[Congressional Record Volume 142, Number 39 (Wednesday, March 20, 1996)]
[House]
[Pages H2471-H2472]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PRIVATE CONTRACTOR COLLECTS THOUSANDS FOR GOVERNMENT FOR ONLY $54
(Mr. EHRLICH asked and was given permission to address the House for
1 minute and to revise and extend his remarks.)
Mr. EHRLICH. Mr. Speaker, 3 weeks ago the Federal Government finally
got around to using the services of the National Credit Management
Corp. of Hunt Valley, MD, a company located in my congressional
district.
Under the terms of the contract, NCMC would send collection letters
to companies and individuals that owed the Government money.
The Nuclear Regulatory Commission turned over 100 accounts to NCMC
and paid the company $54 for the entire project. These were accounts
that the NRC had previously tried unsuccessfully to collect. In just 3
weeks, those initial 100 letters sent out by NCMC have brought in
$63,000.
What I would like to know, Mr. Speaker, is why every agency of the
Federal Government is not taking advantage of private debt-collection
services? More than $50 billion in nontax
[[Page H2472]]
debt is owed to the Federal Government. Another $60 to $70 billion in
tax debt is owed to the IRS. Every day the Government does not collect
its delinquent debt costs taxpayers millions of dollars, while many
companies, such as the National Credit Management Corp., stand ready to
collect that debt.
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