information if their investigation is not completed within

30 days. 

It is critical for agencies to perform their investigations in a

manner that will allow completion within 30 days and

prevent deletion of the information. The standard

procedures for resolving disputes by credit reporting

agencies are depicted on the flow chart shown on page 2-7

titled “Summary of Procedures Disputing Accuracy of a

Credit Report”. The 30-day clock starts the day the credit

reporting agency receives a dispute from a debtor in

writing, by phone, or in person. Credit reporting agencies

then have five (5) days to provide the notice of dispute and

all relevant information to the Federal agency. Given that

most responses back to the credit reporting agencies from

Federal agencies will be by mail, a three to five day mail

time allowance is required. Once the mail times are

deducted this provides Federal agencies approximately 20-

22 days after receipt of the dispute to resolve and return it

to the credit reporting agency on the last day before

deletion.

While 31 U.S.C. § 3711(e) does not hold Federal agencies

to a specific timeframe, it does require Federal agencies to

verify or correct promptly information about the claim on
Reporting Consumer Account Information

2-6

request of a consumer reporting agency for verification of

information disclosed.

Credit reporting agencies are not required to remove

accurate data from their files unless it is outdated or cannot

be verified. (See chart on the next page which details the

consumer dispute process.)

Therefore, Federal agencies should have procedures in

place to promptly address such disputes. In order to avoid

having information deleted at the expiration of the 30 days,

agencies are strongly encouraged to review and make a

decision on disputes and report back to the credit reporting

agency within fourteen (14) days if possible and no longer

than twenty one (21) days maximum.
Reporting Consumer Account Information

2-7

SUMMARY OF PROCEDURES DISPUTING ACCURACY OF A CREDIT REPORT*

Debtor requests and receives copy of credit report

Debtor is satisfied with report

contents -- process complete

Debtor is not satisfied and disputes

in writing, by phone, or in person

Credit Reporting Agency provides notice of dispute

to Federal Agencies within five business days along

with “all relevant information” that the Debtor provided

Federal Agency considers “all relevant information”

submitted by the Debtor

Federal Agency determines its information to be 

accurate

Federal Agency notifies credit reporting agency

Information is maintained on file by

Credit Reporting Agency

Federal Agency determines its information to be 

inaccurate or incomplete or can’t be verified

Federal Agency notifies all Credit Reporting 

Agencies to which it reports

Credit Reporting Agencies must “promptly”

delete (or update info) as appropriate based 

on Federal Agency reinvestigation

Within five days of completion of reinvestigation, Credit Reporting Agency

notifies the debtor in writing of the results. Notice must include:

3⁄4 Statement that reinvestigation is completed and a revised credit report

3⁄4 Notice that the Debtor can add a 100-word statement to report

3⁄4 If requested, procedures used to reinvestigate, and names, addresses, and phone numbers for Federal Agencies

OR

OR

MUST

T

A

K

E

N

O

L

O

N

G

E

R

T

H

A

N 30 D

A

YS

*BASED ON “THE CREDIT REPORTING DISPUTE RESOLUTION PROCESS” WITH PERMISSION OF THE CONSUMER

DATA INDUSTRY ASSOCIATION (CDIA)
Reporting Consumer Account Information

2-8

Procedures to be Used When Consumer Debt Goes from “Current” to “Delinquent” Status

As described earlier in this chapter, Federal agencies must

comply with certain due process procedures before

reporting a delinquent consumer debt to a credit reporting

agency. A minimum of 60 days is required to comply with

due process procedures, which include providing the debtor

with notice and an opportunity to dispute the information to

be reported. See “Legal Requirements” and “60-Day

Notice of Intent to Report to Credit Bureau.”

This section describes the procedures to be followed when

the status of a consumer debt changes from “current” to

“delinquent.” Federal agency procedures applicable to the

due process period (60 days or while appeals and reviews

are pending) are as follows:

C send the 60-day notice described in the above

section entitled “60-Day Notice of Intent to

Report to Credit Bureau;” 

C if the agency has been reporting the debt as

“current/not delinquent,”remove the debtor’s

account from data (tapes, etc.) sent to the credit

reporting agencies. In other words, do not report

the account;

C if the debtor asks for a review of the files or

disputes the debt, do not report the debt until any

reviews or appeals are completed;

C if the debtor submits a payment(s) or enters into a

repayment agreement within the 60-day period

the account should be updated accordingly;

C after passage of the 60-days (or after all reviews

or appeals are completed), report the delinquent

account(s) to the credit reporting agencies. 
Reporting Consumer Account Information

2-9

Presumably, this would be the third month of delinquency,

since consumer accounts are reported on a monthly basis. 

During subsequent reporting periods, the agency should

update the debtor’s account status. NOTE: Generally,

Federal agencies are not required to send debtors multiple

notices of intent to report to a consumer reporting agency. 

Agencies should consult their counsel to determine when

multiple notices are required. 

Reporting Debts Being Collected by FMS’ Debt Management Services (DMS) 

With some exceptions, the DCIA requires that Federal

agencies transfer to Treasury, or a Treasury-designated

debt collection center, all debts which are greater than 180

days delinquent (see 31 U.S.C. § 3711(g)). When a debt is

transferred to the Financial Management Service’s Debt

Management Services (DMS) -- the area within Treasury

responsible for collecting delinquent debt--the agency to

which the debt is owed (known as the “creditor agency”)

must certify that it has completed all due process required

by the DCIA and Treasury regulations for reporting debts

to credit reporting agencies. (See 31 U.S.C. § 3711(e) and

31 C.F.R. § 285.12 for due process and certification

requirements.) 

Federal agencies have the option of transferring delinquent

debts prior to the expiration of 180 days, provided they

have completed all due process requirements, and they

certify the debts as required by 31 C.F.R. § 285.12.

Federal agencies have two options for credit bureau

reporting once they have referred cases to DMS for debt

collection, a process known as “cross-servicing:” (1) they

may continue to report the cases to credit reporting

agencies, and DMS will not do so; or (2) they may cease

reporting, and DMS will report to credit reporting agencies

on the Federal agencies’ behalf. Federal agencies are asked

to select the option they prefer when completing the “DMS

Cross-servicing Agency Profile” form (see Appendix 4). 
Reporting Consumer Account Information

2-10

Further information on FMS cross-servicing can be found

in the FMS publication “Cross-Servicing Implementation

Guide” at: http://www.fms.treas.gov/debt/crosserv.html.

As a part of its regular debt collection procedures, DMS

will report debts it is collecting to the appropriate

designated credit reporting agencies. If a credit reporting

agency notifies DMS that a debtor has disputed the validity

or accuracy of a debt, DMS will notify the creditor agency

of the dispute. If the creditor agency does not recertify the

debt within the specified time, DMS will return the entire

debt file to the agency and cease all further collection

efforts, including referral to credit reporting agencies. See

Appendix 3 for DMS contact information.

General Instructions

The following applies for all consumer accounts:

C Prior to reporting delinquent consumer debts, the

head of the agency must comply with legal

requirements described earlier in the “Legal

Requirements Section:”

C An agency must report account information on

delinquent nontax, non-tariff, consumer debts at

least monthly. Agencies may update account

information more frequently to maintain the integrity

and accuracy of the information reported. Agencies

should report complete information on each debt, not

just the updated items.

There is no minimum dollar threshold on the

amounts for debts which agencies can report.
Reporting Consumer Account Information

2-11

C In accordance with the DCIA, agencies are now

authorized to report current (i.e., not delinquent)

consumer accounts to credit reporting agencies. 

Consumer information is reported on a monthly

basis. Agencies should report current account data

so that debtor files contain all indebtedness to the

U.S. Government. This information assists debtors

who are current when being considered for credit

and assists the government when determining the

debtor’s creditworthiness and ability to repay other

obligations (avoids overextension). 

C Agencies should report debtor account information

to credit reporting agencies on a non-exclusive basis

(i.e., submit account information to each consumer

credit reporting agency receiving Federal data)

unless circumstances dictate otherwise.

In order to avoid potential reporting errors,

agencies should not re-use or re-issue account

numbers after an account has been closed.

C Agencies should report each debt separately and not

group together debts owed by a single borrower,

regardless of the amount of activity with that

borrower.

C Agencies should report capitalized interest or other

capitalized expenses as part of the debt giving rise to

the interest or expense. For example, if $1,000 in

interest is capitalized on a $50,000 debt, the amount

to be reported as a single account would be $51,000.
Reporting Consumer Account Information

2-12

C In the case of participation loans (loans consisting of

both direct and guaranteed portions or more than one

lender), an agency would report only the direct

participation amount. The guaranteed amount would

become reportable by the agency after the agency

acquires the guaranteed portion in satisfaction of a

default claim.

C An agency should furnish the account information

electronically, on-line, on magnetic tape, manually,

or in any other form agreed to by both parties.

