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2009 SESSION

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HB 2037 Debt Collection Recovery Fund; established.

Introduced by: Sal R. Iaquinto | all patrons    ...    notes | add to my profiles

SUMMARY AS PASSED: (all summaries)

Collection of debt owed the Commonwealth.  Establishes the Debt Collection Recovery Fund. The bill also provides that the Division of Debt Collection shall (i) deposit to the Fund all revenues generated by it, less any cost of recovery, from receivables collected on behalf of state agencies and (ii) transfer the remaining funds to the appropriate state agencies on a periodic basis. In addition, the bill provides that final orders of final agency case decisions may be recorded, enforced, and satisfied as orders or decrees of a circuit court upon certification of such orders by the agency head or his designee. Furthermore, each state agency and institution may charge reasonable attorney fees and collection fees on all past due accounts receivable.  The bill also provides that failure to pay in full at the time goods, services, or treatment is rendered by the Commonwealth or when billed for a debt owed to any agency of the Commonwealth shall result in the imposition of interest at the judgment rate as provided in § 6.1-330.54 on the unpaid balance. Interest shall begin to accrue on the 60th day after the date of the initial written demand for payment. Returned checks or dishonored credit card or debit card payments shall incur a handling fee of $50 to be added to the principal account balance.  The bill also provides that the Division will not assess a fee for direct payment resulting from the Setoff Debt Collection Act and authorizes institutions of higher education to elect to impose a late fee in addition or in lieu of interest for such a time as the institution holds a claim.


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