The Government Collection Triangle

NC Debt Setoff

Garnishments

Collection Agency

Summer 2008

Angela E. Munsie

Forsyth County EMS

What is the relationship of Local Government to the

State?

Relationship of Local Government to State

The State Constitution gives the North Carolina General Assembly the power to organize local government: the power to establish or to abolish counties and cities. The General Assembly also determines the scope of county and city government: local governmental units must have legislative grant of power before dealing with any particular issue.Counties operate as the second tier of government, administering and delivering many programs to city as well as rural county residents.

In other words…

You have the power!

What makes the

Government Collection Triangle

legal?

Legal Collection Boundaries for Ambulance in North Carolina

Ambulance debt is treated as if it were tax due to the county or municipality. § 44‑51.4

Tax Law establishes the period of time a county or municipality may maintain and action or procedure to enforce collections. (10 years) § 105‑378

Enforcing collections by attachment and garnishment with wages and bank accounts. § 105‑368

Resources for Collecting Ambulance Debt

Daily CollectionsMedicare, Medicaid, and Health InsuranceAttorney’sEMS SubscriptionsPrivate Pay (during billing)

Delinquent Collections

NC Debt SetoffGarnishments > Wage> Bank AccountCollection Agency> Credit Report> Additional billing statements

NC Debt SetoffNC Debt Setoff

Withholding NC tax refunds and Lottery winnings over

$600

North Carolina Local Government Setoff Debt

Clearinghousewww.ncsetoff.org

Patients must be notified in writing 30 days prior to submission an allowed a hearing/appeal process if requested.Establish a Hearing OfficerMinimum Debt Requirements for Submission:– Delinquent at least 60 days– Must be an individual debt, not corporate,

etc.– Must be $50 or greater– Debts can be combined to meet the $50

minimum (same debtor, SSN, and debt type)

Submission of accounts can be unlimitedAccounts must remain on file with $0.00 balancePatient will be charged a $20 garnishment fee. ($5.00 NCDOR and $15.00 NCDCH)

Attachment and Attachment and GarnishmentGarnishment

Wages and Bank Accounts

Attachment and Garnishment

Wages and Bank Accounts

Wages> Verified through Employment Security Commission (ESC).> Withholds 10% of employee gross pay (amount before taxes).> Served one time on employer and garnishment remains active until account is paid in full.

Bank Accounts> Freezes bank account for 10 business days.> Fees imposed by bank charged to account holders, not to County.> At the end of 10 business days, the account is emptied to clear the amount sent in for garnishment.> Served one time on financial institution, and garnishment is for a one time payout.

Collection AgenciesCollection Agencies

Collection AgenciesFollows the Fair Debt Collection Practices Act as written by the Federal Trade Commission.Ability to submit debt to Equifax, Experian, and TransUnion credit bureaus. Extends a patients private pay billing time. May acquire information not known about patient. (employer, insurance, demographics)All fees imposed are charged back to the County. Account is active on credit file seven years from date of last communication efforts from patient.

Now what?

Game PlanKnow your opponent…

BAD

DEBT

ACCOUNT

(Your opponent)

Patient employed? Self or

Company?

Patient NEW to EMS?

Patient NEW to area?

Patient have an identity?Patient have assets?

Utilize your resources

COLLECT! COLLECT!

Outside of EMS some resources available to you might include…

Tax Office Social ServicesUtilities DivisionLocal HospitalsDepartment of Motor VehiclesEmployment Security CommissionAccurint for Government (Lexis Nexis)Law EnforcementOther counties…

CollectionAgency(7 yr.)

NC DebtSetoff(10 yr.)

Bank Garn(one time)

Wage Garn(100%)

Past DueAccount(s)

Let’s review…

One account can be collected by…

QuestionQuestions?s?

Thank Thank You!You!