THIRD JUDICIAL CIRCUIT OF MICHIGAN. Collections Policy & Procedures Manual

Transcription

1 THIRD JUDICIAL CIRCUIT OF MICHIGAN Collections Policy & Procedures Manual

2 SECTION I CRIMINAL DIVISION I. Introduction 3 II. Overview 4 III. Assessments and Payments.. 4 A. Costs & Fees. 4 B. Payment Due At Assessment. 5 C. Cashiering. 6 D. Information to Court. 7 E. Court Ordered Installments 8 F. State Prison Accounts. 8 G. Determination of Ability to Pay... 9 IV. Enforcement 9 V. Court Administration. 10 A. Administrative Responsibilities.. 10 B. Duties of Stakeholders...11 VI. Inactive Debts.. 16 A. Inactive Debts Policy 16 B. Cancellation of Debts 17 VII. Community Service in Lieu of Financial Obligation A. Courtroom and Cashier Responsibilities. 17 B. Probation Agent Responsibilities 18 VIII. Standards For Collection Agency Vendor.. 18 IX. Appendix 1. Sample Signage Posting Language (MCR 1.110) Attorney Payments by Event Crime Victim & State Fee Charts and Memo Government Payment Services Notice - Bonds Government Payment Services Notice Fines & Fees Payment Distribution Hierarchy (MCL ). 29 Example Payment Distribution Hierarchy Crime Victim Act Allocation of Payments (MCL a MC Wage Withholding Order MC 288 Order to Remit Prisoner Funds Prisoner Sweep Clarification Memo Draft Financial Statement of Account Notice of Delinquency Petition and Order for Court Appointed Attorney Sample Payment Slip Bond Notice MC241 Bond Order Irrevocable Assignment of Bond Form Motion and Order to Modify or Cancel Discretionary Court Ordered Costs and Fees Third Circuit Collections Legal Opinion 45 Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 2

3 THIRD JUDICIAL CIRCUIT OF MICHIGAN COLLECTIONS POLICY & PROCEDURES PLAN CRIMINAL DIVISION I. INTRODUCTION The Third Circuit Court (Third Circuit) has identified the need to establish a written collections policy to ensure that all participants have a clear understanding of their respective roles in the collections process and that collections activities are conducted consistently. These guidelines are intended to promote integrity and effectiveness in the collections process. Realizing that the lack of collecting court attorney fees, costs and fines calls into question the authority and efficacy of the Court and its right to assess costs as sanctions in administering justice and denies revenues to a jurisdiction, Third Circuit uniformly expects payment at the time of assessment, except when the Court allows otherwise, for good cause shown, pursuant to MCR A commitment to improve court collections will improve the credibility and integrity of the court and, at the same time, increase revenue for the recipients of these funds. Third Circuit further requests that anyone who has contact with defendants, including staff, judges, Department of Corrections (MDOC) personnel, attorneys, etc., will inform defendants that payment is due on the day of assessment. Third Circuit affirms that collecting court attorney fees, costs and fines is an integral part of the judicial system. Consistent enforcement of all court ordered costs, sends a clear message that the court intends to and will enforce its orders. Third Circuit expects that this initiative will result in a gradual increase in future voluntary compliance with fee payments Public Acts 70-79, , and 138 clearly defines the court s obligation to consistently assess and enforce all provisions defined in its orders. Experience demonstrates that a prompt and graduated response to noncompliance is the most effective approach. Third Circuit has therefore established an enforcement initiative that in conjunction with a private collections agency will ensure that regular progressive action will be taken for failure of a defendant to pay various types of court ordered assessments. Third Circuit has adopted the following guidelines and procedures to ensure the implementation of an effective and efficiently administered collection program. Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 3

4 II. OVERVIEW A defendant in a criminal proceeding; a respondent in a delinquency proceeding; or a parent/legally responsible adult (LRA) in a child protective proceeding will not be denied counsel because of inability to pay. Third Circuit Court judges may determine the ability of a defendant, respondent, parent/lra to pay part or all of the ordered court costs and attorney fees. It is within the discretion of the Third Circuit Court judge to make a finding of indigence on behalf of a defendant, respondent, parent/lra on the Affidavit of Indigence. The result could mean a waiver of the obligation to reimburse the Court for these fees or costs, except where fees are mandated by the state. III. ASSESSMENTS AND PAYMENTS Judges should provide a consistent message regarding the assessment, payment, and enforcement of court ordered financial obligations. At the initial hearing defendants will be informed from the bench that payment is expected at the time of assessment. Payment informational materials will be available to defendants upon request in the courtroom and in room 901. Additionally, signage 1 will be posted in the courtroom regarding payment expectations. The legal community is also encouraged to support the court s enforcement effort regarding MCR 1.110, by informing their clients that payment of costs and fees is required at assessment. A. Costs and Fees 1. Defendants are assessed a flat rate for attorney fees 2, court costs, fines, and other assessments, as follows: a. Attorney Fees Event based total b. Court Costs $ c. Crime Victims (Felony) 3 $ d. Crime Victims ( Serious or Specified Misdemeanor) $75.00 e. State Minimum (Felony) $68.00/ per convicted count 1 See Appendix 1 Sample signage language 2 See Appendix 2 Attorney Payments by event 3 See Appendix 3 Crime Victim & State Fee Charts & Fee Increase Memo 01/26/2012 Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 4

