Vendor Management, Payments, and Collections (VMPC) FAQ
Guidance for FAQ regarding Collections and Pay.gov
Program Area: Vendor Management, Payments, and Collections (VMPC)
Question: What happens if I am unable to pay my debt within 90 days?
Answer: If your debt remains unpaid 140 calendar days from the date of this Initial Invoice, your debt will be referred to the Treasury's Debt Management Services for Cross Servicing and Offset of Federal Payments. Your debt will be referred under 31 U.S.C. Section 3711(g). The Treasury will add additional administrative fees of up to 30 percent and accrue the required penalty charge of 6 percent per year on any amount outstanding. Interest will also continue to accrue. The Treasury's Debt Management Services will use various tools to collect the debt, including offset of Federal payments, invoices, phone calls, referral to a private collection agency, and referral to the U.S. Department of Justice for litigation.
Issued by: Centers for Medicare & Medicaid Services (CMS)
Issue Date: March 04, 2015
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