17.5.5  Overdue Payments

A JAL payment and or in-kind service is considered past due if not received in full and reported in CARES by the 25th of the month; however, agencies have until the end of the calendar month to enter payments without causing a past due notice to be generated. CARES will issue a notice to inform the loan recipient of the past due payment. This notice is called a “dunning” notice. A second past due payment generates a second dunning notice to the participant.

After the third missed payment and dunning notice, PACS will certify the debt to the Wisconsin Department of Revenue to recover the outstanding balance. Once the loan is considered delinquent, which is defined as 3 missed payments over the life of the debt, the entire outstanding balance must be recovered in cash whether or not the initial repayment agreement included a partial repayment through in-kind community service.

 

 

History: Release 22-02.