Agency
What does this cost my agency?
Nothing! On debts that become final after June 17, 2013, ODR adds a small collection fee to the debt balance that is paid by the debtor. When a collection occurs, the payment is split between the agency and ODR according to the Agency Participation Agreement.
For Debt placed with ODR after 1/1/2024, ODR will apply all payments to the “NEW” balance utilizing a 86.956/13.044 ratio (86.956% to the agency & 13.044% to ODR)
For Debt placed with ODR before 1/1/2024, ODR will apply all payments to the balance utilizing a 80/20 ratio (80% to the agency & 20% to ODR)
HOW DO WE GET STARTED?
- Your Organization and ODR enter into an Agency Participation Agreement(s) (APA)
- You will mail a “60-Day” collection letter notifying the debtor that their debt will be turned over to ODR in 60 days if they fail to make a payment.
- 30 days after you mail your “60 day” letter, you will mail a “30-Day” reminder letter.
- 60 days after first letter, you will send the debt file of information to ODR.
- ODR sends a “15-Day” letter and begins collection activities.
Examples of state debt currently being collected:
Vehicle insurance cancellation fines, probation & parole fees, payroll overpayments, unpaid medical insurance premiums & medical bills, parking & speeding tickets, court costs, damages to state property, delinquent sewer & water bills, unpaid city & parish taxes, recoupment of improperly spent grants.
Does ODR allow payment plans?
Although full payment is preferable, allowing debtors to pay over time is sometimes the only way to ensure collection. ODR will work with the debtor to set up a reasonable payment plan. However, even if they have a payment plan in place, their state tax refund will be offset as long as they have a balance. If a debtor goes 60 days without making a payment, ODR will begin utilizing other collection tools.