(a) USADF has entered into a cross-servicing agreement with the Bureau of Fiscal Services (BFS) of the Department of Treasury. BFS will take appropriate action to collect and/or compromise transferred debts in accordance with applicable statutory and regulatory requirements. BFS may take any of the following collection actions on behalf of USADF:

(1) Send demand letters on U.S. Treasury letterhead and telephone debtors;

(2) Refer accounts to credit bureaus;

(3) Purchase credit reports to assist in the collection effort;

(4) Refer accounts for offset, including tax refund, Federal employee salary, administrative wage garnishment, and general administrative offset under the Treasury Offset Program;

(5) Refer accounts to private collection agencies;

(6) Refer accounts to the Department of Justice for litigation;

(7) Report written off or discharged debt to the Internal Revenue Service (IRS) on the appropriate Form 1099;

(8) Take any additional steps necessary to enforce recovery; and

(9) Terminate collection action, as appropriate.

(b) BFS will maintain records on debt transferred to it, assure that accounts are updated as necessary, and modify its delinquent debt and debtor records with information obtained from its skip tracking and asset-location services as appropriate. In the event that a referred debtor disputes the validity of a debt or any terms and conditions related to any debt not reduced by judgment, BFS may return the disputed debt to USADF for its determination of debt validity.