5 f. State Minimum (Misdemeanor) $50.00/convicted count 2. Assessments are entered into the court s case management system on the same day as ordered by the Judge. 3. Notice/Order For Payment a. An interim order for attorney fees shall be generated at specified hearings, beginning with the AOI and up to the last hearing prior to sentencing date. The interim order attorney fee amount shall be an event based calculation by hearing type. b. A final order for attorney fee reimbursement shall be generated at the sentencing hearing. All fees and costs shall be outlined on the sentencing order and stated on the record (see III A. for list of applicable fees/costs). The defendant shall receive a copy of the order and directed to the Cashier s Window to make a payment. c. If the court determines after a hearing, trial or appeal that the defendant is not guilty, any remaining balance on an interim assessment and late fees is dismissed (See MCL 769.1k). B. Payment Due at Time of Assessment 1. Pursuant to MCR 1.110, the court expects payment at the time of assessment, except when the court allows otherwise. This expectation shall be communicated to defendants by attorneys, court staff, judges, etc., as soon as possible throughout the adjudication process. 2. Each defendant will be required to make a payment on the day of assessment. 3. Clients are directed to make payments to the Wayne County Clerk Cashiers Window, 1441 St. Antoine, Room-102, Detroit, Michigan, Failure to pay attorney fees, costs, or fines in full within 56 days of due date is subject to a 20% late penalty on the balance owed (MCL ) The account may be referred to a collection agency to enforce full payment or initiate payment arrangements (See Sec. IV. D.). Defendant cannot solely pay attorney fees, costs, or fines within 56 days to avoid 20% late penalty, because payments are allocated equally between victim payments (Crime Victim Fees and Restitution) and attorney fees, costs, and fines % late fee is not assessed on restitution (See Appendix 5 Example) Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 5

6 5. If the defendant indicates their inability to pay in full at assessment, the assigned judge may allow the defendant the opportunity to enter into an installment plan. 6. Requests for additional time to pay should be initiated by the defendant, not by the Court. 7. Failure to fulfill payment obligations could result in one or more of the following actions: C. Cashiering a. A 20% late penalty on attorney fees, court costs, or fine balance that is over 56 days old; b. Referral to a collection agency; c. The debt reported to a credit bureau; d. Seizure and sale of real or personal property; e. Tax refund interception; f. Show cause hearings; g. Garnishment of wages. 1. All payments will be processed and receipted by the Wayne County Clerk Cashiers Window, 1441 St. Antoine, Rm.102, Detroit, MI Records shall be updated on the same day that the payment is made. 3. The following forms of payment will be accepted: a. Cash b. Money Order c. Certified Check d. Credit Card (Using Government Payment Services, GPS) 5 e. Income Withholding 4. In the event that an order has not been entered into the case management system, a defendant will be asked to provide a copy of the court order to facilitate processing of payment or referred back to the courtroom clerk for follow-up. 5. Unless otherwise directed, partial payments will be applied to the debt that is the most past due. If an individual owes multiple debts to the court, 5 See Appendix 4 Government Payments Services information Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 6

7 payments should be applied as required by statute (MCL a, a, a). 6. Distributions of all funds collected shall be applied to the defendant s account(s) based on MCL hierarchy of distribution. There is an exception, when a defendant makes a payment and indicates that the payment is to be applied to victim payments, or when the payment results from wage assignment or is received from the Department of Corrections or the sheriff, the payment shall first be applied to victim payments 7. MCL a(2); MCL a(2); MCL a(2). 7. If an account has been forwarded to the Court s collection agency vendor, defendants shall be instructed by the collection agency vendor to forward all payments to the Clerk s Office. In the event that a payment is sent to the collection agency vendor, the collection agency vendor shall forward the payment to the Clerk s Office for processing within 3 business days with the identifying related case information. D. Information provided to and collected by the Court 1. Third Circuit shall obtain and maintain the following information, where possible. Sensitive information maintained in the case management system, i.e., social security numbers will only be available to specified users. a. current address b. current telephone and cell numbers c. social security number (when possible) d. driver s license number e. employer name, address and telephone number 2. Courtroom staff is required to confirm and update personal information at various points of contact with the defendant. A history will be entered into the case management system to track all defendant related contact. 6 See Appendix 5 Distribution hierarchy and example payment distribution 7 See Appendix 6 MCL a Allocation of payments Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 7

