Utah Department of Administrative Services

Office of State Debt Collection

Organized during Fiscal Year 1996. The enabling legislation is found in Utah Code Annotated 63A-3-502.
 
Mission of the Office:
To maximize receipts of money to the State of Utah by effectively managing and collecting state receivables.
 
Responsibilities of the Office:
  • Collecting and managing state receivables;
  • Developing consistent policies, procedures and guidelines for accounting, reporting, collecting and writing off monies owed to the state;
  • Preparing quarterly and annual reports of the state's receivables;
  • Overseeing and monitoring state agencies receivable programs to ensure that state agencies are following established policies and procedures and collection of accounts receivables is efficient.
 
Funding of the Office:
The Office is funded with fees and interest approved in the annual appropriation act passed by the legislature. Section 63A-3-502 Utah Code authorizes the collection of the fees and interest from the citizen in addition to the original amount owed. The fees and interest are deposited into the "State Debt Collection Fund" as designated in 63A-3-505. In summary, the OSDC receives no state funding but is funded with dollars collected from the citizens owing the receivable.
 
The fees and interest authorized by law, 63A-3-502, and those actually being charged are presented below:
  • A fee to cover the administrative cost of collection;
  • A late penalty fee that may not be more than 10% of the account receivable; 
  • An interest charge that is:
    1. The postjudgment interest rate established  by the courts, or
    2. Not more than 2% above the prime rate for accounts receivable for which not court judgment has been entered.

     

    Monies in the State Debt Collection Fund are used to offset systems, administrative, legal, and other collection costs of the Office. The fees are also used to provide training to state agencies. The post judgment interest is used to fund the organized colletion programs in the District Courts.
     
    Statutes
    To find the Statutes pertaining to the Office of State Debt Collection, Click Here

    Collection Vendors

    The Office of State Debt Collection contracts with outside collection vendors to collect some of the State's receivables. The Debt Collection office currently works with these vendors:
     
    • Bonneville - Bonneville Billing and Collections, Inc.
      Phone: 888-621-7880
      Website: www.bonncoll.com
    • GC Services - GC Services L.P.
      Phone: 866-490-2745
      Website: www.gcserv.com
    • NCO - NCO Financial Systems, Inc.
      Phone: 866-315-2497 or 866-637-0271
      Website: www.ncogroup.com
    • Pioneer - Pioneer Credit Recovery, Inc.
      Phone: 888-846-8710
      Website: www.pioneer-credit.com
    • Subrogation - Subrogation Division Inc.
      Phone: 866-782-7634
      Website: www.subrodiv.com

    Frequently Asked Questions

    Tax Refunds / Garnishments

    Q: Does the Office of State Debt Collection accept the Injured Spouse form?
     
    A: Yes. Complete and submit the OSDC Injured Spouse form and all additional forms and schedules as identified on the form. To access the Injured Spouse Form with instructions, Click Here 
     
    Q: A portion of my tax refund was garnished. How do I get the rest of the refund?
     
    A: The remainder of the refund will either be mailed to you or deposited in your bank account depending on how you filed to get your refund.

    Bankruptcy

    Q: Do I still owe my debt if I filed bankruptcy?
     
    A: Some accounts are not dischargable in bankruptcy.

    Making Payments

    There are several methods to pay the Office of State Debt Collection.

    By Mail:
    You can mail payments to:
     
    Office of State Debt Collection
    PO Box 141001
    Salt Lake City, Utah, 84114-1001
     
    *Make sure to include your name; name on the account if is is not the same; and account number.
    Do NOT send cash through the mail. 
    Make checks payable to OSDC.
     
    In Person:
    You can make payments in person at our location:
     
    450 North State Street
    1135 State Office Building
    Salt Lake City, Utah 84114
     
    The State Office Building is located north of the State Capitol on Capitol Hill in Salt Lake City. Public parking is located on the east side of the Capitol Hill complex. Click here for directions.
     
    *If you are paying in person with cash, exact change is required.
     

    Payment Options

    • Cash - You can pay in cash by bringing exact change to our office in Salt Lake City. See the "In Person" section above for our location.
       
    • Money Orders - You can bring in a money order or mail it. Make it payable to OSDC. Remember to put your name and account number on the money order.
       
    • Checks - You can bring in a check or mail it. Make checks payable to OSDC. Remember to put your name and account number on the check. 
       
