Omnibus Debt Collection and Credit Management Act of 1986

Omnibus Debt Collection and Credit Management Act of 1986 - Title I: Establishment of Treasury Department Oversight - Requires the appointment of an Under Secretary of the Treasury for Debt Collection and Credit Management to: (1) supervise the development of, approve, and review the debt collection and credit management system of each Federal agency; (2) evaluate the effectiveness and value of disposing of the Government's loan and delinquent debt portfolio to private sources; (3) require each Federal agency to submit records on its debt status and collection efforts; and (4) provide an annual summary of the activities conducted under this Act to specified congressional committees.

Requires the head of each Federal agency to submit for the Under Secretary's approval a comprehensive debt collection and credit management plan. Lists the contents of such a plan, including requirements for: (1) procedures for screening credit applicants; (2) loan origination and application fees to defray costs; and (3) payment schedules comparable to schedules used in private credit transactions.

Title II: Improved Debt Collection Practices - Requires each executive and legislative agency to enter into a contract for the collection of indebtedness owed the United States that is delinquent by more than three months. Requires the contractor to report on its debt collection of indebtedness owed the United States that is delinquent by more than three months. Requires the contractor to report on its debt collection efforts at least biannually. Directs an agency to sell such debts which have not been collected within one year after being referred to a contractor, unless: (1) the contractor certifies that the debt is about to be collected; or (2) litigation to collect the debt has been initiated and not concluded.

Requires an agency to disclose to consumer reporting agencies information concerning any debt exceeding $100 which is delinquent by more than 31 days.

Amends the Internal Revenue Code to require (current law authorizes) the Secretary of the Treasury, upon written request, to disclose the address of a taxpayer for use by a Federal agency in collecting a debt owed the Government.

Authorizes the U.S. Attorney General to make contracts retaining private counsel to furnish legal services in U.S. debt collection cases. Directs the Attorney General to obtain at least four such contracts with private individuals or firms in each district in which such a contract is made. Lists contract provision requirements. Authorizes executive and legislative agencies to refer debt claims to such counsel who shall be considered to be a debt collector under the Fair Debt Collection Practices Act. Provides that no counterclaim filed in any debt collection action brought on behalf of the United States by such counsel who shall be considered to be a counterclaim filed in any debt collection action brought on behalf of the United States by such counsel shall be valid unless served directly on the U.S. Attorney General or the U.S. attorney for the appropriate judicial district.

Requires each executive agency, in accordance with standards prescribed by the Attorney General, to establish a unit for the conduct of litigation to collect delinquent debts owed to the United States. Directs the Attorney General to report to the Under Secretary quarterly on the status of litigation conducted by such units.

Provides that no State law setting an earlier deadline than Federal law shall apply to the time limitation for filing suit for collection of a debt owed to the United States.

Prohibits any legislative or executive agency from providing any Government funds to any person identified to be delinquent in the payment of the debt to the United States, unless: (1) the person demonstrates that the debt is no longer delinquent; or (2) satisfactory arrangements for payment of the debt have been made.

Prohibits any court from granting any injunction against the collection of a debt owed to the United States pending final judgment on any review of such collection.

Directs the Comptroller General to: (1) audit and report to each House of the Congress on the implementation of this title by executive and legislative agencies; and (2) report to each House annually on the status of debts owed to the United States.

Title III: Budgetary Incentives for Improved Debt Collection and Credit Management - Expresses the intent and commitment of the Congress to promote implementation of this Act by: (1) conducting annual oversight hearings on such implementation and on the Under Secretary's report on activities under this Act; (2) permitting funds collected on delinquent debt as a result of such implementation to be returned to the program from which they are derived or used to offset reductions under the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act); (3) requiring that each direct and guaranteed loan program obtain ten percent of its budget authority from debt collection; and (4) requiring each Federal agency to submit a report on such implementation with its annual appropriations request.