Use of the Metro 2 Format for Referring Information to Credit Reporting Agencies

In 1997, the credit reporting industry initiated the use of

the “Metro 2" format which became the industry

standard for reporting debtor information. The “Metro

2" format was developed by Consumer Data Industry

Association (CDIA) to replace the Metro format which was

developed in the late 1970's. The Metro 2 format facilitates

complete and greater accuracy of reporting of data and

provides the following features: 

C format is designed to be easier to use and

understand;

C allows reporting on debtors that “cannot be located;”

C allows reporting of deferred payments and

“associate” borrowers/debtors information; 

C Identification numbers can be changed to

accommodate transfer or sale of debt (asset sales);

and,

C the format accommodates a 4-digit “year” field to

accommodate reporting in the year 2000 and beyond.
Reporting Consumer Account Information

2-13

Reporting Consumer Account Information

The credit reporting agencies receiving Federal debtor

data will assist agencies to implement Metro 2 format

reporting. (See Appendix 3 for credit reporting agency

contacts.)

Electronic copies of the Metro 2 reporting format are

available from Consumer Data Industry Association (DCIA)

via the Internet in the following steps:

a) INTERNET address: 

http://www.cdiaonline.org;

b) from the home page, click on the “Data

Provider/Metro2/ACDV/AUD” icon;

c) click underneath Metro 2 for Credit

Reporting on “Instructions to Access the

Metro 2 Format;” The Metro 2 format is

posted on the Consumer Data Industry

Association (CDIA) website in Adobe

Acrobat Reader format, also known as “pdf.” 

Adobe Acrobat Reader will be necessary to

open and read the document.

d) call telephone numbers listed to obtain 

UserID and passcode.

e) click on “download” where indicated;

f) complete and submit user/subscriber

information;

g) a prompt that the submittal was successful

should be displayed; select the option to

download the format in either “windows”

or “MAC.”

h) type in “METRO 2" (uppercase) at the user
Reporting Consumer Account Information

2-14

i.d. prompt; and finally,

i) type in “accuracy” at the password prompt.

The speed at which the file will download depends on the

type of modem used with your computer. The file will be

downloaded as a “zipped” file which must then be

“unzipped” to be opened.

Federal Agency Identifiers

A list of agency identifiers (Appendix 5) has been

developed for use with the Metro 2 format.

Important Debtor Identification Elements

When preparing information for submission to the credit

reporting agencies, the following information is essential to

maintaining the accuracy of debtor records:

C Account Number: This should be the unique

alphanumeric or numeric code which identifies each

individual loan, loan guarantee, or debt.

Codes which are based primarily on Social Security

Numbers are acceptable only if the agency can

distinguish between different loans which may have

been made, or other types of credit which may have

been extended to an individual or entity and if such

use of Social Security Numbers is otherwise

authorized by law. Agencies have the option of

adding an additional character to the code to make

such distinctions. 
Reporting Consumer Account Information

2-15

C Taxpayer Identification Number (TIN): This is the

number used by the Internal Revenue Service to

identify individuals and businesses (e.g., Social

Security Numbers and Employer Identification

Numbers). Agencies are required by 31 U.S.C. §

7701(c) to obtain the TIN of all persons or entities

with whom it does business. All agencies and

lenders extending credit shall require the applicant

or borrower to supply a TIN as a prerequisite of

obtaining credit or assistance. NOTE: Delinquent

debts should be reported even if agencies are unable

to locate a TIN.

When transmitting files to the credit reporting

agencies, the TIN can be omitted only if the Federal

agency has exhausted all remedies in efforts to

obtain it, and if the credit bureau reporting agency

agrees to accept the account without it. 

C Name: This should identify the individual(s) or

entity legally liable to repay the debt. Agencies

should require the debtor to notify them of any

changes made to legal liability for the debt and

should maintain, in their files, the names (and

addresses) of the debtor of record and all other

legally liable parties.

C Address: This should be the address of principal

residence of the legally liable individual(s) which

corresponds to the debtor(s) of record, including

city, state and zip code. A street address rather than a

route number or post office box should be reported. 

C Type of Debt: Report the category that best describes

this account.

C Date of First Disbursement/Date Debt Established: 

For a loan or line of credit, this is the date when

credit was extended by the initial disbursement of

funds or the closing on a loan, whichever is earlier.
Reporting Consumer Account Information

2-16

For other types of debts, the date to be reported is the

date on which the event which created the debt

occurred or the date the charge was assessed. For

example, if the debt arose as the result of an

installment sale, then the date of such sale goes in

this field. Similarly, the date a fine or fee is assessed

would be the date the debt was established. The date

the debtor was notified of the debt should not be

used unless that is the date the debt was established

(e.g. certain administrative debt).

C Amount: Report the full amount of the original debt

and any capitalized interest, principal only.

C Terms: This is the length of time for which credit has

been extended, from the date of the first

disbursement of funds until the date of the last

originally scheduled repayment by the debtor.

Report this time period in years for real estate loans.

C Association: Report the individual’s or entity’s

relationship to the account, e.g., individual, joint, comaker, etc. If reporting a relationship other than

individual, information must be provided on each

legally liable party involved with a debt. If the

financing information is the same for all parties, a

separate section on the same file must be completed.

If the financing information is not the same, then a

separate file must be completed for each liable party.
Reporting Consumer Account Information

2-17

SUMMARY

Federal agencies seeking to establish a reporting relationship with credit reporting agencies

should do the following:

1. Execute an MOU with each consumer credit reporting agency accepting Federal

data on consumer debts (See Sample MOU at Appendix 2).

2. Contact each of the consumer credit reporting agencies receiving Federal debtor

data to establish a reporting relationship (contacts, addresses, etc.). Federal

agencies are reminded that data is to be sent on a non-exclusive basis (all data is to

be sent to each of the consumer credit reporting agencies). See Appendix 3 for

credit reporting agency contacts.

3. Agree to method and media in which data will be sent (magnetic tape, disks,

electronic, etc.).

4. Prepare data for submission to credit reporting agencies. See Chapter 2 for

information on the “Metro 2" format for reporting consumer debt.

5. Complete “Transmittal of Account Information” sheet to accompany tape, etc.

6. Submit data to credit reporting agencies. The credit reporting agencies will return

all tapes to the respective agency after the data has been loaded into their database. 

Agencies are encouraged to work with the credit reporting agencies to develop a

method to determine whether debtor data has been loaded into their database and is

being properly reported.

7. As required by the DCIA, codified at 31 U.S.C. § 3711(e), Federal agency data

furnishers must notify consumer debtors of the agency’s intent to report a

delinquent debt; supply accurate account information; correct inaccurate

information; and research and respond to consumer disputes in a timely manner. 

3-1

Chapter 3 Reporting Commercial Account Information

Reporting Commercial Accounts

The purpose of this chapter is to provide general

instructions for reporting information on commercial

debts to designated credit reporting agencies and detailed

information on the categories of information to be reported. 

See OMB Circular No. A-129 for additional information.

General Instructions

The following applies to all commercial accounts:

Pursuant to OMB Circular No. A-129, and the Federal

Claims Collection Standards (FCCS), Federal agencies

shall report account information on all delinquent nontax,

non- tariff, commercial debts. Agencies shall also report

current nontax commercial debts. This information assists

debtors who are current when being considered for credit

and assists the government when determining the debtor’s

creditworthiness and ability to repay other obligations

(avoids overextension). There is no minimum dollar

threshold on the amounts for debts which agencies can

report.

C Account information should be reported on a nonexclusive basis; i.e., debtor information should be

submitted to each designated commercial credit

reporting agency receiving Federal data, unless

circumstances dictate otherwise. (See Appendix 3

for credit reporting agency contacts.)

C Federal agencies will report commercial account

information on a quarterly basis. More frequent

updates may be provided as necessary to maintain

the integrity and accuracy of the information being

reported. Agencies should report complete

information on each debt, not just the updated

items.
Reporting Commercial Account Information

3-2

C An agency should report each debt separately and

not group debts owed by a single borrower,

regardless of the amount of activity with that

borrower.

C An agency should report capitalized interest or

other capitalized expenses as part of the debt giving

rise to the interest or expense. (For example, if

$1,000 in interest is capitalized on a $50,000 debt,

the amount to be reported as a single account would

be $51,000.)

C In case of participation loans (loans consisting of

both guaranteed and direct portions or involving

more than one lender) an agency would report only

the direct participation amount. The guaranteed

amount would become reportable if the agency

acquires the guaranteed portion in satisfaction of a

default claim.

An agency should furnish the account information

electronically, on magnetic tape, disks, manually, or in any

other media agreed to by both parties. Magnetic tape

information should be prepared in the format provided at

the end of this chapter. An agency should report all of the

information listed in this section (beginning on Page 3-4)

for each account. Agencies currently unable to do so

must, at a minimum, provide the information below

that is indicated with an asterisk (*). This information is

essential for the adequate identification of an account.

