Payment Plans

(1) A Billing Entity shall have the option, at any time during the Debt Collection process, PRIOR to submission of the Debt to Intercept, to offer a Debtor a Payment Plan to discharge the full amount of a Debt through installment payments. (2) Payment Plans for State Department Billing Entities and Payment Plans negotiated by a Statewide Contract Debt Collection Agency on behalf of any Billing Entity must adhere to the following requirements: (a) Payment Plans must be negotiated for the full amount of the Debt and may not be negotiated for less than the full Debt amount unless the Settlement process is followed pursuant to 815 CMR 9.05(6). (b) Payment Plans should attempt to collect an initial down payment of at least 25% of the total Debt, depending upon the Debt type and financial circumstances of the Debtor, as negotiated between the Billing Entity and the Statewide Debt Collection Agency. (c) Payment Plans should have a maximum duration not to exceed six months, unless the Eligible Entity approves a longer period not to exceed in any case 12 months. (d) Payment Plans negotiated in the final year of the Statewide Contract for Debt Collection may not be negotiated to extend beyond six months after the termination date of the Contract unless confirmed with the Office of the Comptroller. (e) Contingent fees payable to the Debt Collection Agency will be due at the time each Payment Plan installment is remitted to the Billing Entity. (3) Payment Plans by other Billing Entities that are not negotiated by a Statewide Contract Debt Collection Agency shall follow the internal requirements for the non-State Department Billing Entity.