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

Current through Register 1525, July 5, 2024
(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
.
(a) Statewide Debt Collection Agencies may provide litigation services for a Contingent Percentage Fee rate, which is usually a higher Contingent Percentage Fee rate than standard Collection services. Litigation services provided by a Statewide Debt Collection Agency may be charged only at the Contingent Percentage Rate which is added to the Debt, and may not separately bill or charge the Billing Entity or to the Debtor.
(b) Litigation Services-approval of SAAGs (Special Assistants Attorney General) by Office of the Attorney General. Statewide Debt Collection Agencies that provide litigation services must have their selected lawyer(s) designated Special Assistants Attorney General (SAAG) by the Attorney General's Office before any litigation services may be provided for State Department Billing Entities. State Department Billing Entities shall be responsible for monitoring the litigation efforts undertaken on behalf of the State by Debt Collection Agency SAAGs who have been approved by the AGO. Litigation by SAAGs may be undertaken only with the prior written approval of the State Department Billing Entity.