Private Collection Agencies: Diversified Collection Services, Inc., Needs to Improve Compliance with FMS's Debt Compromise Requirements

摘要

We audited compliance by Diversified Collection Services, Inc. (Diversified), a private collection agency (PCA) under contract with the Financial Management Service (FMS), with requirements for debt compromise. Our objective was to determine, for compromises on delinquent federal nontax debt, whether Diversified is (1) following PCA contract requirements, including (a) attempting to collect the full amount due before considering a compromise and (b) compromising at authorized levels; and (2) documenting each compromise adequately, providing proper justification, and retaining evidence for the required period.