Accounts Receivable Collections Administrative Rule (Page 10 of 13) in pdf

.06

The average debt balance of all accounts, the average dollar amount collected for all accounts,

the recovery rate expressed as a percentage, the average commission, and the commission

expressed as a percentage; and

.07

For each of the items in Sections 3.30.05 and 3.30.06 above, a report categorized by the month

in which the debt was referred to Central Collection Services.

3.40

Assignment of Debts

All debts assigned by Central Collection Services to Private Counsel or Private Collection Agencies for

collection are subject to the terms and conditions set out in this rule.

.01

A Private Collection Agency which has accepted a debt for collection shall at its own expense

employ legal counsel to pursue litigation necessary to collect the debt.

.02

Participating Entity approval is required, in writing, prior to initiation of any litigation. If litigation is

filed, all costs, except for incidental expenses, associated with the litigation are the sole

responsibility of the Private Counsel and/or Private Collection Agency filing the litigation.

Incidental expenses paid by Private Counsel will be added to the debtor’s account balance and

will be reimbursed to Private Counsel by Central Collection Services the month following the

month in which the expense is incurred. Any funds collected on the account will first reduce

incidental expenses posted to the account. If the account is subsequently cancelled by the

Participating Entity, the incidental expenses not yet collected from the debtor will be billed to the

Participating Entity that cancelled the account.

.03

A Private Counsel or Private Collection Agency which has been assigned a debt for collection

shall not compromise or release any debt so assigned without prior approval of the Originating

Agency, the Director of the Division of Finance and Procurement or the State Controller.

.04

Private Counsel or Private Collection Agencies shall refer to the Department of Law all requests

by a Claimant State Entity for legal advice on questions of practice, policy, and procedure related

to the legal representation of the Claimant State Entity and shall not represent the State of

Colorado in any litigation without express authorization to do so by the Office of the Attorney

General. Central Collection Services shall be notified within three working days of any threatened

or actual legal action naming the State of Colorado or any of its State Agencies, institutions,

employees, or officers as a party to the action.

3.50

Restrictions on Private Counsel and Collection Agency Contracts

Any contract awarded to Private Counsel, Private Collection Agencies or to any Private Counsel retained

by the State of Colorado shall require that the individual or firm remain licensed and in good standing

under the respective occupational licensing statutes and/or regulation during the term of the contract.

Such contract shall require that a Private Counsel or Private Collection Agency shall at all times act in

compliance with the provisions of the “Colorado Fair Debt Collection Practices Act”, Article 14 of Title 12,

C.R.S., and in compliance with any rules or regulations promulgated by the Executive Director of the

Department of Personnel.

Every contract pursuant to this rule shall provide that Private Counsel or the Private Collection Agency, its

employees, agents, and legal counsel utilized by the Private Collection Agency, shall not violate any

provisions of the following:

The “Fair Debt Collection Practices Act”, Public Law 95-109, 15 U.S.C. 1691, et seq., and for this

.01

purpose “special collection counsel” and legal counsel utilized by a collection agency shall be

deemed to be a “debt collector”,

Accounts Receivable Collections Administrative Rule Page 10

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