U.S. Border Patrol Seeks Private Debt Collectors to Pursue Immigration Fines Overseas

U.S. Customs and Border Protection (CBP) is seeking private contractors to locate people who have already been deported to Mexico, Honduras and Guatemala and attempt to collect unpaid U.S. immigration fines, marking what appears to be the federal government’s first effort to outsource overseas collection of these civil penalties. 

The solicitation represents a notable expansion of debt collection activity beyond U.S. borders and raises operational, legal and humanitarian questions about collecting government debts from individuals no longer residing in the United States.

CBP estimates more than $423 million in unpaid immigration debt

According to the solicitation, the Department of Homeland Security estimates it is owed approximately $423 million in unpaid penalties and fees as of July 2026. CBP reports that 66,387 individuals who owe civil fines have already been removed from the United States.

The debts stem primarily from civil penalties assessed against individuals who fail to comply with final removal orders or voluntary departure agreements. Current penalties can reach $998 per day after inflation adjustments, and in some cases have been assessed retroactively for several years, resulting in individual balances exceeding $1 million.

The proposed contracts would establish “Tracing and Payment Recovery Services” that require contractors to:

  • Locate deported individuals in Mexico, Honduras, and Guatemala.
  • Verify their identities and addresses.
  • Personally deliver written notices explaining the amount owed.
  • Report collection activity back to CBP.

The solicitation anticipates a two-year ordering period beginning in mid-August, although CBP has not disclosed how many contractors may ultimately receive awards.

Overseas skip tracing presents unique challenges

Unlike traditional domestic debt collection, the work described in the solicitation relies heavily on international skip tracing.

Within the accounts receivable management industry, skip tracing typically uses public records, credit data, utility information, employment records, and other databases to locate consumers. Many of those resources either do not exist or are significantly more limited outside the United States.

The solicitation acknowledges that contractors may need to document successful identification through evidence such as photographs of residences, utility records, employment documentation or death certificates before reporting results to the government.

Industry professionals familiar with international recovery efforts may recognize these assignments as substantially more complex than traditional domestic recovery work because of language barriers, varying privacy laws, limited data availability and security concerns.

Existing collection efforts have produced limited results

CBP’s solicitation indicates the agency already uses three private collection agencies to pursue these immigration debts. However, according to the solicitation, those agencies have not successfully located any debtors outside the United States.

That lack of success appears to be a primary driver behind creating a specialized international recovery program focused exclusively on three countries receiving large numbers of deported individuals.

Collection process raises practical questions

The solicitation states payments must be made through Pay.gov, the federal government’s online payment system.

According to the solicitation, the platform requires access to a U.S.-based bank account, a requirement that could complicate payment for individuals who no longer reside in the United States or no longer maintain U.S. banking relationships.

The solicitation does not explain whether alternative payment methods will be offered or how contractors should handle situations where an individual wishes to resolve the debt but lacks access to the required payment infrastructure.

Implications for the receivables management industry

Although the solicitation involves government civil penalties rather than consumer debt, it represents an unusual application of private sector collection expertise.

For the accounts receivable management industry, the procurement highlights several emerging trends:

  • Federal agencies continue expanding their use of specialized private collection services.
  • Skip tracing expertise remains a valuable capability beyond traditional consumer collections.
  • Cross-border recovery presents significantly different operational and compliance challenges than domestic collection.
  • International collection efforts may require new approaches to debtor verification, documentation, and payment processing.

Whether the program ultimately produces meaningful recoveries remains uncertain. The solicitation itself acknowledges the difficulty of locating individuals after deportation, particularly in countries where reliable public records and financial infrastructure differ substantially from those available in the United States.

Published On: August 5th, 2026|By |Categories: Industry News & Announcements|Tags: |

Related Posts