Provisions should be made, however, for providing all

items of information as soon as possible. 
Reporting Commercial Account Information

3-3

Requests by the credit reporting agencies for additional

categories of information not included in this document

should not be honored unless authorized by law, and agreed

to by the agency, and the Debt Management Services of the

Financial Management Service (FMS) has been informed

of the request. See Appendix 3 for the Debt Management

Services contact information.

Reporting Debts Being Collected by FMS’ Debt Management Service (DMS)

With some exceptions, the DCIA requires that Federal

agencies transfer to Treasury, or a Treasury-designated

debt collection center, all debts which are greater than 180

days delinquent (see 31 U.S.C. § 3711(g)).

Federal agencies have the option of transferring delinquent

debts prior to the expiration of 180 days, provided they

have completed all due process requirements, and they

certify the debts as required by 31 C.F.R. § 285.12.

Agencies have two options for credit bureau reporting once

they have referred cases to the Financial Management

Service’s Debt Management Services (DMS) for debt

collection, a process known as “cross-servicing:” (1) they

may continue to report the cases to credit reporting

agencies, and DMS will not do so; or (2) they may cease

reporting, and DMS will report to credit reporting agencies

on the Federal agencies’ behalf. Federal agencies are asked

to select the option they prefer when completing the “DMS

Cross-Servicing Agency Profile” form (see Appendix 4). 

Further information on DMS cross-servicing can be found

in the DMS publication “Cross-Servicing Implementation

Guide” at: http://www.fms.treas.gov/debt/crosserv.html.

As a part of its regular debt collection procedures, DMS

will report debts it is collecting to the appropriate

designated credit reporting agencies. If a credit reporting

agency notifies DMS that a debtor has disputed the validity

or accuracy of a debt, DMS will notify the creditor agency

of the dispute. If the creditor agency does not recertify the
Reporting Commercial Account Information

3-4

debt within the specified time, DMS will return the entire

debt file to the agency and cease all further collection

efforts, including referral to credit reporting agencies. See

Appendix 3 for DMS contact information.

Handling Disputed Information in Commercial Debtor Files

While it is not required by law, Federal agencies should

handle disputed information from their commercial debtors

in the same manner as consumer disputes (see Chapter 2). 

Disputed information should be investigated and resolved

in a prompt and timely manner. The credit reporting

agency contacts listed on Appendix 3 are available to

assist with dispute resolution.

Commercial Account Data Elements

(*) Designates required field

Identification

Elements *(1) Account Number: Each debt must have a unique

account number. This should be the discrete

alphabetic, numeric or alpha-numeric code which

identifies each individual debt.

Codes which are based primarily on Social Security

Numbers or Employer Identification Numbers are

acceptable only if the agency can distinguish

between different debts which may have been made

or other types of credit which may have been

extended to a single entity and if otherwise

authorized by law. An additional character added to

the code could be used to make such distinctions. 

In order to avoid potential reporting errors, account

numbers should not be re-used or re-issued once an

account has been closed.
Reporting Commercial Account Information

3-5

*(2) Taxpayer Identification Number (TIN): This is the

number used to identify individuals and businesses

by the Internal Revenue Service (e.g., Social

Security Numbers and Employer Identification

Numbers). In accordance with the DCIA and OMB

Circular No. A-129, agencies are required to obtain

the TIN of all persons or entities with whom it does

business. See 31 U.S.C. § 7701(c). When

transmitting files to a credit reporting agency, the

TIN can be omitted only if the agency has

exhausted all means to obtain it. NOTE:

Delinquent debts should be reported even if

agencies are unable to locate and provide a TIN. In

instances where the TIN is not available, this field

of the reporting format submitted to the credit

reporting agency should be zero filled. 

*(3) Name: This should identify the individual(s) or

entity who is primarily legally liable to repay the

debt. Agencies should require the debtor to notify

them of any changes to legal liability. Agencies

should maintain the name(s) and address(es) of the

debtor(s) of record, guarantors, and any other

legally liable parties.

*(4) Address: This should be the address of the principal

residence or place of business of the legally liable

individual(s) or entity which corresponds to the

reported name, including city, state and zip code. A

street address should be provided; route numbers

and/ or post office boxes should be avoided

whenever possible.

Debt Elements *(5) Type of Debt: Report the type of debt (e.g., loan,

overpayment, fee, fine, penalty, claim, forfeiture,

rent, royalty, damages, audit disallowance, sale of

goods or services, advances for services or goods no

longer required, miscellaneous, or other).
Reporting Commercial Account Information

3-6

*(6) Date Debt Initiated: In the case of a loan or line of

credit, this is the date when the Government made

the legal commitment to extend credit. If this date

is unavailable, report the date of the initial

disbursement of funds or the date of the loan

closing, whichever is earlier. For other types of

debt, the date to be provided is the date the debt was

created or assessed. For example, use the date of

sale if the debt arose as the result of an installment

sale, or date of assessment in the case of a fine or

fee. The date that the debtor was notified of the

debt should not be used unless this is the date the

debt was established (e.g., certain administrative

debt).

* (7) Amount of Debt: Report the full amount of the

original debt, principal only. (Report dollars only)

 (8) Maturity Date: Report the date by which the debt is

due to be repaid in full.

 (9) Frequency: Report how often payment is made

(e.g., monthly, quarterly, semi-annually, annually,

or irregularly.)

(10) Security: Report a loan as “Secured” (or “S”) if

collateral had to be pledged as part of the original

loan agreement and the value of the collateral is

known to be equal to or greater than the full loan

amount. In any other circumstance, this category

should be left blank.

Current Activity

Elements (Status Codes) (11) Status: Report the current status of the debt as

identified below:

(a) current -- payments are up-to-date, and the

account is in good standing.
Reporting Commercial Account Information

3-7

(b) delinquent -- indicates that at least one

repayment of the loan or debt is overdue.

This classification should be used when

there is no other status which better

describes the account.

(c) in default -- indicates 90 or more days past

due.

(d) in collection -- account has been assigned to

an attorney, collection agency, an agency’s

internal collection department.

(e) contested -- terms or amounts are in dispute;

however, case has not gone into formal

proceedings.

(f) in litigation – court proceedings are

pending.

(g) foreclosure started -- proceedings which will

lead to foreclosure have been undertaken.

The term “foreclosure” is usually used for

mortgaged property.

(h) foreclosed -- foreclosure has been

completed.

(i) repossessed collateral -- collateral has been

repossessed, either voluntarily or

involuntarily.

(j) written off /currently not collectible --

amount of loan or debt has been written off,

however the Agency has determined to

continue to pursue further collection efforts.
Reporting Commercial Account Information

3-8

(k) settled -- (compromised) account legally

paid for less than full balance and the debtor

has no further legal obligation.

(l) paid in full -- account repaid in accordance

with agreement, no outstanding balance due.

(m) paid in full/was in collection -- account has

now been paid, although it had gone to

collection.

(n) paid in full/written off -- account has now

been paid, although the account had been

previously written off.

(o) paid in full/was repossession -- account has

now been paid, although repossession had

occurred.

(p) cannot be located -- entity has gone out of

business or cannot be found at any address.

(q) written off/closed-out or discharged -

collection action has terminated and no

further collection efforts are warranted.

Account was reported to IRS on Form

1099C.

(r) other (specify).

Since these classifications are not intended to be

mutually exclusive, more than one may apply in

some situations; however, the classification

reported should be the one which most

accurately reflects the current collection activity

of an account.
Reporting Commercial Account Information

3-9

Some status classifications must be considered to

override others. The following are such

classifications, in order of priority; (a) debtor

cannot be located; (b) account has been foreclosed;

and, (c) in litigation. Information on bankruptcies

will be obtained by credit reporting agencies from

public records and included on the appropriate

credit report. “In bankruptcy” is not to be reported

by agencies as an account’s status. “In collection”

should be reported instead.

(12) Amount of Debt Outstanding: The amount to be

reported is the total amount currently owed on the

debt, including all interest and late fees.

(13) Past Due Amount: The amount to be reported is the

amount which is overdue, including financing

interest and all late charges.

(14) Date of Most Recent Payment: Report the most

recent date on which payment was received. If no

payment has been received, leave blank.

(15) Date of Violation: This is the date on which the

most recent violation of the agreement occurred, if

applicable. If the violation is a delinquency, report

the date the debt became delinquent. If a grace

period is given for payment (e.g., 30 days after the

due date before additional charges are levied), the

debt becomes delinquent if the period ends without

payment. However, the date of delinquency is the

original due date, not the date which designates the

end of the grace period.
Reporting Commercial Account Information

3-10

Agency Identification

Elements (16) Contact Person: Report the name and telephone

number for the individual designated as contact for

the lending agency or division responsible for

handling the debt.

*(17) Federal Creditor Agency: Report the department, or

agency, and if available, the sub-agency and the

program under which the lending or other

credit/debt activity occurred.
Reporting Commercial Account Information

3-11

SUMMARY

1. Execute MOU with each commercial credit reporting agency accepting Federal

data on commercial debtors (See Sample MOU at Appendix 2).