8 E. Court Order Installment Payments (Not Encouraged) 1. If a defendant indicates an inability to pay in full at the time of the assessment, the Judge may order payment installments, and instruct that an initial payment is due immediately. The defendant will then be required to make minimum monthly payments, due on the 15 th of each month until paid in full. Payment terms should not exceed the term of probation. The installment plan must consider the defendant s overall account balance (multiple cases) in determining the monthly payment amount. a. The installment payment plan will be documented on the sentencing order or amended court order. b. It is encouraged that installment payment plans shall not exceed the term of probation. Monthly installment payments should consider the defendants ability to pay and attempt to not extend past the length of probation or be equal to payment in full by the close of probation. c. In the courtroom at the sentencing hearing, if a defendant requests payment by installment, they must agree to a voluntary wage withholding order. 8 Defendant s personal Information must be confirmed to ensure proper processing of the wage withholding order. (See III.D.1) d. If installment terms are not met, the account will be subject to the court s collection procedure. e. Defendant accounts are closely monitored for compliance, and action is taken promptly for non-compliance. F. State Prison Accounts If a defendant is incarcerated in a state prison facility, an Order to Remit Prisoner Funds (MC288) 9 shall be completed along with the Sentencing Order. Each order should follow the defendant throughout incarceration until discharged or account is paid in full. 1. Accounts for those sentenced to a state prison facility will not be subject to a 20% late fee until 56 days from the date of release. The account will be referred to the collection agency for further enforcement on the remaining balance, 56 days after release. 2. Accounts will be monitored for payments and coded as a State of Michigan Remittance. 8 See Appendix 7 Wage Withholding Order (MC289) 9 See Appendix 8 MC288 Order to Remit Prisoner Funds Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 8

9 3. When an account is determined paid in full, an Order for Satisfaction of Financial Obligation (MC290) will be entered and forwarded to the MDOC regional facility 10 by the Cashier s Office. 4. Any overpayments will be returned to the MDOC s regional office, accompanied by an Order for Satisfaction of Financial Obligation (MC290) to be re-credited to the prisoner s account. G. Determination of Ability to Pay A uniform policy and practice will aid to eliminate bias, real or perceived, in the determination of who is indigent. The following description outlines the court s practice when determining a party s ability to pay, contribute or reimburse toward a specified cost or fee. 1. The Court defines an Indigent as a person who comes before the court who lacks sufficient income or other resources to employ a qualified lawyer to defend without undue hardship. A party may be determined indigent or having a substantial financial hardship if any combination of the following factors or conditions is present: a. Food stamps b. Aid to Families with Dependent Children (AFDC) c. Medicaid d. Disability Insurance e. Housed in a Mental Health Facility f. Resides in Public Housing 2. A determination of indigence however does not prevent a person from partially or fully reimbursing the court attorney fees, costs and fines in the future. IV. ENFORCEMENT A. All defendants should receive a Financial Statement of Account 11 at sentencing. The statement will include the amounts assessed for each financial category, the total balance due, where to direct payments and notice of the 20% late fee penalty as applicable for failure to comply. B. All defendants will be instructed to pay their account in full immediately following their sentencing hearing. Further the Bench may request proof of payment in full prior to closing the case. C. Failure to comply with court ordered payment terms will result in collections enforcement after 56 days. 10 See Appendix 9 Memo Orders to Remit Prisoner Funds 11 See Appendix 10 Financial Statement of Account Form Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 9

10 D. Restitution is not subject to a late fee penalty and therefore these accounts are not referred to a collection agency. The court will manage delinquent restitution accounts as follows: 1. A delinquency notice 12 will be sent to the defendant at the last known address providing documentation of all attorney fees, costs, and fines, and related late fee assessments. 2. If the court has entered a wage assignment order, the employer information will be confirmed and the wage withholding executed, with copy of order to the defendant. 3. Initiate locate activities to determine ability to pay using indigency software. 4. Delinquent account notices will be sent in intervals with progressive severity as appropriate. V. COURT ADMINISTRATION A. Administrative Responsibilities 1. Include all relevant collections information to all related court forms. 2. Ensure that courtroom personnel notify defendant at each court appearance that payment is due at assessment. 3. Post collections signage in all courtrooms and public areas. 4. Contract with Collections Agency for enforcement assistance. 5. Implement a pilot project to enforce collection of restitution and other special needs. 6. Automate the production of relevant court orders. 7. Develop a Collections Module for CAP Attorney Training program. 8. Make collections policy and training materials available online. 9. Educate the legal community and the public regarding the court s collections policy through press releases to the local media. 12 See Appendix 11 Delinquency Notice Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 10

11 10. Continue to develop and update the collection s page on the court s website at Ensure that the collections information is easily accessed by public users. a. Track visitors to Court Collection web page(s). b. Link court collection s web page to related websites, (i.e. SCAO, National Center for State Courts, etc.) 11. Work with County Clerk s Office to create an e-payment method and link to the court s website. 12. Develop clear policies regarding the data collection and timely entry of pertinent information into the court s case management system. 13. Ensure consistent updates of required data at every appropriate level. 14. Create reports for monitoring payments on wage assignments, and on prison account payments. 15. Investigate the use of Income Tax garnishments and other similar tools. 16. Investigate a means to refer accounts for Tax Intercept. 17. Establish a consistently applied business process for dealing with probation cases to ensure that court ordered financial obligations are completed prior to closing. 18. Continue to manage the prisoner escapee reimbursement program. 19. Provide to the Bench regular monthly collection reports related to the Judge s own docket. B. Duties of Stakeholders The coordination of collection activities requires that staff clearly understand the responsibilities and the relationship of their respective work duties to the collections process as a whole. The following are some of the responsibilities that should be addressed by specified staff: Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 11

