Debt Collection Act of 1981

(Measure passed House, amended)

Debt Collection Act of 1981 - Amends the Privacy Act of 1974 to permit Federal agencies to disclose information concerning an individual to a consumer reporting agency or a Federal lending agency. Declares that a consumer reporting agency accepting such information shall be deemed not to be performing an agency function and therefore shall not be subject to such Act.

Authorizes a Federal agency attempting to collect a claim of the United States to disclose to a consumer reporting agency information from agency records indicating that an individual is responsible for such claim if: (1) the annual notice concerning such records indicates that such information may be so disclosed; (2) the agency sends a written notice informing the person that a consumer reporting agency will be contacted within 60 days, describing the information to be disclosed, and explaining the person's right of administrative appeal and right of a full explanation of the claim; (3) the person has not agreed to repay the claim or filed for review of the claim; (4) the agency has established procedures for updating and verifying information about the claim; (5) the agency has reviewed the claim, if requested, and provided for the reconsideration of the decision upon review; and (6) the information disclosed is limited to the identity of the individual, the amount and status of the claim, and the program under which the claim arose. Permits any Federal lending agency to disclose such information to any other agency seeking credit information on an individual applying for a loan.

Amends the Budget and Accounting Act, 1921, to require the Federal budget, submitted to Congress each fiscal year, to contain: (1) an estimate of the amount of outstanding debt, debt in default, and debt to be collected for the fiscal year for each Federal program where the outstanding debt is projected to exceed $100,000,000; and (2) a comparison of the estimated and actual amount of debt collected during the previous fiscal year.

Directs each Inspector General of an agency to conduct an annual review of the debts of each major debt program.