What is the statutory liability for collecting from the wrong person?
The local government must return all setoff money, including the local collection assistance fee of $15 and the Department of Revenue’s collection assistance fee. Keep good documentation to show how error occurred. If this occurs, the local government can contact the Clearinghouse who will work with the Department of Revenue in generating a letter requesting all funds recovered for this debtor. The Clearinghouse will return its fees as will the Department of Revenue.
