The transcript of the video follows below for further review.
The Debt Collection Improvement Act of 1996 requires the the Department of the Treasury (DOT) to maintain a schedule of private collection agencies (PCAs), which are private sector companies with expertise in the area of debt collection, to assist the government in its debt collection efforts. As part of the Cross-Servicing program (wherein debts owed to government agencies such as the SBA are referred to the DOT for collection) the DOT attempts to collect delinquent debt through several means, including demand letters, telephone calls, the Treasury Offset Program (TOP), administrative wage garnishment, and credit bureau reporting. Once the DOT has at the very least sent a demand letter and possibly tried other collection efforts, the DOT refers debt collection to one of four PCAs. The activities of the PCAs are monitored by the personnel of the Receivables Management and Debt Services Division of Debt Management Services (DMS).
What is a private collection agency? A private collection agency (PCA) is a private sector company specializing in the collection of delinquent debt. A PCA will attempt to find and contact a debtor by searching various databases, making telephone calls, and sending collection letters. Once the debtor is located and contacted, the PCA will encourage the debtor to satisfy the debt. A PCA may help the DOT resolve the debts through negotiating payment in full, a payment agreement, utilizing administrative wage garnishment, or finding that the debt may be resolved administratively. Incredibly, often times dealing with a PCA is more productive than dealing directly with the DOT.
Fiscal Service awards PCA Task Orders. Fiscal Service awards Task Orders to PCAs for debt collection services under a General Services Administration Schedule. Fiscal Services’s current Task Orders to enlist the services of PCA contractors became effective on March 12, 2012. These Task Orders were awarded in order to increase the recovery of and resolve delinquent non-tax federal debts. The Task Orders were awarded for one base year, with four one-year options available. Fiscal Service awarded the following contractors a debt collection Task Order to provide delinquent debt collection services:
The CBE Group, Inc.
ConServe, Inc.
Performant Recovery, Inc.
Pioneer Credit Recovery, Inc.
PCA regulation. The collection efforts of the PCAs are governed by various federal and state laws, including, but not limited to, the Fair Debt Collection Practices Act (FDCPA), the Federal Claims Collection Standards (FCCS), and the Privacy Act. If the first PCA is unable to successfully resolve or collect a debt, the debt is then referred to a second PCA. The PCAs are compensated on a performance basis.
If you have defaulted on an SBA loan please contact Protect Law Group at 1-888-756-9969 for a consultation with one of our SBA workout attorneys or contact us online.
We analyze your SBA loan problems and advise you on potential solutions such as an SBA offer in compromise for your SBA loan default.
Millions of Dollars in SBA Debts Resolved via Offer in Compromise and Negotiated Repayment Agreements without our Clients filing for Bankruptcy or Facing Home Foreclosure
Millions of Dollars in Treasury Debts Defended Against via AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers and Negotiated Repayment Agreements
Our Attorneys are Authorized by the Agency Practice Act to Represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.
The client personally guaranteed an SBA 504 loan balance of $375,000. Debt had been cross-referred to the Treasury at the time we got involved with the case. We successfully had debt recalled to the SBA where we then presented an SBA OIC that was accepted for $58,000.
Clients personally guaranteed SBA 7(a) loan balance of over $300,000. Clients also pledged their homes as additional collateral. SBA OIC accepted $87,000 with the full lien release against the home.
Clients personally guaranteed an SBA 7(a) loan that was referred to the Department of Treasury for collection. Treasury claimed our clients owed over $220,000 once it added its statutory collection fees and interest. We were able to negotiate a significant reduction of the total claimed amount from $220,000 to $119,000, saving the clients over $100,000 by arguing for a waiver of the statutory 28%-30% administrative fees and costs.
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