12 1. Assigned Counsel Services a. Shall distribute and collect the required court form (SCAO MC222) 13, Petition and Order For Court Appointed Attorney, that includes the following information: i. defendant s name and current address ii. iii. iv. current telephone number(s) driver s license number or State ID employer name, address and telephone number v. authorization to obtain a consumer credit report b. Add information collected at the time of attorney assignment to the case management system as appropriate. c. Notify District Courts and supporting agencies required to fully complete and provide all defendant information requested on the Petition and Order for Court Appointed Attorney form. 2. Pre-Trial Services a. Review, update, and maintain the following information, where possible: current address, current telephone and cell numbers, social security number, driver s license number, employer name, address and telephone number in the case management system. (Sensitive information maintained in the case management system, i.e., social security numbers will only be available to specified users) b. Inform defendants of credit card payment option through Government Payment Services (GPS). The GPS phone # is , Pay location #5443 and accepts Master Card, VISA, American Express, and Discover. (See link on a. Inform defendants that defendant posted bond refunds will be applied to any outstanding court ordered financial obligations and encourage defendants to request that third party posters pay any outstanding attorney fees, costs, and fines prior to obtaining any bond refund. 3. Judges a. Set payment assessments in accordance with established guidelines. Payment terms should be uniformly applied. 13 See Appendix 12 Petition and Order for Court Appointed Attorney Form Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 12

13 b. Payment plans should be as short term as possible, keeping the number of installments to a minimum. c. Notify defendants of the court s collections policy at every hearing. d. Review PSIR and other financial reports to determine the ability to pay. State findings on the record. e. Include cost and fee assessments and reimbursement terms on the record. f. Assure that courtroom staff makes available any written collection s materials to the defendant at court appearances. g. Hear late fee waiver motions upon the request of the person subject to the late penalty. MCL Criminal Bar a. Inform defendants of their obligation to make payments towards attorney fees, court costs, and fines ordered by the court. b. Develop plea agreements, considering payment of attorney fees, court costs and fines when establishing terms of probation; varying the length of probation to encourage immediate payment rather than over the full term of the probation. c. Actively support the court s collection efforts by informing the defendant at all hearings of their obligation to pay attorney fees, court costs and fines. Advising defendants to make their payments to the Wayne County Clerk Cashiers Office, Frank Murphy Hall of Justice, Rm 102 immediately upon entry of order to avoid the addition of a 20% late fee penalty in 56 days and future enforcement for collection. 5. Prosecutors a. Inform criminal defense counsel of their defendant s obligation to make payments towards attorney fees, court costs and fines ordered by the court. b. Develop plea agreements, considering payment of attorney fees, court costs and fines when establishing terms of probation; varying the length of probation to encourage immediate payment rather than over the full term of the probation. c. Provide County Clerk Cashier with complete victim related information for timely distribution of restitution related payments. Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 13

14 6. MDOC (Probation and Parole) a. Perform financial screening and make payment recommendations as part of the presentence investigation report. (PSIR) b. Inform the defendant at the probation screening of the date payment is expected and the approximate amount of the expected payment. c. Monitor accounts for payment of court ordered costs and fees. d. Recommend violation of probation for non-compliance of payment expectations to the sentencing judge. e. Recommend early discharge from probation if all financial obligations are paid in full, as appropriate. f. Recommend that the term of probation be extended (or continued) until the court s attorney fees, costs, and fines are paid in full. g. Report completion of Community Service, when applicable (See VII B.) 7. Court Room Clerk a. Enter orders and financial information immediately in the case management system at time of order. b. Ensure the accuracy of entries. c. Timely correct all inaccurate entries. d. Confirm and update defendant s personal information at various points of contact with the defendant. e. Review, update, and maintain the following information, where possible: current address, current telephone and cell numbers, social security number, driver s license number, employer name, address and telephone number, Sensitive information maintained in the case management system, i.e., social security numbers will only be available to specified users. Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 14

15 8. Cashiers Office a. Process all payments timely and accurately. 14 b. Apply payments according to statutorily mandated hierarchy. (Unless otherwise directed by the defendant) c. Verify defendant s personal information and request SSN. Timely update case management system accordingly. (See III.D.1.) d. Inform defendants of credit card payment option through Government Payment Services (GPS). The GPS phone # is , Pay location #5443 and accepts Master Card, VISA, American Express, and Discover. (See link on e. Manage returned payments. Review payments that are held in escrow to assure timely distribution. f. Offer third party posters the option of placing bonds in the defendant s name to avoid further financial responsibility if forfeited. 15 g. SCAO bond form (MC241) to be modified to include an opportunity for the Third Party Poster 16 to place the bond in the name of the defendant only. h. Irrevocable Assignment of Bond Form will be available upon request. 17 i. Apply all defendant posted bond refunds to financial obligations within the first 56 days following sentencing date. j. Encourage third party posters to pay attorney fees, costs, and fines prior to refund of bond. 9. Court s Collections Unit a. Coordinate with the contracted vendor for enforcement action. b. Monitor accounts, and ensure that electronic transfers are conducted on regularly approved schedule to the collection agency vendor. c. Review and process vendor invoices within 30 days of receipt. 14 See Appendix 13 Sample Payment Slip 15 See Appendix 14 Bond Notice 16 See Appendix 15 MC 241 Bond Order 17 See Appendix 16 Irrevocable Assignment of Bond Form Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 15