2.. Contact each of the commercial credit reporting agencies receiving Federal debtor

data to establish a reporting relationship (contacts, addresses, etc.). Federal

agencies are reminded that data is to be sent on a non-exclusive basis (all data is

to be sent to each of the commercial credit reporting agencies). See Appendix 3

for credit reporting agency contacts.

3. Agree to method and media in which data will be sent (magnetic tape, disks,

electronic, etc.).

4. Prepare/format data for submission to credit reporting agencies. The Commercial

Reporting Format is contained in Chapter 3.

5. Complete “Transmittal of Account Information” sheet to accompany tape, etc.

6. Submit data to credit reporting agencies. The credit reporting agencies will return

all tapes to the respective agency after the data has been loaded into their

database. Agencies are encouraged to work with the credit reporting agencies to

develop a method to determine whether debtor data has been loaded into their

database and is being properly reported.
Reporting Commercial Account Information

3-12

AUTOMATED REPORTING FORMAT FOR COMMERCIAL DEBT

OLD DATA

FIELD

NEW DATA FIELD RELATED DATA ELEMENT POSITION FIELD SIZE FIELD

TYPE

NOTE

G G

Contributor

Number

Contributor Number 2-7 6 N Requested/ Assigned

by Credit Reporting

Agency

Filler Filler 8-11 4 -

*Name of Debtor -

1

*Name of debtor-1 *(3) Name 12-51 40 AN

*Name of Debtor -

2

*Name of Debtor-2 52-91 40 AN

*Address -1 *Address -1 *(4) Address 92-121 30 AN

*Address -2 *Address -2 122-151 30 AN

Filler Filler 152-156 5 -

“1" or “2" “1" or “2" 157 1 N Special Comments, #1

*City *City 158-177 20 AN

*State *State 178-193 16 AN Special Comments, #2

*Zip Code *Zip Code 194-202 9 N

State Abbreviation State Abbreviation 203-204 2 A

Filler Filler 205-207 3 -

Date of Report Date of Report 208-213 6 N Date Reported to

Credit Reporting

Agency

*Account Number *Account Number *(1) Account Number 214-233 20 AN

*Taxpayer

Identification 

Number

*Taxpayer Identification Number *(2) Taxpayer Identification Number 234-242 9 N

* Federal Agency * Federal Agency *(17) Federal Creditor Agency 243-254 3 A Appendix 5

* Federal SubAgency* Federal Sub-Agency 246-248 3 AN Special Comments #3

* Program Code * Program Code 249-252 4 N Special Comments #4

Responsible

Person

Contact Person (16) Contact Person

- Name - Name 253-272 20 AN

- Phone - Phone 273-282 10 N Include Area Code

Rescheduled # of

Times

Dropped 283-284 2 N “0" Fill
Reporting Commercial Account Information

3-13

AUTOMATED REPORTING FORMAT FOR COMMERCIAL DEBT

OLD DATA

FIELD

NEW DATA FIELD RELATED DATA

ELEMENT

POSITION FIELD SIZE FIELD

TYPE

NOTE

Status Status (11) Status 285 1 A Table 1

If status is “R”,

explain

If status is “R,” explain 286-300 15 AN

Frequency of

Payment

Frequency (9) Frequency 301 1 A Table 2

Interest

- Computation Dropped 302-309 8 AN “0" fill

- Percent Dropped 310-313 4 A “0" Fill

Most Recent

Payment

Date of Most Recent Payment (14) Date of Most Recent Payment 314-319 6 N

Current Balance Current Balance (12) Amount of Debt Outstanding 320-331 12 N

Current Amount

Due

Dropped 332-343 12 N “O” Fill

Past Due Amount Past Due Amount (13) Past Due Amount 344-355 12 N

Date of

Occurrence

Date of Violation (15) Date of Violation 356-361 6 N

Late Charges

- Interest Dropped 362 1 A “0" Fill

- Administrative

Costs

Dropped 363 1 A “0" Fill

- Penalties Dropped 364 1 A “0" Fill

*Amount *Amount of Debt *(7) Amount of Debt 365-376 12 N

*Type of Loan *Type of Debt *(5)Type of Debt 377-378 2 A Table 3

Percent

Guaranteed

Dropped 379-383 5 N “0" Fill 

*Award Date *Date Debt Initiated *(6) Date Debt Initiated 384-389 6 N

Maturity Date Maturity Date (8) Maturity Date 390-395 6 N

Security Security (10) Security 396 1 N “S” if Secured

Amount Disbursed Dropped 397-408 12 N “0"Filled

Private Lender Dropped 409-443 35 AN “0" Fill

Multi-Liable Parties Dropped 444-445 2 N “0" Fill

Filler Filler 446-500 55 -
Reporting Commercial Account Information

3-14

Comments and Tables

Technical Comments

1. Header and trailer records, as requested by the credit reporting agency, may be supplied.

2. The fields for those categories requiring dates should be completely filled. For example,

January 1, 2001, would be entered as 010101.

3. Alpha fields should be right or left justified and zero (0) filled; numeric fields should be

right justified and zero (0) filled.

4. If data is not available for a specific numeric item of information, then fill the field with

nine(s) (9s). If data is not available for a specific alpha item of information, blank fill the

field.

5. Round cents to the nearest dollar. For example, a debt of $110.50 would be reported as

000000000111.

6. Unless otherwise noted, omit all special characters.

Special Comments

1. The number one (1) in this field indicates that the city/state information which follows is

contained in separate fields. The number two (2) in this field indicates that the city/state

information which follows is contained in the same field.

2. Either the full name of the state or its abbreviation may be provided.

3. This three (3) digit code will be determined by the agency and provided to the credit

reporting agencies.

4. The four (4) digit numeric code to be used in this field is the appropriation code, which is

the same as the account code used by the Department of the Treasury for the Monthly

Treasury Statement.
Reporting Commercial Account Information

3-15

Table 1

CURRENT ACTIVITY STATUS CODES

CODE EXPLANATION

A Current

B Delinquent

C In Default

D In Collection

E Contested

F In Litigation

G Foreclosure Started

H Foreclosed

I Repossessed Collateral

J Written Off/Currently Not Collectible

K Settled

L Paid In Full

M Paid In Full/Was Collection

N Paid In Full/Written Off

O Paid In Full/Was Repossession

P Cannot be Located

Q Written Off/Closed-Out or Discharged

R Other (Specify)

*If “R”, use positions 286-300 to explain
Reporting Commercial Account Information

3-16

Table 2

FREQUENCY OF PAYMENT

CODE EXPLANATION

M Monthly

Q Quarterly

S Semi-Annually

A Annually

I Irregularly

Table 3

TYPE OF DEBT

CODE EXPLANATION CODE EXPLANATION

LN Loan RE Rent

OV Overpayment RO Royalty

FE Fee DM Damages

FI Fine AD Audit Disallowances

PN Penalty SA Sales

CL Claim AV Advances

FO Forfeiture MI Miscellaneous

OT Other
A-1

Appendix 1

SECTION 3711(e) OF TITLE 31, UNITED STATES CODE

Title 31, MONEY AND FINANCE

SUBTITLE III - FINANCIAL MANAGEMENT

CHAPTER 37 -- CLAIMS

SUBCHAPTER 11-- CLAIMS OF THE UNITED STATES GOVERNMENT

31 U.S.C. § 3711

31 U.S.C. § 3711. Collection and Compromise

***

(e)(1) When trying to collect a claim of the Government under a law except the Internal Revenue

Code of 1986 (26 U.S.C. § 1 et seq.), the head of an executive, judicial, or legislative agency

shall disclose to a consumer reporting agency information from a system of records that a person

is responsible for a claim if–

(A) notice required by section 552a(e)(4) of title 5 indicates that information in the system

maybe disclosed to a consumer reporting agency; 

(B) the head of the agency has reviewed the claim and decided that the claim is valid and

overdue;

(C) the head of the agency has notified the person in writing--

 (i) that payment of the claim is overdue;

 (ii) that, within not less than 60 days after sending the notice, the head of the agency intends to

disclose to a consumer reporting agency that the person is responsible for the claim;

 (iii) of the specific information to be disclosed to the consumer reporting agency; and

 (iv) of the rights the person has to a complete explanation of the claim, to dispute information in

the records of the agency about the claim, and to administrative repeal or review of the claim;

(D) the person has not--
A-2

SECTION 3711(e) OF TITLE 31, UNITED STATES CODE

31 U.S.C. § 3711 (cont.)

 (i) repaid or agreed to repay the claim under a written repayment plan that the person has

signed and the head of the agency has agreed to; or

 (ii) filed for review of the claim under paragraph (2) of this subsection;

(E) the head of the agency has established procedures to–

 (i) disclose promptly, to reach consumer reporting agency to which the original disclosure was

made, a substantial change in the condition or amount of the claim;

 (ii) verify or correct promptly information about the claim on request of a consumer reporting

agency for verification of information disclosed; and

 (iii) get satisfactory assurances from each consumer reporting agency that the agency is complying

with all laws of the United States related to providing consumer credit information; and

(F) the information disclosed to the consumer reporting agency is limited to--

 (i) information necessary to establish the identity of the person, including name, address, and

taxpayer identification number;

 (ii) the amount, status, and history of the claim; and

 (iii) the agency or program under which the claim arose.