    • Credit Cards - We can take credit cards over the phone at 801-538-9645. To make regular monthly credit card payments, you can send in the Automatic Credit Card Form to the mailing address above and we can start the process. 
       
    • ACH - We can automatically take a specified amount from your bank account each month. Send in the Automatic Transfer Form to the mailing address above and we can start the process.
       

    Policies and Procedures

    To view the State of Utah Debt Collection Policies and Procedures, Click Here

    Overview of Accounts Receivable

    The management of accounts receivable of the state is a partnership between the agencies of the state and the entity who has caused an accounts receivable to be created on the state's books. The state in good faith has extended credit to the entity and the state has the expectation to be reimbursed for the services or goods that have been given and other actions that have been imposed upon the entity.
     
    The enforcement of revenue laws is an important part of state government's revenue collection operation. Revenues that are owed must be collected for the state to continue to function properly. Collecting revenues owed to the state provides dollars to fund beneficial state programs, ensures favorable borrowing rates because of high credit ratings and creates social justice.
     
    While the level of delinquent revenues is certain to increase during an economic downturn, the amount owed to the state at the end of a fiscal year is often more closely related to the state's attitude and policies regarding the collection of revenues and the effectiveness of the collection system than to the ability of the citizens to meet their liabilities.
     
    Revenue Enforcement Policy
    The state's written collection policy covers the collection of delinquent revenues. This policy, aimed at the enforcement of existing revenue laws, should be focused on known delinquents and that segment of the population that attempts to avoid paying their obligations altogether.
     
    In developing this policy, the state has two main goals:
    1) the maximization of revenues through the aggressive pursuit of known and yet to be discovered delinquent entities, and 2) the maintenance of goodwill with the citizens of the state. The pursuit of the first goal can result in more stable cash flows and improved collection rates (the ratio of actual collections to anticipated collections). Because the pursuit of the first goal will often conflict with that of the second, it is important that the revenue collections functions are as efficient, effective, and as inexpensive as possible.
     
    General Policy Guidelines
    While the exact nature and tone of collection enforcement policy varies from agency to agency, general guidelines should focus on assurances that 1) revenue collection policies will be carried out fairly and equitably; 2) revenue collection policies will not cause individuals undue hardships, with special consideration given when appropriate, and 3) penalties, interest charges, and other sanctions for nonpayment of debt owed to the state and others for whom the state has a responsibility to collect, will serve the interests of the state and encourage citizens to pay promptly.
     
    Statute of Limitations
    In most instances, no statute of limitations exists prohibiting collection of accounts receivable owed to the State of Utah. There are some statute of limitations that require the state to take a specific action within a specified period (lien property and perfect the lien within eight years, collect on bail forfeiture, etc.). If the action is not taken, the state will lose the opportunity to enforce payment of the debt through the attachment and sale of property, bond forfeiture, etc.
     
    Responsibilities of the OSDC
    The responsibilities of the OSDC are outlined in statute found in Chapter 63A-3-502(U.C.A.). These include:
    • Developing accounts receivable collection policies and procedures;
    • Providing technical assistance to agencies regarding the collection and management of accounts receivable and in association with the Division of Finance, provide uniform revenue recognition policies;
    • Writing an inclusive receivables management and collection manual for use by all state agencies;
    • Creating and/or coordinating a state accounts receivable database;
    • Monitoring and analyzing the receivables held by agencies; and
    • Preparing quarterly and annual reports of the state's receivables.
     
    Responsibilities of State Agencies
    State agencies are responsible for the following regarding the management of accounts receivable:
    Office of State Debt Collection
    Statewide Policies, Procedures and Guidelines
    • Utilizing systems that are adequate to properly account for and report their receivables;
    • Reporting receivables, their age, collection status and funding source to the OSDC quarterly;
    • Developing and implementing procedures that adhere to the collection policies and guidelines established by the Attorney General and the OSDC. (U.C.A. 63A-3-501 and 63A-3-503);
    • Bill for and make initial collection efforts of its receivables up to the time the accounts must be transferred (U.C.A. 63A-3-501), and
    • Transfer collection responsibilities to the OSDC or its designee according to time limits established by the OSDC (U.C.A. 63A-3-501)
     
    To view the State of Utah Debt Collection Policies and Procedures, Click Here
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