16 d. Provide training to staff involved in the collections process and coordinate collections efforts with other courts and agencies. e. Develop and maintain a Court Policy and Procedures Manual. f. Revise policies as needed to reflect any relevant changes to the policy. g. Prepare training materials for CAP module as needed. h. Review requests for indigence referred to the court by the collections vendor utilizing financial confirmation software. i. Continue to inform staff of collection s policy. j. Maintain statistics, prepare reports, and evaluate the Collections Program. i. Document all relevant reports relating to collections, including use and frequency. aa. bb. Monitor and conduct regular evaluation of collection vendor s progress and effectiveness, and report to the administration. Report trends based on statistical documentation. ii. Prepare SCAO Annual Reports and remit each July, as required. aa. bb. Statistical report will be generated by Collection s Coordinator Any inconsistencies will be remitted to SCAO promptly. VI. INACTIVE DEBTS A. Inactive Debts Policy 1. Inactivation Inactivation is an administrative procedure to remove a debt from the list of accounts that the court cannot reasonably collect. Inactivation of an uncollectible debt from the court s accounts receivable ledger does not forgive or discharge the debt; an inactive debt is still payable by the debtor. Inactivation can be temporary or indefinite. If circumstances allow collection efforts to resume, an inactive debt shall be reinstated to active status. 2. Incarceration, Deferral of Obligation, Release Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 16

17 If a defendant is incarcerated, the assigned judge shall issue an Order to Remit Prisoner Funds (MC288) to be forwarded to MDOC so that funds can be collected from the defendant s prisoner account. No additional collection efforts will occur on incarcerated defendants until their release from prison. B. Cancellation of Debt 1. A defendant s discretionary debt may be cancelled by filing a Motion and Order to Modify or Cancel Discretionary Attorney Fees, Court Costs and Fines18, that is, the court shall forego collection activity, in the following instances: a. The defendant/debtor is deemed indigent, as determined by the court; b. The defendant/debtor is deceased and the estate is closed; c. The defendant/debt is discharged by order of bankruptcy court; d. The defendant/debtor has satisfactorily completed community service on the applicable categories; e. Determination by the judge to waive an unpaid balance or; f. The debt is deemed uncollectible by operation of law. 2. A defendant can be deemed indigent by a Judge s Order: a. Based on testimony, PSIR or any other evidence b. Recommendation by Collection s committee or vendor of the court 3. Bankruptcy Proceedings-Stay of Obligation When the court receives proof of Bankruptcy or Stay of Obligation, the account will be placed on enforcement hold, inactive status, pending settlement of Bankruptcy or Stay of Obligation. VII. COMMUNITY SERVICE IN LIEU OF FINANCIAL OBLIGATION When the assigned judge allows for the performance of community service hours in lieu of paying the assessed amount of court costs or attorney fees, the following procedures shall serve as a guide for satisfying the financial obligation through community service. A. Courtroom and Cashier Responsibilities 1. The court clerk will record the assessed amount on the signed judgment of sentence and indicate the hours or days of community service ordered. A 18 See Appendix 17 JC52a Motion and Order to Modify or Cancel Discretionary Court Costs and Fees Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 17

18 copy of the sentencing order will be provided to the defendant and cashier. These terms will be promptly entered into the case management system. 2. A hold will be placed on each applicable fee category assessed for community service until completion of service or further order of the court. Doing so will allow payments to be directed to other fee categories, (i.e. restitution, crime victims fees, and state minimum costs) while the community service is being performed. 3. Written confirmation will be provided by the MDOC, once community service has been completed. Any remaining unpaid balance for designated discretionary category, (court costs or attorney fees), and any associated late fees is zeroed out. Any funds being held will be reallocated to other outstanding balances. 4. If funds are collected while the defendant is performing community service and later found to be distributed inappropriately, the cashier will be responsible to reallocate payments to the appropriate fund category, or process for refund as appropriate. B. Probation Agent Responsibilities 1. Monitor the defendant s compliance with court order permitting community service. 2. Report in writing completion of community service and submit documentation to the cashier s office to remove any Community Service holds. 3. If community service is not satisfied, the applicable fee category, (attorney fees, costs, and fines) will be reinstated, and the account will begin the enforcement process on that fee category. VIII. STANDARDS FOR COLLECTION AGENCY VENDOR Where payment of reimbursable attorney fees, court costs and other financial obligations have not been paid in full in accordance with MCR 1.110, an account containing the party s identifying information may be referred to a private collection agency for further enforcement action within the approved policy of the Court. The collection agency vendor shall perform regular and ongoing collections enforcement activities on files transmitted by the Court. Such activities include, but are not limited to, notice mailings, telephone contacts, and other acceptable methods that are reasonable to increase payment on accounts that have not been paid in full. Any party that is subject to the court s collection s activity shall be treated with dignity and respect. A. Electronic Account Transfers to the Collection Agency Vendor Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 18

