Can government agencies use private debt collectors?
Yes. One example is the Internal Revenue Service (IRS). In 2006 the IRS made a rather controversial announcement when the agency said it would contract with private collectors to recover some delinquent tax accounts. However, it terminated this practice in 2009. Another example is the U.S. Department of Education. If you are in arrears on a student loan guaranteed by the federal government, you may hear from a private collection agency. More on the Department’s use of private debt collectors can be found at www.ed.gov/offices/OSFAP/DCS/faqs.html#CAs. The Department of Education states that collections by private firms are subject to the FDCPA as well as the Privacy Act. Debt collections by private debt agencies are not limited to the federal government. For example, a city may contract with a private debt collector to recover overdue parking fines. If you are contacted by a debt collector that claims to be under contract with any government agency, it is a good idea to verify the colle