(2) Before disclosing information to a consumer reporting agency under paragraph (1) of this

subsection and at other times allowed by law, the head of an executive, judicial, or legislative

agency shall provide, on request of a person alleged by the agency to be responsible for the claim,

for a review of the obligation of the person, including an opportunity for reconsideration of the

initial decision on the claim.

(3) Before disclosing information to a consumer reporting agency under paragraph (1) of this

subsection, the head of an executive, judicial, or legislative agency shall take reasonable action to

locate a person for whom the head of the agency does not have a current address to send the notice

under paragraph (1)(c).
A-3

SECTION 3711(e) OF TITLE 31, UNITED STATES CODE

31 U.S.C. § 3711 (cont.)

(4) The head of each executive agency shall require, as a condition for insuring or guaranteeing any

loan, financing, or other extension of credit under any law to a person, that the lender provide

information relating to the extension of credit to consumer reporting agencies or commercial 

reporting agencies, as appropriate.

(5) The head of each executive agency may provide to a consumer reporting agency or commercial

reporting agency information from a system of records that a person is responsible for a claim which

is current, if notice required by section 552a(e)(4) of title 5 indicates that information in the system

may be disclosed to a consumer reporting agency or commercial reporting agency, respectively.

***
A-4

Page left intentionally blank.
A-5

Appendix 2

(MODEL)

MEMORANDA OF UNDERSTANDING

FOR

REPORTING OF CONSUMER AND COMMERCIAL DEBTS
A-6

MEMORANDUM OF UNDERSTANDING

For the Reporting of Consumer Debt

Introduction

This Memorandum of Understanding (MOU) is entered into by and between the undersigned

credit reporting agency (hereinafter referred to as Credit Agency) and Federal agency

(hereinafter referred to as the Government). This MOU is entered into in order to carry out the

purposes of the Debt Collection Act of 1982 (DCA), as amended by the Debt Collection

Improvement Act of 1996 (DCIA) and codified at 31 U.S.C. § 3711(e), which governs Federal

agency reporting of debt information to credit reporting agencies. This MOU is consistent with

the implementing guidelines of the DCA and DCIA, including the Federal Claims Collection

Standards (31 C.F.R. § 901.4), OMB Circular A-129, and the Treasury Guide to the Federal

Credit Bureau Program.

Operating Terms and Conditions

The Credit Agency and the Government hereto agree as follows:

A. Except as provided in Sections B and D below, the Government will:

1. Report, on a non-exclusive basis, information on its consumer debts (Account

Information) as described in the “Guide to the Federal Credit Bureau Program” (Guide).

2. Verify the accuracy of the Account Information in accordance with the DCA and DCIA

and its standard procedures for debt verification before reporting the Account

Information to the Credit Agency.

3. Provide Account Information on a monthly basis to the individual or position designated

in writing by the Credit Agency once notified by the Credit Agency that the initial

submission has been loaded. The Government will prepare the information in the

Associated Credit Bureaus Inc. METRO 2 format. (See Chapter 2 of the Guide -

“Reporting Consumer Account Information” for instructions on downloading the Metro 2

format).

4. Prepare the Account Information in the format mutually agreed to by both parties, on

magnetic tape, manually, or in any other form agreed to by both parties, and bear the cost

of preparing and providing the Account Information to the Credit Agency.
A-7

5. Send, under separate cover, a completed transmittal letter (form attached as Attachment

A) to the Credit Agency to inform it of the type, number and amount of accounts

included in the Account Information being submitted, prior to, or concurrent with, the

transmittal of the Account Information. 

6. Use reasonable efforts to provide prompt, accurate and complete Account Information to

the Credit Agency.

7. Investigate disputes and correct any erroneous Account Information promptly, in

accordance with the DCA and the DCIA.

8. Allow the Credit Agency to supply the Account Information to other credit agencies

consistent with applicable laws, so long as the Credit Agency supplies any such credit

agencies with the appropriate Government contact names, addresses and phone numbers

as the Government designates in writing and as may change from time to time.

B. The Government will not:

1. Be obligated to provide Account Information to the Credit Agency if it finds that the

Credit Agency is not loading the information into a data file and making it available on

credit reports that the Credit Agency produces.

2. Be liable to or indemnify the Credit Agency for any damages whatsoever arising from the 

Government’s failure to provide any Account Information, or if it fails to provide the

Account Information at any stated times. 

C. Except as Provided in Section D Below, The Credit Agency Will:

1. Within thirty (30) calendar days of receipt of the first submission of Account

Information, and within ten (10) business days of each subsequent submission,

incorporate the Account Information into its data files, credit reports, and other business

information products and services so long as the Credit Agency has no reason to believe

that the Account Information is inaccurate.

2. Provide the Government with exception reports listing which accounts have not been or

could not be loaded into the data files and the reason(s) therefore within seven (7)

business days of receipt of the Account Information.

3. Return, at its own cost, any magnetic tapes, computer disks, or other physical media, 

which the Government used to transmit Account Information, within ten (10) business

days of loading the Account Information contained in such media. 
A-8

4. Notify the Government that it has received the Account Information within three (3)

business days of such receipt by returning the “Receipt Acknowledgment” portion of the

transmittal letter sent with the transmittal to the individual or office indicated therein or

in such other manner as agreed to by the parties.

5. Comply at all times with all laws and regulations applicable to its operation as a credit

reporting agency.

6. Within thirty (30) days of being notified that any Account Information is erroneous, the

Credit Reporting Agency will correct or delete the Account Information and, pursuant to

section 611(7)(d) of the Fair Credit Reporting Act, will send notice of any such

correction or deletion of information to any previous consumer report recipients

identified and requested by the consumer, which may include credit grantors and other

consumer reporting agencies, as well as to any other credit reporting agency to which the

Credit Reporting Agency supplied such erroneous information.

7. Supply any and all credit reporting agencies receiving any Account Information from the

Credit Reporting Agency with the contact names and phone numbers contained in the

“Notices” section herein for purposes of notifying the Government about any disputes

about the Account Information.

8. Furnish an executed copy of this MOU to the Department of the Treasury, Financial

Management Service (FMS), Debt Management Services, Manager, Credit Bureau

Reporting Program at 401 14th Street, SW - Room 446, Washington, DC 20227.

General

D. The parties expressly acknowledge and agree that:

1. Any Account Information furnished by the Government shall be used solely to integrate

that information with similar information received from other private and public sector

sources. This information will be distributed by the Credit Reporting Agency consistent

with appropriate Federal laws. It shall not be used, sold, given, loaned or otherwise

furnished to any entity except the customers of the Credit Reporting Agency, the

consumer who is the subject of the information, or other credit bureaus.

2. The Government will not be liable to the Credit Reporting Agency for any damages as a

result of any failure to respond to the Credit Reporting Agency’s request to validate

previously reported Account Information within the required time period.

3. In the event that a third party brings a claim against the Credit Reporting Agency, the

Credit Reporting Agency will not bring a claim, in any form or at any time, against the

Government, its employees, or officers for the cost or liabilities incurred by the Credit
A-9

Reporting Agency defending any such claim.

4. In the event that a third party brings a claim against the Government, the Government

shall not bring a claim against a Credit Reporting Agency, its employees or officers for

the costs or liabilities incurred by the Government, except as provided in Paragraphs 5

and 10 below. The claims barred by this paragraph and paragraph B.2., above, include,

without limitations, any claims for breach of contract, tortious injury, violation of

constitutional entitlement, contribution, statutory law or common law, contractual or

equitable indemnity.

5. The Credit Reporting Agency will indemnify the Government for any loss or damage,

including attorney’s fees and costs, sustained by the Government as a result of the Credit

Reporting Agency’s negligent, reckless or wilful use of any Account Information in a

way or for a purpose not authorized or contemplated by this MOU.

6. The Government’s failure to respond to requests for verification of any Account

Information disputed by the debtor within the time period established by law, regulation

or this MOU may result in the complete elimination of the disputed account from the

Credit Reporting Agency’s files. 

7. The Government does not warrant the accuracy or completeness of the Account

Information reported to the Credit Reporting Agency and shall not be liable or

responsible for any loss or damage incurred by this Credit Reporting Agency or any other

credit reporting agency or bureau to which this Credit Reporting Agency supplies

information for any incomplete or inaccurate data.

8. There will be no payment by either party to the other for any services performed by the

Credit Reporting Agency as specified herein. 