19 1. A process will be developed to transmit predetermined account data to the collection agency vendor for collection purposes on a daily basis. 2. Account data will include the following elements when available: a. Account number b. Defendant name (Last, First, Middle) c. Address 1 (City, State and Zip) d. Address 2 (City, State and Zip) e. Phone number f. Date of birth g. Gender h. Driver s License Number i. Employment information j. Business phone number k. Social security number l. Amount due m. Payment information, amount, date, and payment status n. Account adjustments/changes due to court order, etc. B. Initially accounts being referred to the collection agency vendor will be limited to accounts meeting all of the following: 1) delinquency exceeds 56 days, 2) defendant is not incarcerated, 3) attorney fees, court costs and fines have been assessed and 4) costs assessed do not include restitution. C. Electronic account transfers to the collection agency vendor will begin upon contract approval. All system related modifications needed to ensure proper electronic transfer of the data to the collection agency vendor will be implemented and submitted as determined. D. The collection agency vendor will execute collection proceedings as outlined in the contract to the fullest extent of the law. This will include but not be limited to: 1. Initial delinquency notices generated by the collection agency vendor will be on Court letterhead, however progressive enforcement notices may advise the defendant that the account has been referred to the collection agency vendor for further enforcement. All forms used by the collection agency vendor will be Court approved forms. 2. Notices will be progressive if delinquency fails to decrease. Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 19

20 3. Defendants will be instructed to direct all payments to the Wayne County Clerk, Frank Murphy Hall of Justice, Room 102, Detroit, MI All payments will be certified check or money order and made to the attention of the Wayne County Clerk or Third Circuit Court. 5. The collection agency vendor will confirm all required defendant information and direct the defendant to include his name, address and court case number on all payments made to the attention of the Wayne County Clerk. 6. Defendants will be directed to make all cash payments on site at the Cashier s Office at the Frank Murphy Hall of Justice. 7. All payments will be posted by the County Clerk s Office to the case management system within 24 hours of receipt. 8. The collection agency vendor will not receipt or collect payments. Any payments received in error will be forwarded to the Wayne County Clerk s Office within three business days. 9. The collection agency vendor will track partial payment plans and account review process based on pre-approved court time frames for monitoring of accounts. 10. The collection agency vendor shall advise a defendant of credit card payment option through Government Payment Services (GPS). GPS accepts, Master Card, VISA, American Express, and Discover, the phone # is , Pay location # The collection agency vendor will develop an acceptable method for collecting payments through the Clerk s credit card program (Government Payment Services (GPS). E. At the end of each monthly cycle, Third Circuit will prepare a report advising of payments applied to late fees and court costs. Based on distribution, a requisition will be prepared requesting payment to the collection agency vendor. F. Third Circuit shall pay the collection agency vendor a monthly commission within 30 days of receiving an invoice from the collection s vendor. G. The obligation to pay the collection agency vendor shall not begin until full payment is received for all amounts designated in the order in a particular file for the crime victim s assessments and minimum state costs, and a commission is not owed to the collection s vendor for any money applied by the Court to crime victim assessments and minimum state costs. H. Required Vendor Reports Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 20

21 1. Acknowledgement report of all electronic transfers 2. Number of mailings generated/week 3. Case Status Report, collections activity report, number of cases with reduced balances 4. History Analysis provides number of new cases, adjustments, cancellations, payment in full and average case age. 5. Locate report, address updates and modifications to status 6. Number of Calls handled 7. Number of touch points on an account by vendor/month 8. Returned cases referred back for inactivation due to agreed upon specifications 9. Vendor invoice remitted on a monthly basis Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 21

22 Appendix Appendix 1 Appendix 2 Appendix 3 Appendix 4 Sample Signage Posting Language Attorney Payments by Event Crime Victim & State Fee Charts and Fee Increase Memo Government Payment Services Notice Bonds Government Payment Services Attorney fees, Costs, and Fines Appendix 5 Payment Distribution Hierarchy (MCL ) Appendix 6 Appendix 7 Appendix 8 Appendix 9 Appendix 10 Appendix 11 Appendix 12 Appendix 13 Appendix 14 Appendix 15 Appendix 16 Appendix 17 Appendix 18 Crime Victims Right Act Allocation of Payments MCL a) MC Wage Withholding Order MC Order to Remit Prisoner Funds Memo Orders to Remit Prisoner Funds Draft - Financial Statement of Account Notice of Delinquency Petition and Order for Court Appointed Attorney Sample Payment Slip Bond Notice MC 241 Bond Order Irrevocable Assignment of Bond Form JC52A - Motion and Order to Modify or Cancel Discretionary Court Costs and Fees Third Circuit Legal Opinion Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 22

