Background

70.2 – Background (Rev. 12438; Issued: 01-04-24; Effective: 02-06-24; Implementation: 02-06-24) The DATA Act which amended the DCIA requires Federal agencies to refer eligible delinquent debt to a Treasury designated Debt Collection Center (DCC) for cross servicing and/or Treasury Offset Program (TOP). The CMS is mandated to refer all eligible delinquent debt, over 120 calendar days delinquent, to Treasury for cross-servicing. The CMS has the option of referring debt before it becomes 121 calendar days delinquent but only after the MSP Contractor has notified the debtor of CMS’s intent to refer the debt to Treasury for cross-servicing. Delinquency status occurs when a debt is still owed (either in full or partially) and is at least one day after the repayment date given within the demand letter. For example, a GHP demand dated 12/1/05 gives the debtor 60 calendar days to respond, or interest will accrue and be assessed from the date of the demand. If the debt is still unresolved as of 2/2/06 (63 days after the date of demand) the debt is considered 3 days delinquent. (See § 70.4 of this Chapter for further clarification of delinquency).