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Last Updated: 8/17/2018

Other Agency Debts (OAD)

We have the authority to collect debts owed to Minnesota state courts, colleges and universities, and other state, local, and county agencies. (See Minnesota Statute 16D.02.) We can also assess a collection cost up to 25 percent of the amount referred. (See Minnesota Statute 16D.11.) 

Collection Costs

We automatically add a collection fee to your referred balance due. If your debt was referred:
  • on or after July 1, 2009, we added a 20 percent fee
  • between January 1 and June 30, 2009, we added a 17 percent fee
  • before January 1, 2009, we added the fee in two increments:
    • when we received your debt, we added 15 percent
    • when enforced collection action was taken or we referred your debt to a private collection agency, we added an additional 10 percent 

​Cancelation of Collection Costs

We may cancel your collection costs if one of the following is true:  
  • Your household income for the 12 months prior to the referral is less than 200 percent of the annual federal poverty level. (See U.S. Department of Health and Human Services.)
  • You establish reasonable cause for not paying your debt within 60 days of our first contact.
  • You disputed the debt or amount of the debt and you pay or enter into a payment agreement within 30 days after resolving the dispute.