23 Sample Signage Posting Language Appendix 1 Fines, Costs and other financial obligations imposed by the court must be paid at the time of assessment, except when the court allows otherwise for good cause shown. Michigan Court Rule Failure to pay fines, fees, or costs in full within 56 days after that amount is due and owing is subject to a late penalty equal to 20% of the amount owed. Michigan Compiled Law All funds collected are automatically distributed on a 50%/50% basis to victim and non-victim assessments based on statutory hierarchy. Michigan Compiled Law Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 23

24 Appendix 2 Attorney Payments by Events List below are the billable amounts attorney can voucher by event: Capital $500 Life $ months $ months $ months $350 Disposition Conference Dismissal $130 Held $240 Pled Guilty $350 Proceedings Results Final Conference $40 Sentencing $60 Motion Hearing $60 Calendar Conference $50 Waiver Trial ½ day $90 Jury Trial ½ day $90 Evidentiary Hearing $80 Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 24

25 Appendix 3 Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 25

26 Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 26

27 Appendix 4 Government Payment Services Information Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 27

28 Appendix 4 (Continued) Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 28

29 Payment Distribution Hierarchy Appendix 5 The numbers rank the priority under each of the two main groups-- Victim Payments and Non Victim Payments. Fee categories within the same number indicate equal priority within that position, unless a different percentage is indicated. Victim Payments 1. Crime Victim's Fee 2. Restitution Non Victim Payments 1. State Minimum Cost 2. Attorney Fees (80%) and Late Attorney Fee (20%) -- prorated 3. Court Costs (80%) and Late Court Costs Fee (20%)--prorated 4. Fines (80%) and Late Fines Fee (20%)--prorated 5. Criminal Motion Fee, Appellate Court, Appeal Fee, District Court Appeal Fee, Forensic Fee (pre 10/03 assessment only) and DNA Test (Pre 10/03 assessment only)-- All prorated. All funds collected are automatically distributed to the account based on SCAO approved guidelines and statutory hierarchy (MCL ) in the order listed below: Effective Oct 1, 2001 Divide All Payments Received into two halves 50% / 50% 50% to Victims Payments 50% to Non Victim Payments 1 st Crime Victims Fee 1 st State Minimum Cost 2 nd Attorney Fees/ 2 nd Restitution Late Fees (83.33%-16.67%) 3 rd Court Costs/ Late Fees (83.33%-16.67%) 4 th Fines/Late Fees (83.33% %) 5 th Any Other Assessment Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 29

30 Example of Distribution Hierarchy Application Probation Order: Crime Victims Fee, $ Restitution $ State Minimum Fee $ Attorney Fees $ Court Costs $ Total $2, Payment $1, (see distribution breakdown below) Balance $1, Effective Oct 1, 2001 Divide All Payments Received into two halves 50% / 50% Appendix 5 (continued) 50% to Victim Payments $ $ % Non-Victim Payments Applied to CV Fee Applied to State Min Balance Due 0.00 Balance Due Applied to Restitution Balance Due Applied to Attorney Fee Balance Due 0.00 Applied to Court Costs Balance Due Total Balance Due $1, After 56 days a 20% penalty will be added to outstanding attorney fee and court cost balances as follows: Total Balance Due After 56 Days $ Attorney Fee Late Fee Attorney Fee Balance Court Cost % Late Fee Court Cost Balance Failure to pay fines, fees, or costs in full within 56 days after that amount is due and owing, is subject to a late penalty equal to 20% of the amount owed. Michigan Complied Law Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 30

31 WILLIAM VAN REGENMORTER CRIME VICTIM'S RIGHTS ACT (EXCERPT) Act 87 of a Allocation of payments. Sec. 76a. Appendix 6 (1) If a person is subject to any combination of fines, costs, restitution, assessments, probation or parole supervision fees, or other payments arising out of the same criminal proceeding, money collected from that person for the payment of fines, costs, restitution, assessments, probation or parole supervision fees, or other payments ordered to be paid in that proceeding shall be allocated as provided in this section. If a person is subject to fines, costs, restitution, assessments, probation or parole supervision fees, or other payments in more than 1 proceeding in a court and if a person making a payment on the fines, costs, restitution, assessments, probation or parole supervision fees, or other payments does not indicate the proceeding for which the payment is made, the court shall first apply the money paid to a proceeding in which there is unpaid restitution to be allocated as provided in this section. (2) Except as otherwise provided in this subsection, if a person is subject to payment of victim payments and any combination of other fines, costs, assessments, probation or parole supervision fees, or other payments, 50% of each payment collected by the court from that person shall be applied to payment of victim payments, and the balance shall be applied to payment of fines, costs, supervision fees, and other assessments or payments. If a person making a payment indicates that the payment is to be applied to victim payments, or if the payment is received as a result of a wage assignment under section 76 or from the sheriff under section 80a, the payment shall first be applied to victim payments. If any fines, costs, supervision fees, or other assessments or payments remain unpaid after all of the victim payments have been paid, any additional money collected shall be applied to payment of those fines, costs, supervision fees, or other assessments or payments. If any victim payments remain unpaid after all of the fines, costs, supervision fees, or other assessments or payments have been paid, any additional money collected shall be applied to payment of those victim payments. (3) In cases involving prosecutions for violations of state law, money allocated under subsection (2) for payment of fines, costs, probation and parole supervision fees, and assessments or payments other than victim payments shall be applied in the following order of priority: (a) Payment of the minimum state cost prescribed by section 1j of chapter IX of the code of criminal procedure, 1927 PA 175, MCL 769.1j. (b) Payment of other costs. (c) Payment of fines. (d) Payment of probation or parole supervision fees. (e) Payment of assessments and other payments, including reimbursement to third parties who reimbursed a victim for his or her loss. (4) In cases involving prosecutions for violations of local ordinances, money allocated under subsection (2) for payment of fines, costs, and assessments or payments other than victim payments shall be applied in the following order of priority: Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 31

