Summary: S.2620 — 99th Congress (1985-1986)All Information (Except Text)

There is one summary for S.2620. Bill summaries are authored by CRS.

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Introduced in Senate (06/26/1986)

Federal Credit Management and Debt Collection Improvements Act of 1986 - Establishes in the Department of the Treasury an Under Secretary of the Treasury for Debt Collection and Credit Management, who shall be appointed by the President, by and with the consent of the Senate. Sets forth the functions of the Under Secretary with respect to establishing and implementing a comprehensive Federal debt collection and credit management plan. Directs the Comptroller General to report to the Congress an analysis of such plan, together with comments.

Requires executive agency proposals for new credit programs to contain an explicit statement of any subsidies involved.

Requires interest rates in new direct loan programs to be related to market rates for comparable private sector loan programs.

Requires the assessment of loan origination and application fees to defray administrative costs and costs of defaulted loans.

Prohibits loans to persons who are delinquent in debt payments to the United States. Sets forth the circumstances under which a person who has defaulted on a prior loan may be allowed another loan. Requires loan contracts to contain default and acceleration clauses. Requires each loan applicant to be provided with a written notice specifying Federal debt collection policies and practices.

Directs the President to provide for a study of private sector alternatives to Federal loan programs.

Directs the Secretary of the Treasury to establish Federal credit management policies and promulgate regulations to implement this Act.

Requires each executive agency to report to the Congress, within one year of enactment of this Act, on its delinquency and default standards.

Directs the Comptroller General, within two years of enactment of this Act, to audit agency credit programs.

Requires agencies to conform to regulations under this Act and the Federal Claims Collection Act of 1966 (as amended by the Debt Collection Act of 1982) within one year of enactment of this Act.

Establishes a collection target amount of $15 billion during the period beginning October 1, 1986, and ending September 30, 1989. Increases an agency's funding when it exceeds its debt collection target, and decreases such funding for not meeting its target. Directs the Secretary of the Treasury to promulgate regulations to assist agencies in developing proposals for debt collection targets.

Requires the use of credit bureaus and private collection agencies to recover indebtedness owed the Federal Government.

Provides for routine adjustments of Federal pay for non-controversial overpayments.

Amends the Internal Revenue Code to authorize agencies to use Internal Revenue Service information in debt collection.

Requires the inclusion of debt collection data in the budget process.

Directs each agency head to investigate the feasibility and cost effectiveness of selling debts to the private sector.

Makes State laws inapplicable with respect to time limitations for bringing legal actions on debts owed to the United States.