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Update on H.R. 22

Sharon Edmondson, Washington Legislative Team Member | November 24, 2015
Congress Reviews Debt Collection Provision As Complaints Plague Companies

More details have come to light regarding the reinstating of private contractors to collect overdue tax debt with the addition to H.R. 22, Surface Transportation Reauthorization and Reform Act of 2015, provisions requiring the IRS to enter into a contract with one or more companies for the collection of outstanding inactive tax receivables, tax debt too difficult or too small to pursue, or in which more than one year has passed without interaction with the tax payer.

The bill also requires that the IRS give contract priority to the four debt collection agencies on the Bureau of Fiscal Services Debt Collection Contract Schedule. According to the Treasury’s website, two New York companies-ConServe Inc. and Pioneer Credit Recovery Inc.–are included. The CBE Group of Waterloo, Iowa and Performant Financial Corporation of Pleasanton, CA round out the list.

According to the Department of Education and CFPB complaint database, the above companies have received many complaints related to debt collection between 2013 and late 2015. The data illustrates the frequency of the complaints which was one of the problems in the past when the IRS tried to employ private companies to collect debts.

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