As organizations deal with an increase in delinquent debt, they also have limited tools and resources available to collect aged receivables.
The Office of the Comptroller has negotiated a statewide contract to make debt collection easy and cost-effective for Commonwealth of Massachusetts state, quasi-state, local government organizations, as well as other eligible entities.
The bottom line: revenue enhancement for your public organization.
There are a total of nine vendors on statewide contract PRF72: Debt Collection Services. These debt collection agencies follow the highest level of professional industry standards for collection services. They can navigate the specific complexities of the debt collection industry.
Their vast experience can ultimately save organizations time and money in the collection of outstanding debt.
Certain debt collection agencies can work directly with your organization to recommend legal services and/or litigation for types of collections.
With the statewide contract, there is no need to bid separately for debt collection services. Statewide contracts are an easy way to obtain impactful benefits for your organization by leveraging the buying power, solicitation process, contracting expertise, and vendor management and oversight of the Commonwealth of Massachusetts.
Organizations interested in acquiring debt collection services should email [email protected].
EMAIL USThe statewide contract for Debt Collection Services provides access to services that promote the efficiency and effectiveness of collecting debts owed to organizations. It authorizes the Office of the Comptroller (CTR) to procure and manage contingency fee contracts for debt collection services.
This contract is available to be used by Commonwealth agencies, departments and legislatively authorized Eligible Entities. Debts include revenue pursuant to 815 CMR 9.00 and can include fines, fees, licenses, permits, interest, income, assessments, third-party payments, and any other types of receivables that are capable of being collected. An additional addendum for MassDOT Transportation and Tolling is included in the contract and only applies to MassDOT Debts.
There are a total of nine experienced Debt Collection Agencies available to eligible entities.
All Commonwealth debt can be referred to the following debt collection agencies:
MassDOT Transportation and Tolling debt can be referred to the following debt collection agencies:
Commonwealth of Massachusetts
Local
This statewide contract for debt collection services is FREE for eligible entities to utilize for revenue recovery efforts. However, there are contingency percentage fees that are passed on to the debtor to pay when a collection payment is made.
Unless otherwise provided by law, approved contingent percentage ees are added by the statewide debt collection vendor to debts referred by an eligible 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 eligible entity in accordance with the 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. Please note, these previous negotiated contingent percentage fees are different depending on if the referred debt account is in first placement phase, secondary placement phase, and whether engaged in legal and litigation services when warranted.
After a debtor has been sent a minimum of four invoice collections notices with applicable dunning language, any eligible debt that is considered final, still within its statute of limitations for collections, and is more than 120 days old, can be submitted to Intercept. Examples of debt include:
To comply with Commonwealth legal statues and policies for external eligible entities, to become a delinquent debt, a minimum period of 120 days must have elapsed between the time the entity declares all of the applicable accounts or monetary obligations delinquent and the date the delinquent debt is submitted to a debt collection agency. It is also important to remember that some debt type categories may have a statute of limitations that should not be exceeded. Please note, statute of limitations requirements are not specific to the Commonwealth of Massachusetts and the Office of the Comptroller; any statute of limitations should be abided regardless of the collection method used. It is entirely the entity’s responsibility to ensure all debts referred comply with these laws. We strongly suggest you contact your organization’s attorney to clarify any statute of limitations questions that may arise.
A debt collection agency should attempt collection of a debt for a minimum of six months from the date of assignment to collect a payment. If the debt collection agency does not collect a payment within that six-month period or if six months has elapsed since the date of receipt, the debt collection agency should return the debt account to the referring entity as “uncollectable.” The referring entity should then send the debt account for secondary placement with an alternative statewide contractor debt collection agency vendor for another six-month period. This subsequent debt account placement is deemed best practice to conduct additional due diligence for attempt at revenue recovery efforts prior to the write-off process. Please note, this secondary referral step is negated when a debtor account is found to be deceased, bankrupt, etc. When these specific debt account return reasons are found, the referring entity can immediately proceed to the write-off process for these returned accounts.
Please note, the information provided in the above Frequently Asked Questions is for research purposes only and is not legal advice from the Office of the Comptroller nor is it a substitute for individualized legal advice. Further, the Office of the Comptroller disclaims any responsibility or liability which may arise or result from the use or reliance on any portion of the information provided in these Frequently Asked Questions.
The Commonwealth satisfies debts owed to the state by offsetting payments from the Massachusetts Management and Accounting Reporting System (MMARS) disbursement process, the Massachusetts Department of Revenue’s tax refund system, and the Massachusetts State Lottery Commission winning payouts over $600.
VISIT PAGEThe Electronic Revenue (eRev) program enables Commonwealth of Massachusetts eligible entities to accept online payments like credit and debit cards (Visa, Mastercard, Discover, and Amex), ACH, and mobile wallet. In
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