What is the Debt Collection Improvement Act?

The Debt Collection Improvement Act (DCIA) is a federal law passed by the United States Congress in 1996. It is intended to help the government collect overdue debt, such as taxes, child support, and student loan payments. The DCIA requires that the government take certain steps to collect unpaid debt, including using the services of private debt collectors. It also sets up a process for court orders to garnish wages or attach property when necessary. The DCIA sets out the basic rights of debtors and creditors, including the right of debtors to be notified of their rights under the law. It also requires that debt collectors conduct their business in accordance with certain rules, such as notifying the debtor of their rights before initiating any collection actions. Additionally, the DCIA provides the government with authority to use a variety of methods to collect unpaid debt. These methods can include the seizure of wages and other assets, the garnishment of tax refunds, and even the interception of Social Security payments. In Washington, the DCIA is enforced by the Department of Financial Institutions. The DCIA was designed to increase the government’s ability to collect unpaid debt, provide debtors with greater protections, and ensure that collections are conducted in compliance with federal regulations.

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What is the Debt Collection Improvement Act?

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