9. The duties, rights and obligations of the parties pursuant to this MOU are solely limited

to the terms of this MOU. The Credit Reporting Agency is not, in any circumstances, the

agent, employee, servant, or deputy of the Government; nor shall the Credit Reporting

Agency make representations, actual or implied, thereof.

10. The Credit Reporting Agency will indemnify the Government for any damages

whatsoever arising out of an administrative or judicial finding that the Credit Reporting

Agency is the actual or apparent agency, employee, servant or deputy of the Government.

11. The Government and the Credit Reporting Agency each agree to furnish to FMS a

“Quarterly Report on Credit Reporting Agency Activity” (in the form found in

Attachment B) on April 15, July 15, October 15, and January 15 of each year. If any of

these dates is not a business day, the report will be furnished on the next business day. 

As indicated on Attachment B, the report shall describe the number of accounts referred

by the Government, the dollar value of the accounts (if known), and the number of
A-10

accounts returned as unprocessible to the Government. The report shall only cover

accounts reported by the Government and received by the Credit Reporting Agency

during the last month of the Government’s quarterly reporting cycle. (I.e., data should be

reported for the months of March, June, September and December.) The Credit

Reporting Agency may combine this report with the quarterly reports for other Federal

agencies’ consumer debt accounts.

Termination

Either party may terminate this MOU by providing thirty (30) calendar days written notice to the

other party as set forth under “Notices” below. In the event that the Government terminates this

MOU, it will request the return of any tapes then at the Credit Reporting Agency. The Credit

Reporting Agency agrees to delete all information supplied by the Government from its data files

within thirty (30) days of the date of termination if the Government requests that such

information be deleted.

Notices

All notices required to be made pursuant to this MOU shall be made in writing to the contacts

named below.

A. Inquiries or notifications regarding the Account Information shall be directed to:

Name:

Title:

Office:

Address:

Phone:

Fax.:

E-mail:

B. Notice of Termination of this MOU or any other communications regarding the

performance of this MOU shall be directed to:

Name:

Title:

Office:

Address:

Phone:

Fax.:

E-mail:
A-11

Effective Date

This MOU supercedes all previous agreements and shall commence on the date of signature by

the Government or on the effective date of the General Services Administration’s Federal Supply

Schedule for obtaining credit reports, whichever is later. Unless sooner terminated by either

party, this MOU shall terminate on the effective termination date of said Federal Supply

Schedule.

In witness whereof, the Credit Reporting Agency and the Government have caused this MOU to

be executed in multiple counterparts by their duly authorized representatives as indicated below. 

Each signatory represents and warrants, under penalty of perjury, to the best of his/her

knowledge and belief, that it has the delegated authority to sign on behalf of and legally obligate

the agency that each represents. If more than one Federal agency signs this agreement, the

signature of one Government agency will not bind any other signatory agency.

GOVERNMENT:

By: __________________________________ Date:_____________________

Name: __________________________________

(print name)

Title: __________________________________

Federal Agency:___________________________

Credit Reporting Agency:

By: __________________________________ Date:_____________________

Name: __________________________________

(print name)

Title: __________________________________

Company:________________________________
A-12

ATTACHMENT A

SAMPLE

TRANSMITTAL OF ACCOUNT INFORMATION

DATE TRANSMITTED:_____________________

TO: (full name and address) FROM: (full name and address)

Agency/bureau transmitting data: ______________________________________________

Type of accounts (circle one) consumer commercial

Number of accounts:____________________________

Dollar Value of Accounts:_________________________

Questions? Contact:__________________________________________________________

(name, phone number)

E-mail: _______________________ Fax: _____________________

-----------------------------------------------------------------------------------------------------------------

RECEIPT ACKNOWLEDGMENT

Agency: ________________________________________

Received by Credit Reporting Agency on: _______________________

(date)

By: (signature) ________________________________________

 (printed) _________________________________

Questions? Contact:______________________________________

(name, phone number)

E-mail:_____________________ Fax:__________________

Agency return address

here to show through

window envelope
A-13

ATTACHMENT B

Quarterly Report on Credit Reporting Agency Activity

Type of Accounts: ( ) Commercial ( ) Consumer

Reporting Period ____________________, 20___

AGENCY

REPORTING

# OF ACCOUNTS

REFERRED/PROCESSED

DOLLAR VALUE OF

ACCOUNTS (IF AVAILABLE)

# OF ACCOUNTS

RETURNED/

UNPROCESSED

SUBMIT TO: Department of the Treasury

Financial Management Service

Debt Management Services

401 14th Street, SW - Rm. 446

ATTN: Credit Bureau Reporting Project

Washington, D.C. 20227

SUBMITTED BY: ___________________________

 NAME

___________________________

AGENCY

___________________________

 TELEPHONE

_____________________________

E-MAIL
A-14

(MODEL)

MEMORANDUM OF UNDERSTANDING

For the Reporting of Commercial Debt

Introduction

This Memorandum of Understanding (MOU) is entered into by and between the undersigned

credit reporting agency (hereinafter referred to as Credit Reporting Agency) and Federal agency

(hereinafter referred to as the Government). This MOU is entered into in order to carry out the

purposes of the Debt Collection Act of 1982 (DCA), as amended by the Debt Collection

Improvement Act of 1996 (DCIA) and codified at 31 U.S.C. § 3711(e), which govern Federal

agency reporting of debt information to credit reporting agencies. This MOU is consistent with

the implementing guidelines of the DCA and DCIA, including the Federal Claims Collection

Standards (31 C.F.R. § 901.4), OMB Circular A-129, and the Treasury “Guide to the Federal

Credit Bureau Program.”

Operating Terms and Conditions

The Credit Reporting Agency and the Government hereto agree as follows:

A. Except as provided in Sections B and D below, the Government will:

1. Report, on a non-exclusive basis, information on its commercial debts (Account

Information) as described in the “Guide to the Federal Credit Bureau Program” (Guide).

2. Verify the accuracy of the Account Information in accordance with the DCA and DCIA

and its standard procedures for debt verification before reporting the Account

Information to the Credit Reporting Agency. 

3. Provide Account Information on a quarterly basis to the individual or position designated

in writing by the Credit Reporting Agency.

4. Prepare the Account Information in the format mutually agreed to by both parties, on

magnetic tape, manually, or in any other form agreed to by both parties, and bear the cost

of preparing and providing the Account Information to the Credit Reporting Agency. 

(See Chapter 3 of the Guide for Commercial reporting format.)
A-15

5. Send, under separate cover, a completed transmittal letter (form attached as Attachment

A) to the Credit Reporting Agency to inform it of the type, number and amount of

accounts included in the Account Information being submitted, prior to, or concurrent

with, the transmittal of the Account Information.

6. Use reasonable efforts to provide prompt, accurate and complete Account Information to

the Credit Reporting Agency.

7. Investigate disputes and correct any erroneous Account Information promptly, in

accordance with the DCA and the DCIA.

8. Allow the Credit Reporting Agency to supply the Account Information to other credit

agencies consistent with applicable laws, so long as the Credit Reporting Agency

supplies any such credit agencies with the appropriate Government contact names,

addresses and phone numbers as the Government designates in writing and as may

change from time to time.

B. The Government will not:

1. Be obligated to provide Account Information to the Credit Reporting Agency if it finds

that the Credit Reporting Agency is not loading the information into a data file and

making it available on credit reports that the Credit Reporting Agency produces.

2. Be liable to or indemnify the Credit Reporting Agency for any damages whatsoever

arising from the Government’s failure to provide any Account Information, or if it fails

to provide the Account Information at any stated times.

C. Except as Provided in Section D Below, The Credit Reporting Agency Will:

1. Within thirty (30) calendar days of receipt of the first submission of Account

Information, and within ten (10) business days of each subsequent submission,

incorporate the Account Information into its data files, credit reports, and other business

information products and services so long as the Credit Reporting Agency has no reason

to believe that the Account Information is inaccurate. 

2. Provide the Government with exception reports listing which accounts have not been or

could not be loaded into the data files and the reason(s) therefore within seven (7) 

business days of receipt of the Account Information.

3. Return, at its own cost, any magnetic tapes, computer disks, or other physical media, 

which the Government used to transmit Account Information, within ten (10) business

days of loading the Account Information contained in such media. 
A-16

4. Notify the Government that it has received the Account Information within three (3)

business days of such receipt by returning the “Receipt Acknowledgment” portion of the

transmittal letter sent with the transmittal to the individual or office indicated therein, or

in such other manner as agreed to by the parties.

5. Comply at all times with all laws and regulations applicable to its operation as a credit

reporting agency.

6. Within thirty (30) days of being notified that any Account Information is erroneous,

notify any credit reporting agency to which the Credit Reporting Agency supplied such

erroneous information that the Account Information was erroneous and must be

corrected.

7. Supply any and all credit reporting agencies receiving any Account Information from the

Credit Reporting Agency with the contact names and phone numbers contained in the

“Notices” section herein for purposes of notifying the Government about any disputes

about the Account Information.

