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CCU Policies for Installment Payment Plans

Central Collection Unit Qualifying Debts
To be considered for any type of Central Collection Unit (CCU) payment arrangement, the debt(s) must qualify as a CCU debt. In general terms, that means that the delinquent debt must be morr than 90 days old. If a CCU customer has delinquent debts both under and over 90 days old, the CCU will only address delinquent debts more than 90 days old. 

The customer will be advised by CCU Collections Representatives (customer service representatives) that legislation prohibits the CCU from working out any arrangements unless the delinquent debt is over 90 days old. 

DMV-Related Payment Arrangements
DMV-related payment agreements may be considered for those qualifying and in need of a DMV service, such as renewal of a driver’s license and/or registration. Payment arrangements that do not involve renewal of services should be handled by the CCU outside collection agency, currently Harris & Harris, whenever possible. 

An initial Installment Payment Plan, or “IPP,” is a payment agreement that requires a minimum down payment of 25 percent while the remaining balance must be paid in equal monthly payments, until the balance due is paid in full. 

The number of allowable months to pay is based on the outstanding balance due, and other factors as determined by CCU personnel. 

A down payment is generally required, and monthly payments are required on the due date, as stated in the terms of the IPP. 

Failure to keep the terms of an IPP will result in a default.

Second Chance Installment Payment Plans
Second Chance Installment Payment Plans (SCIPP) are subject to managerial approval, and are considered on an exception basis, and only when its determined to be in the best interest of the District. To minimize default probability, debtor must verify an ability to make monthly payments through employment or some other means prior to initiating this type of agreement. The CCU may require submission of financial information such as bank statements, pay statements, tax returns, and verification of necessary living expenses. A larger down payment may be required. 

NOTE: Undue hardship may be a valid reason to reinstate or allow an SCIPP. 

Undue hardship is defined as a valid and justified inability to keep the terms of the agreement. Examples may relate to a medical condition, unemployment after initiating payment arrangements, incarceration, military deployment, unforeseen family emergency, etc. 

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