Debt Collection Practices Improvements Act of 1981

Debt Collection Practices Improvements Act of 1981 - Allows the head of a Government agency to deduct installments from an employee's pay to recover an amount which the agency head has reasonable cause to believe has been overpaid to the employee because of agency error. Exempts such an action from certain time limitation provisions.

Amends the Internal Revenue Code of 1954 to authorize a Federal officer or employee to disclose a taxpayer's address to a consumer reporting agency or a debt collector in connection with a proceeding to collect a Federal claim against such taxpayer. Allows such agency or collector to redisclose the address if necessary with regard to such proceeding.