32 (a) Payment of the minimum state cost prescribed by section 1j of chapter IX of the code of criminal procedure, 1927 PA 175, MCL 769.1j. (b) Payment of fines and other costs. (c) Payment of assessments and other payments. (5) As used in this section, "victim payment" means restitution ordered to be paid to the victim or the victim's estate, but not to a person who reimbursed the victim for his or her loss; or an assessment ordered under section 5 of 1989 PA 196, MCL History: Add. 2000, Act 503, Eff. June 1, 2001 ;-- Am. 2003, Act 98, Eff. Oct. 1, 2003 ;-- Am. 2005, Act 184, Eff. Jan. 1, 2006 ;-- Am. 2006, Act 461, Eff. Jan. 1, 2007 Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 32

33 Wage Withholding Order Appendix 7 Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 33

34 ORDER TO REMIT PRISONER FUNDS Appendix 8 Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 34

35 PRISONER SWEEP CLARIFICATION MEMO Appendix 9 Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 35

36 Appendix 10 DRAFT - Financial Statement of Account Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 36

37 NOTICE OF DELINQUENCY Appendix 11 Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 37

38 Appendix 12 PETITION AND ORDER FOR COURT APPOINTED ATTORNEY FORM Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 38

39 Appendix 13 ATTENTION! COURT ORDERED COSTS, FINES AND FEES ARE DUE IMMEDIATELY UPON ASSESSMENT PAYMENTS (EXCEPT SUPERVISION FEES) MUST BE DIRECTED IN PERSON OR BY MAIL TO THE WAYNE COUNTY CLERK CASHIER 1441 ST ANTOINE, ROOM 102 DETROIT, MICHIGAN DEFENDENT CTN NUMBER REQUIRED ADDRESS/CITY/ZIP PHONE # AMOUNT OF PAYMENT rev. 04/14/06 CERTIFIED CHECK OR MONEY ORDER. (NO PERSONAL CHECKS ACCEPTED) CASH MAY BE PAID AT THE CASHIER S WINDOW ONLY COMPLETE THIS PORTION AND RETURN WITH PAYMENT Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 39

40 RELEASE BOND NOTICE OFFICE OF THE WAYNE COUNTY CLERK NOTICE PLEASE READ BEFORE POSTING THE BOND Appendix Each bond you post is for that case only. 2. Once you are done posting the bond here, you will go over to the Wayne County Jail to see if the defendant has any other holds. All holds must be satisfied before the jail will release the defendant. 3. If you decide not to satisfy those other holds, you will not be able to come back and get the money on the case until this case is completed. FORFEIT 4. The bond that you are posting is to assure the defendant s appearance in court for all present and future court dates. 5. If the defendant is late or fails to appear, the Judge may forfeit the bond. Further, both you and the defendant could be held responsible for the full amount of the bond. For this reason, it is recommended that the bond be placed in the defendant s name to avoid any future responsibility for payment on a forfeited bond due to the defendant s failure to appear at his/her court dates. REFUND 6. The bond you are posting is a ten percent bond. If you choose to post the bond in your name, once the case is completely over, you will receive 90% of your money back, less the Clerk s 10% fee. If the bond is posted in the defendant s name, as recommended, the bond money will be returned to the defendant less the Clerk s 10% fee, and any other fines and fees assessed on his/her court case(s). 7. If you choose, you can post the full amount of the bond. If you choose this option, you will get the full amount posted back once the case is completed. REFUNDS CAN ONLY BE ISSUED TO THE DEFENDANT OR THE POSTING PARTY SIGNING THE SLIP. BONDS LISTED IN DEFENDANT S NAME ARE SUBJECT TO SAME PERMISSION AS IF POSTED BY DEFENDANT DIRECTLY. A VALID DRIVER S LICENSE OR STATE ID IS REQUIRED WHEN PROCESSING A BOND RELEASE. BOND REFUNDS WILL BE MAILED TO YOU WITHIN FIVE WORKING DAYS. Third Judicial Circuit of Michigan Collections Policy & Guidelines 04/01/2012 Page 40