Debt Collection Improvement Act

The Debt Collection Improvement Act (DCIA), enacted in 1996, aims to enhance the U.S. government's ability to collect debts owed to it. It introduced measures like requiring federal agencies to use the Treasury Department for debt collection, which includes offsetting tax refunds to recover owed funds. The act also allows for more efficient tracking of debts and increases penalties for those who fail to pay. Overall, the DCIA seeks to ensure that public debts are collected more effectively, helping maintain the integrity of federal financial systems.