Code of Massachusetts Regulations
815 CMR - COMPTROLLER'S DIVISION
Title 815 CMR 9.00 - Debt Collection And Intercept
Section 9.05 - Debt Collection Services Statewide Contract

(1) Procurement of Statewide Contract for Debt Collection Services. The Office of the Comptroller shall procure a Statewide Contract for Debt Collection Services in accordance with applicable procurement requirements and publish the Contract for use by Billing Entities. State Department Billing Entities collecting State Debts must use the Statewide Contract for Debt Collection Services unless authorized to procure Debt Collection services under separate legislative authority. Any Billing Entity using the Statewide Contract shall use the Statewide Contract as negotiated and published and may not amend or negotiate different terms without prior review by the Office of the Comptroller.

(2) Location Assistance. If a Billing Entity cannot locate a Debtor to serve notice of a Debt, the Billing Entity may use the Statewide Debt Collection Contract for location services on a fee for service basis.

(3) Confidentiality of Debt Collection Information. Statewide Debt Collection Agencies are contractually obligated to ensure the security and confidentiality of all Debt information submitted under a Debt referral, training staff to ensure that no information about any Debt or Debtor is disclosed or accessed for any reason except as authorized, and taking the necessary precautions to ensure the security of all files, systems and other filing or storage locations of Debt and Debtor information to prevent data breaches as defined under M.G.L. c. 93H, and as prescribed for Federal, local and other states under applicable Debt Collection laws. In addition, all Statewide Contract Debt Collection Agencies are contractually obligated to meet the Payment Card Industry (PCI) standards for securing banking information and other personally identifiable information when receiving electronic payments from Debtors.

(4) Contingent Percentage Fees. Unless otherwise provided by law, or as authorized in the Debt Collection Services Statewide Contract, or by the Office of the Comptroller, no Contingent Percentage Fee payments shall be made for any Debt Collection services unless a Debt has been collected. Approved Contingent Percentage Fees are added by the Statewide Debt Collection Contractor to Debts referred by a Billing Entity. Statewide Debt Collection Agencies are authorized to net the Contingent Percentage Fee from gross receipts collected at the time the net proceeds are remitted to the Billing Entity in accordance with terms of the Statewide Contract. Statewide Debt Collection Agencies are required to provide detailed reports of all Collection activity as well as access to any information necessary to validate the amounts collected and the Contingent Percentage Fees netted.

(5) Statewide Debt Collection Litigation Services.

(6) Settlement with Partial Discharge /Partial Write-off. Statewide Debt Collection Agencies are not authorized to negotiate or settle a partial discharge of a Debt without the prior written approval of the Billing Entity, but may recommend a Settlement with a partial discharge to the Billing Entity, based upon the Debt type and financial circumstances of the Debtor and the likelihood of Collection. The Billing Entity will then determine if a Settlement with a Partial Discharge (partial Write-off) is appropriate and authorize the Debt Collection Agency to negotiate a Settlement. State Department Billing Entities are responsible for diligent efforts to collect the full amount of the Debt, and must certify that any Settlement and partial discharge, which will result in a partial Write-off, is in the best interests of the State when submitting a Write-off request to the Office of the Comptroller.

(7) Uncollected Debts. Statewide Contract Debt Collection Agencies must refer all uncollected Debts back to the Billing Entity after all Debt Collection actions have been exhausted, or upon six months after the Debt referral date, whichever is earlier. For the purposes of Debt Collection services, Debts will be administratively deemed "uncollectible" six months after referral to a Statewide Debt Collection Agency and must be returned to the Billing Entity for re-referral, continued Intercept, or Write-off. A Debt Collection Agency that returns a Debt as uncollectible may not claim a Contingent Percentage Fee if the Debt is subsequently collected directly by the Billing Entity or through other Collection efforts.