Out-of-Service Debt
Private Collection Agencies
Frequently Asked Questions

1. I've been contacted by the collection agency, but would rather pay your agency. Is this possible?
2. Why is my debt amount higher now that it is at the collection agency?
3. I'm paying the collection agency and you still took my income tax refund. Why?
4. Why do you not have a record of me paying the collection agency in full?
5. Why do you not have a record of me paying the collection agency in full?
6. Why do you not have a record of me paying the collection agency in full?

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1. I've been contacted by the collection agency, but would rather pay your agency. Is this possible?

Answer:   No. Under the guidance of the Treasury Department and established contract with the collection agencies, we are prohibited from interfering in their collection process. Referral to a private collection agency obligates us to forward any personal payments received to the appropriate collection agency.
2. Why is my debt amount higher now that it is at the collection agency?

Answer:   Private collection agencies are authorized to charge additional collection fees.
3. I'm paying the collection agency and you still took my income tax refund. Why?

Answer:   Public Law authorizes us to continue with administrative actions, such as a tax offset, until the debt is satisfied. As payments are received, the collection agency will be notified programmatically so your outstanding balance will be adjusted. If an overpayment occurs we will process a refund to you.
4. Why do you not have a record of me paying the collection agency in full?

Answer:   There is a short delay between the time the collection agency receives your payment and its processing into our system. The collection agency notifies the Treasury Department of any collection, and in turn, they forward the payment to us in approximately 3–4 weeks.
5. I do not feel the collection agency has treated me fairly. What can I do?

Answer:   You may submit your concerns in writing to us. The information received from you will be forwarded to the Treasury Department. Our mailing address is:

DFAS-PODC/DE,
6760 E. Irvington Place,
Denver CO 80279-7500.

Our fax number is 303-676-5607. If email is more convenient, you may use our email form.
6. Your customer service representative advised me to contact the collection agency to make payment arrangements. Why are they saying the account was returned to DFAS?

Answer:   When the collection agency concludes their actions, they will return the account to us. We must await official notification from the Treasury Department before collection process resumes. It may take approximately 2 weeks before we are able to confirm the information you provided.