The U.S. Treasury Department is in talks with GMAC Financial Services Inc. about a possible third infusion of cash into the company, an Obama administration official confirmed on Tuesday night, Reuters reported.

The official declined to say how much additional money was under discussion for GMAC, which already has received $12.5 billion of taxpayer funds. The Wall Street Journal said the government may have to inject another $2.8 billion to $5.6 billion into the Detroit-based lender.

GMAC is the traditional lender to General Motors Co. dealers and customers and is taking over Chrysler’s auto loan business.

With the U.S. auto industry still struggling as key companies such as GM come out of bankruptcy, the administration has shown signs of willingness to step in to help them try to get back to stability.

GMAC was one of 19 banks that underwent government “stress tests” earlier this year. The tests aimed to assess whether banks would need more capital if a downturn continued through 2010. Ten of the banks, including GMAC, were found to need capital immediately, but others were able to raise it on their own.

The stress test results issued in May showed that GMAC needed to raise $11.5 billion of new capital and it was widely speculated at the time that because it had few obvious ways to raise money on its own, GMAC might have to come back to the government.

GMAC became a bank holding company after its parent, General Motors, declared bankruptcy and went into reorganization.