8. Furnish an executed copy of this MOU to the Department of the Treasury, Financial

Management Service, Debt Management Services, Manager, Credit Bureau Reporting

Program at 401 14th Street, SW - Room 446, Washington, DC 20227.

General

D. The parties expressly acknowledge and agree that:

1. Any Account Information furnished by the Government shall be used solely to integrate

that information with similar information received from other private and public sector

sources. This information will be distributed by the Credit Reporting Agency consistent

with appropriate Federal laws. It shall not be used, sold, given, loaned or otherwise

furnished to any entity except the customers of the Credit Reporting Agency, the

consumer who is the subject of the information, or other credit bureaus.

2. The Government will not be liable to the Credit Reporting Agency for any damages as a

result of any failure to respond to the Credit Reporting Agency’s request to validate

previously reported Account Information within the required time period.

3. In the event that a third party brings a claim against the Credit Reporting Agency, the

Credit Reporting Agency will not bring a claim, in any form or at any time, against the

Government, its employees, or officers for the cost or liabilities incurred by the Credit

Reporting Agency defending any such claim.
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4. In the event that a third party brings a claim against the Government, the Government

shall not bring a claim against a Credit Reporting Agency, its employees or officers for

the costs or liabilities incurred by the Government, except as provided in Paragraphs 5

and 10 below. The claims barred by this paragraph and paragraph B.2., above, include,

without limitations, any claims for breach of contract, tortuous injury, violation of

constitutional entitlement, contribution, statutory law or common law, contractual or

equitable indemnity.

5. The Credit Reporting Agency will indemnify the Government for any loss or damage,

including attorney’s fees and costs, sustained by the Government as a result of the Credit

Reporting Agency’s negligent, reckless or wilful use of any Account Information in a

way or for a purpose not authorized or contemplated by this MOU.

6. The Government’s failure to respond to requests for verification of any Account

Information disputed by the debtor within the time period established by law, regulation

or this MOU may result in the complete elimination of the disputed account from the

Credit Reporting Agency’s files. 

7. The Government does not warrant the accuracy or completeness of the Account

Information reported to the Credit Reporting Agency and shall not be liable or

responsible for any loss or damage incurred by this Credit Reporting Agency or any other

credit reporting agency or bureau to which this Credit Reporting Agency supplies

information for any incomplete or inaccurate data.

8. There will be no payment by either party to the other for any services performed by the

Credit Reporting Agency as specified herein.

9. The duties, rights and obligations of the parties pursuant to this MOU are solely limited

to the terms of this MOU. The Credit Reporting Agency is not, in any circumstances, the

agent, employee, servant, or deputy of the Government; nor shall the Credit Reporting

Agency make representations, actual or implied, thereof.

10. The Credit Reporting Agency will indemnify the Government for any damages

whatsoever arising out of an administrative or judicial finding that the Credit Reporting

Agency is the actual or apparent agency, employee, servant or deputy of the Government.

11. The Government and the Credit Reporting Agency each agree to furnish to FMS a

“Quarterly Report on Credit Reporting Agency Activity” (in the form found in

Attachment B) on April 15, July 15, October 15, and January 15 of each year. If any of

these dates is not a business day, the report will be furnished on the next business day. 

As indicated on Attachment B, the report shall describe the number of accounts referred

by the Government, the dollar value of the accounts (if known), and the number of

accounts returned as unprocessible to the Government. The report shall only cover

accounts reported by the Government and received by the Credit Reporting Agency
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during the last month of the Government’s quarterly reporting cycle. (I.e., data should be

reported for the months of March, June, September and December.) The Credit

Reporting Agency may combine this report with the quarterly reports for other Federal

agencies’ commercial debt accounts.

Termination

Either party may terminate this MOU by providing thirty (30) calendar days written notice to the

other party as set forth under “Notices” below. In the event that the Government terminates this

MOU, it will request the return of any tapes then at the Credit Reporting Agency. The Credit

Reporting Agency agrees to delete all information supplied by the Government from its data files

within thirty (30) days of the date of termination if the Government requests that such

information be deleted.

Notices

All notices required to be made pursuant to this MOU shall be made in writing to the contacts

named below.

A. Inquiries or notifications regarding the Account Information shall be directed to:

Name:

Title:

Office:

Address:

Phone:

Fax.:

E-mail:

B. Notice of Termination of this MOU or any other communications regarding the

performance of this MOU shall be directed to: 

Name:

Title:

Office:

Address:

Phone:

Fax.:

E-mail:
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Effective Date

This MOU supercedes all previous agreements and shall commence on the date of signature by

the Government or on the effective date of the General Services Administration’s Federal Supply

Schedule for obtaining credit reports, whichever is later. Unless sooner terminated by either

party, this MOU shall terminate on the effective termination date of said Federal Supply

Schedule.

In witness whereof, the Credit Reporting Agency and the Government have caused this MOU to

be executed in multiple counterparts by their duly authorized representatives as indicated below. 

Each signatory represents and warrants, under penalty of perjury, to the best of his/her

knowledge and belief, that it has the delegated authority to sign on behalf of and legally obligate

the agency that each represents. If more than one Federal agency signs this agreement, the

signature of one Government agency will not bind any other signatory agency.

GOVERNMENT:

By: __________________________________ Date:_____________________

Name: __________________________________

(print name)

Title: __________________________________

Federal Agency:___________________________

Credit Reporting Agency:

By: __________________________________ Date:_____________________

Name: __________________________________

(print name)

Title: __________________________________

Company: _______________________________
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ATTACHMENT A

SAMPLE

TRANSMITTAL OF ACCOUNT INFORMATION

DATE TRANSMITTED:_____________________

TO: (full name and address) FROM: (full name and address)

Agency/bureau transmitting data: ______________________________________________

Type of accounts (circle one) consumer commercial

Number of accounts:____________________________

Dollar Value of Accounts:_________________________

Questions? Contact:__________________________________________________________

(name, phone number)

E-mail: __________________________Fax: ____________________________

-----------------------------------------------------------------------------------------------------------------

RECEIPT ACKNOWLEDGMENT

Agency: ________________________________________

Received by Repository/Credit Bureau on: _______________________

(date)

By: (signature) ________________________________________

 (printed) ________________________________________

Questions? Contact:__________________________________________

(name, phone number)

E-mail: ___________________________ Fax:______________________

Agency return address

here to show through window envelope
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ATTACHMENT B

Quarterly 

Report on Credit Reporting Agency Activity

Type of Accounts: ( ) Commercial ( ) Consumer

REPORTING AGENCY # OF ACCOUNTS

REFERRED

DOLLAR VALUE OF

ACCOUNTS (If Available)

# OF ACCOUNTS

RETURNED/UNPROCESSED

SUBMIT TO: Department of the Treasury

Financial Management Service

Debt Management Services

401 14th Street, SW - Rm. 446

ATTN: Credit Bureau Reporting Project

Washington, D.C. 20227

SUBMITTED BY: ___________________________

NAME

___________________________

AGENCY

___________________________

TELEPHONE

_____________________________

E-MAIL
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A-23

Appendix 3

CREDIT REPORTING AGENCY CONTACTS (November 2005)

DESIGNATED CREDIT REPORTING AGENCIES

COMMERCIAL ACCOUNTS CONSUMER ACCOUNTS

Dun & Bradstreet

Jeb Magruder

(610) 882-6333

(610) 807-1045 (fax)

Magruderj@dnb.com

Michael Caskin

(703) 807-5076

(866) 319-9522 (fax)

caskinm@dnb.com

Experian 

Brian Lause

(714) 830-5325

(714) 830-2599 (fax)

Brian.Lause@experian.com 

Equifax

*Melissa Thomas

(410) 342-6765

(410) 342-6472 (fax)

melissa.thomas@equifax.com

Experian

Roxie Lepich

(714) 830-5503

(714) 830-2906 (fax)

Roxie.lepich@experian.com

Trans Union

*Chad Cory 

(312) 985-3024

(312) 466-7994 (fax)

ccory@transunion.com

Equifax

Jeannine Suda

(770) 740-6730

(770) 740-6802 (fax)

Jeannine.Suda@equifax.com

INNOVIS Data Solutions

*Jeff Van Schoyck 

(614) 326-5691

(614) 538-6102 (fax)

jeff.vanschoyck@innovis.com

DEPARTMENT OF THE TREASURY - FINANCIAL MANAGEMENT SERVICE

DEBT MANAGEMENT SERVICES-

**DMS - Senior Analyst -Tom Kobielus (202) 874-7359

**DMS - Senior Analyst - Matt Lorelli (202) 874-8626

FAX Number (202) 874-7494

DEBT MANAGEMENT SERVICES 

(Debt Collection/Cross Servicing)

***Contact: Suzanne Renda, Financial Program Specialist (suzanne.renda@fms.treas.gov)

(205) 912-6331

(205) 912-6322 (fax)

