(1)
Billing Entity Accounts Receivable Management. State Department Billing Entities are responsible for making diligent efforts to collect legislatively and legally authorized Accounts Receivables and Debts and for pursuing the full amount of a Debt. The Comptroller may prescribe accounting requirements for State Department Billing Entities to record Collection activity. All State Department Billing Entities, and any other Billing Entity using the Intercept process or the Statewide Debt Collection Contract are required to maintain detailed records to support the Collection of an Accounts Receivable, that a Debt is accurate and legally enforceable, and to support the accuracy of Debtor information.
(2)
Confidentiality of Debt Collection Information. All Billing Entities are required to maintain the security and confidentiality of information related to Debts and Debtors in accordance with state and federal laws related to confidentiality and Debt Collection, including M.G.L. c. 93H and c. 93I.
(3)
Fast Track to Attorney General's Office. At any point in the Collection process when a State Department Billing Entity has reason to believe the assistance of the Office of the Attorney General is essential to the successful Collection of the Debt, a State Department Billing Entity Department may contact the Office of the Attorney General for assistance.
(4)
Billing Entity Collection Efforts. The following outlines the standard process for billing and notices to collect Accounts Receivables and Debts. A State Department Billing Entity, and any Billing Entity seeking to submit Debts to the Intercept process under 815 CMR 9.00 must comply with 815 CMR 9.03(4)(a) through (d).
(a)
Suspension of Collection Efforts for Disputed Debts. A Billing Entity must immediately suspend the Debt Collection process for any Disputed Debt, or whenever a written request for a Hearing has been timely submitted, with the exception of any Debt that has already been subject to a court or administrative due process and has received a Hearing opportunity. A Billing Entity must suspend any Debt that cannot be confirmed and certified as accurate and legally enforceable. The suspension of Debt Collection activities shall continue until the Billing Entity has completed a Hearing or other comparable due process, if one has been timely requested in writing by the Debtor, or until the dispute is resolved between the Billing Entity and the Debtor. If a Hearing has not been timely requested in writing by the Debtor, and the Billing Entity determines that the Debtor's dispute is not supported by credible evidence, the Billing Entity may remove the suspension and continue with the Debt Collection activities.
(b)
Initial Billing. A Billing Entity must transmit an initial bill to a Debtor. The bill must include the name of the Debtor, the authorized type of Accounts Receivable being charged, the amount of the bill, the date the bill was issued, the date that payment is due before it is considered delinquent and procedures for remittance of payment. Billing Entities are responsible for ensuring and certifying the accuracy of the information contained in the bill.
(c)
Dunning Notices. If the initial bill is not paid in full by the Debtor by the payment due date, and the Debt has not been disputed by the Debtor, a Billing Entity must demonstrate diligent efforts to collect the Debt. Diligent efforts shall include at a minimum, but shall not be limited to, three written billing and Dunning Notices in addition to the initial billing, and a final notice. The following is the standard dunning schedule, but a Billing Entity shall establish any comparable Dunning Notice schedule that provides at least 120 days prior notice of Debt Collection and Intercept:
1.01 days past due Dunning Notice;
2.30 days past due Dunning Notice;
3.60 days past due Dunning Notice;
4.90 days past due final notice.
(d)
Notice Requirements. If Debts will be submitted for Collection through Intercept or to a Statewide Debt Collection Agency, at least three Dunning Notices must contain notice informing the Debtor of the following items:
1.Right to Dispute the Debt. Notice to the Debtor of the right to dispute the Debt if the Debt is inaccurate or the Debtor is not the individual who legally owes the Debt.
2.Due Process Notice. Notice to the Debtor that they may make a timely written application for a Hearing or other due process procedure within 15 business days from the date of the notice. The Hearing or due process procedure shall be based upon the Billing Entity's Debt dispute internal procedures, unless a Hearing has already been provided to the Debtor or a due process opportunity is provided before the dunning process begins.
3.Notice of Discharge of the Debt Through Intercept. Notice that the Debt remains unpaid, and if the Debtor fails to dispute the Debt or request a Hearing, that the Debt will be automatically assigned to Intercept from any other State, federal or local payments that may be due to the Debtor, or scheduled to be paid to the Debtor, including State tax refunds under M.G.L. c. 62D or federal taxes, and that the Debt may be subject to Late Fees and Collection Charges.
4.Notice of Intent to Assign a Debt to a Collection Agency. Notice that the Debt may be assigned to a Collection Agency and may be subject to Late Fees and Collection Charges.
5.Final Notice. A final notice (usually when 90 days past due) that the Debt is eligible for immediate referral to Intercept and may also be submitted to a Collection Agency for Collection, and may be subject to Late Fees and Collection Charges.
