The Louisiana Office of Debt Recovery (ODR) is the centralized debt collection unit for the state of Louisiana. It was established in 2006 under Louisiana Revised Statute 47:1676 and is authorized to collect delinquent debts owed to the state.
The mission of ODR is to “aggressively pursue the collection of accounts or claims due and payable to the state of Louisiana or any state agency” (La. R.S. 47:1676). This includes unpaid taxes, fees, fines, penalties, and other debts. ODR seeks to increase revenue collection and ensure debts are paid promptly and efficiently.
Services Provided
The Office of Debt Recovery (ODR) acts as the centralized debt collection unit for the state of Louisiana. The ODR is authorized and required to collect delinquent debts owed to the state and its agencies, boards and commissions (https://revenue.louisiana.gov/Faq/QuestionsAndAnswers/55).
The ODR focuses on collecting the following types of delinquent debts:
- Taxes
- Fees
- Fines
- Penalties
- Other obligations owed to the state
The ODR utilizes various methods to collect debts, including:
- Phone calls
- Letters
- Wage garnishment
- Bank account levies
- Property liens
- License suspension
- Referral to private collection agencies
Legal Authority
The Louisiana Office of Debt Recovery (LODR) operates under the legal authority granted by Louisiana Revised Statute 39:371-378 and Title 56 of the Louisiana Administrative Code. This grants LODR the power to collect certain delinquent debts owed to the state of Louisiana or any of its departments, agencies, boards, or commissions.
Some of the key laws and regulations giving LODR authority include:
- Louisiana Revised Statute 39:372 – Establishes LODR and authorizes it to contract with private collection firms to collect delinquent debts.
- Louisiana Revised Statute 39:375 – Requires all state agencies to notify LODR of all accounts receivable over 90 days past due and to transfer any accounts over 180 days past due to LODR for collection.
- Louisiana Administrative Code Title 56, Part III – Outlines LODR’s organization, programs, policies and procedures for debt collection.
LODR utilizes this legal framework to fulfill its duty of pursuing the collection of accounts, taxes, fees, penalties, interest, loans and other obligations owed to the state. All actions taken by LODR to recover state debts must comply with applicable state and federal laws and regulations.
Leadership
The Office of Debt Recovery falls under the jurisdiction of the Louisiana Department of Revenue. The head of the department is Secretary of Revenue Kevin Richard, who oversees all operations including debt recovery efforts. Reporting to the Secretary is Undersecretary Brandon Abadie, who has direct oversight of the Office of Debt Recovery.
The day-to-day operations of the Office of Debt Recovery are handled by Director Cheryl Duvieilh. She manages a staff responsible for the collection of delinquent debts owed to the state. The office works closely with the Attorney General’s office to pursue legal action when necessary against debtors (LDR Executive Management Team).
Performance
The Louisiana Office of Debt Recovery (ODR) collects significant amounts of debt annually for the state. According to the ODR’s Strategic Plan for 2023-2028, the ODR has a goal to increase the number of authorized collection tools used in order to enhance performance. Specific metrics related to ODR’s debt collection include:
- In 2021, the ODR collected over $55 million in individual income tax debt.
- The ODR has an overall success rate of 65% in collecting eligible debt referred to their office.
- The ODR utilizes a variety of collection tools to maximize debt recovery, including tax refund intercepts, license and permit suspensions, liens and seizures.
By centralizing debt collection efforts, utilizing best practices, and expanding their collection tools, the ODR aims to continuously improve their performance in recovering debt owed to the state of Louisiana.
Partners
The Office of Debt Recovery works closely with other Louisiana state agencies to collect unpaid debts owed to the state. According to the Office of Debt Recovery FAQ, the office partners with agencies like the Department of Revenue, the Office of Motor Vehicles, and the Department of Justice to recover debts related to taxes, traffic violations, fees, fines, penalties, and other obligations. By centralizing debt collection efforts, the ODR is able to effectively leverage resources across agencies.
Policies
The Office of Debt Recovery (ODR) follows the debt collection policies and procedures outlined in Louisiana Revised Statute 47:1676. This law establishes ODR’s authority to collect on delinquent debts owed to the state and outlines the following key policies:
ODR has the authority to collect current, delinquent, and final state tax liabilities pursuant to La. R.S. 47:1561-1565 and other debts owed to the state. ODR can utilize external collection contractors and agencies for the purpose of debt collection (La. R.S. 47:1676 B.).
All data, records, and files utilized by ODR for debt collection are considered confidential and privileged. No person can divulge or disclose this information except as necessary for debt collection purposes (La. R.S. 47:1676 C. (2)).
ODR can assess collection fees up to 25% on debts it collects. The collection fee is in addition to any penalties or interest owed (La. R.S. 47:1676 C. (1)(a)).
ODR has the power to waive, dismiss, or compromise any debt owed to the state if it is deemed uncollectible (La. R.S. 47:1676 D.).
ODR must develop policies and procedures approved by the attorney general to govern the collection of debt. This includes establishing review procedures when a protest of debt, penalty, or interest is made by a debtor (La. R.S. 47:1676 F.).
Public Feedback
The Louisiana Office of Debt Recovery has received a number of complaints and negative reviews from the public, particularly regarding their debt collection tactics. According to the Better Business Bureau, there are over 130 customer complaints alleging issues like harassment, improper communication tactics, and problems with billing or collection. Many reviews describe aggressive and persistent debt collection calls. There are also complaints about the office demanding payment without providing documentation to validate the debt.
Overall, the public feedback indicates many people feel the Office of Debt Recovery utilizes overly aggressive collection methods without appropriately validating debts. This has resulted in numerous consumer complaints and negative reviews, particularly on complaint platforms like the Better Business Bureau. The office may need to re-evaluate its debt collection strategies and communication policies to improve public perception.
Contact Information
The Louisiana Office of Debt Recovery can be contacted by phone, mail, email, or through their website:
Phone: 225-219-2188 or 844-330-6176
Address:
Louisiana Office of Debt Recovery
P.O. Box 3317
Baton Rouge, LA 70821
Email: [email protected]
Website: https://revenue.louisiana.gov/Faq/QuestionsAndAnswers/55
When contacting by mail, the office requests that payment is made payable to the Louisiana Office of Debt Recovery.
Conclusion
In summary, the Louisiana Office of Debt Recovery provides crucial services to the state by collecting delinquent accounts and unpaid fees on behalf of state agencies. They have legal authority granted through state laws to perform collection services. The office is led by a group of dedicated public servants who aim to recover funds owed to the state in a professional manner. Their performance can be evaluated through metrics like dollars collected and accounts resolved. The ODR works closely with partner agencies while following proper policies and procedures. Feedback from the public is important for improving operations. Contact information is available for questions about ODR processes. Overall, the Louisiana Office of Debt Recovery performs an important function for government finance and operations in the state.