* New Contact

**Liaison for Federal and Credit Reporting Agencies

***Liaison for DMS-Cross-servicing of Agency Debts Transferred to Treasury for Collection
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A-25

Appendix 4

(SAMPLE)

FMS DEBT MANAGEMENT SERVICES

CROSS-SERVICING IMPLEMENTATION

AGENCY PROFILE FORM

Agency Information

Name: _______________________________

Address Line 1:_______________________________

Address Line 2:_______________________________

City, State: _______________________________

Zip Code (5 digit + 4, if known):_________________

Bureau Information

Name: ______________________________

Address Line 1: ______________________________

Address Line 2: ______________________________

City, State: ______________________________

Zip Code (5 digit + 4, if known):_________________ 

TIN ______________________________

Bureau Office Information

Name: ______________________________

Address Line 1: ______________________________

Address Line 2: ______________________________

City, State: ______________________________

Zip Code (5 digit + 4, if known):_________________

Agency Liaison Code (ALC) #: _________________

Contact Information Alternate Contact Information

Name: _________________ _________________________

Phone No.: _________________ _________________________

FAX No.: _________________ _________________________

Email Address: _________________ _________________________

OPAC Contact Name

Name: _________________

Phone: _________________

FAX No.: _________________

Email Address: ________________

For FMS Use Only: Office Code __________________________________
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Program Information

Program Name (s): ___________________________________

Authorizing Statute: ___________________________________

Program Classification (Circle One)

Fines/Penalties Business Education Foreign

Medical Housing State/Local Other (specify name) ___________

Maximum Compromise Amount: ___________*Maximum Compromise Percent: ________*

*Provide the maximum amount agency will allow Treasury to forgive without concurrence.

Statutory Authority for Compromises Greater than $100,000.00* Yes_____ No _____

*Can agency approve compromises greater than $100,000.00 without DOJ approval?

Minimum Monthly Repayment Amount (Installments): __________________

Maximum Number of Months for Repayment: __________________

Eligible for the Following Collection Actions (T next to whichever applies)

Referral to Private Collection Agency (PCA) Yes_______ No ______

Referral to Treasury Offset Program (TOP) Yes ______ No ______

Referral to Tax Refund Offset Program (TROP), &

Salary Offset included in Referral to TOP

Administrative Wage Garnishment* Yes ______ No ______

*If yes, provide date and citation of hearing procedure regulation that your agency published.

______________________________________________________________________________

Credit Bureau Reporting* Yes ______ No ______

 *If checked yes, provide name your agency used for Credit Bureau reporting.

Agency Name:__________________________________________________(30 Characters) 

Filing of 1099-C:

Compromised and Discharged debts

over $600 Yes ______ No ______

• FMS will obtain Agency concurrence on all DOJ referrals, if checked yes.

Additional Fees (T next to whichever applies)

Add FMS/DMS fees to debt Yes ______ No ______

Add Private Collection Agency (PCA) fees Yes ______ No ______

Accruals (T next to whichever applies)

Continue to accrue financing interest* Yes ______ No ______

Continue to accrue late interest* Yes ______ No ______

Continue to accrue penalty Yes ______ No ______

*An agency cannot charge both financing interest and late interest. Financing interest is interest assessed for loans.

ALL FIELDS ON THIS FORM ARE MANDATORY.

Please note: An Agency may duplicate this form as necessary to cover different requirements for different

programs.

For FMS Use Only: Program Code: ____________________
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Appendix 5

AGENCY IDENTIFIERS

COMMONLY USED FEDERAL AGENCY CODES*

 AGENCY CODE

1. AGRICULTURE US AGRICULTURE

2. COMMERCE US COMMERCE

3. DEFENSE US DEPT OF DEFENSE

4. EDUCATION US EDUCATION

5. ENERGY US DEPT OF ENERGY

6. HEALTH & HUMAN SERVICES USHHS

7. HOUSING AND URBAN DEV. USHUD

8. INTERIOR US INTERIOR

9. JUSTICE US JUSTICE DEPT

10. LABOR US LABOR DEPT

11. STATE US STATE DEPT

12. AIR FORCE US AIR FORCE

13. ARMY USARMY

14. NAVY USNAVY

15. TRANSPORTATION USDOT

16. TREASURY USTREAS

17. VETERANS AFFAIRS US VETERANS AFFAIRS

18. AGENCY FOR INTERNATIONAL DEV. USAID

19. CENTRAL INTELLIGENCE AGENCY USCIA

20. CONGRESSIONAL BUDGET OFFICE USCBO

21. COMMODITY CREDIT CORPORATION USCCC

22. COMMODITY FUTURES TRADING CORP USCFTC
A-28

23. ENVIRONMENTAL PROTECTION AGENCY USEPA

24. EXECUTIVE OFFICE OF THE PRESIDENT USEOP

25. EXPORT-IMPORT BANK OF THE U.S. USEXIM

26. FARM CREDIT ADMINISTRATION USFCA

27. FEDERAL COMMUNICATIONS COMM. USFCC

28. FEDERAL DEPOSIT INSURANCE CORP. USFDIC

29. FEDERAL EMERGENCY MANAGEMENT AGENCY USFEMA

30. FEDERAL TRADE COMMISSION USFTC

31. GENERAL ACCOUNTING OFFICE USGAO

32. GENERAL SERVICES ADMINISTRATION USGSA

33. GOVERNMENT PRINTING OFFICE USGPO

34. LIBRARY OF CONGRESS USLOC

35. NAT. AERONAUTICS AND SPACE ADMIN USNASA 

36. NATIONAL ARCHIVES AND RECORDS US NARA

37. NATIONAL CREDIT UNION ADMIN USNCUA

38. NATIONAL SCIENCE FOUNDATION USNSF

39. NATIONAL TRANSPORTATION SAFETY USNTSB

40. NUCLEAR REGULATORY COMM. USNRC

41. OFFICE OF MANAGEMENT AND BUDGET USOMB

42. OFFICE OF PERSONNEL MANAGEMENT USOPM

43. OTHER BOARDS AND COMMISSIONS OTHR BOARDS CMMSNS

44. OTHER LEGISLATIVE AND JUDICIAL OTHR LGSLTVE JUDCL

45. PENSION BENEFIT GUARANTY CORP USPBGC 

46. RAILROAD RETIREMENT BOARD USRRB

47. SECURITIES AND EXCHANGE COMM. USSEC

48. SMALL BUSINESS ADMINISTRATION USSBA

49. SMITHSONIAN INSTITUTION US SMITHSONIAN 
A-29

50. SOCIAL SECURITY ADMINISTRATION USSSA

51. TENNESSEE VALLEY AUTHORITY USTVA

52. U.S. INFORMATION AGENCY USINFO AGENCY

53. U.S. POSTAL SERVICE USPOSTAL SERVICE

54. ARMY AND AIR FORCE EXCHANGE SERVICE USAAFEXS

55. BOARD OF GOV. OF THE FED RESERVE SYSTEM FRBGOV

56. FANNIE MAE FANNIE MAE

57. FARM CREDIT SYSTEM USFCS

58. FEDERAL HOME LOAN BANKS USFHLB

59. FEDERAL RESERVE BANKS USFRB

60. FEDERAL RETIREMENT THRIFT INVESTMENT BOARD USFRTIB

61. FINANCING CORPORATION US FINANCING CORP

62. FREDDIE MAC FREDDIE MAC

63. MARINE CORPS EXCHANGE USMCEX

64. NAVY EXCHANGE SERVICE COMMAND USNVY SERV. COM

65. RESOLUTION FUNDING CORPORATION USRFC

66. SALLIE MAE SALLIE MAE

67. THRIFT SAVINGS FUND USTSF

68. EQUAL EMPLOYMENT OPPORTUNITY USEEOC

69. FEDERAL LABOR RELATIONS AUTHORITY USFLRA

70. NATIONAL FOUNDATION. OF ARTS & HMNTS USNFAH

71. CONSUMER PRODUCT SAFETY COMM. USCPSC

72. OVERSEAS PRIVATE INVESTMENT CORP. USOPIC

73. MARTIN LUTHER KING HOLIDAY COMM. MLKHOLIDAY COMM

74. NEIGHBORHOOD REINVESTMENT CORP. NREINVESTMNT CORP

75. OCCUPATIONAL SAFETY AND HEALTH REVIEW COMM. USOSHRC

76. PANAMA CANAL COMMISSION USPCC
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77. OTHER AGENCIES OTHER AGENCIES

78. FEDERAL ELECTION COMMISSION USFEC

79. OFFICE OF GOVERNMENT ETHICS USOGE

80. U.S. COURT OF VETERANS APPEALS US COURTS VA APPEALS

81. U.S. COURTS USCOURTS

82. TREASURY CROSS-SERVICING DEBT COLLECTION USTREAS DMSC

*This list is not all inclusive