2.2-4805 - Interest, administrative charges and penalty fees. - Virginia Statutes

§ 2.2-4805. Interest, administrative charges and penalty fees.

A. Each state agency and institution may charge interest on all past dueaccounts receivable in accordance with guidelines adopted by the Departmentof Accounts. Each past due accounts receivable may also be charged anadditional amount that shall approximate the administrative costs arisingunder § 2.2-4806. Agencies and institutions may also assess late penaltyfees, not in excess of ten percent of the past-due account on past-dueaccounts receivable. The Department of Accounts shall adopt regulationsconcerning the imposition of administrative charges and late penalty fees.

B. Failure to pay in full at the time goods, services, or treatment arerendered by the Commonwealth or when billed for a debt owed to any agency ofthe Commonwealth shall result in the imposition of interest at the judgmentrate as provided in § 6.1-330.54 on the unpaid balance unless a higherinterest rate is authorized by contract with the debtor or provided otherwiseby statute. Interest shall begin to accrue on the 60th day after the date ofthe initial written demand for payment. A public institution of highereducation in the Commonwealth may elect to impose a late fee in addition to,or in lieu of, interest for such time as the institution retains the claimpursuant to subsection D of § 2.2-4806. Returned checks or dishonored creditcard or debit card payments shall incur a handling fee of $50 unless a higheramount is authorized by statute to be added to the principal account balance.

C. If the matter is referred for collection to the Division, the debtor shallbe liable for reasonable attorney fees unless higher attorney fees areauthorized by contract with the debtor.

D. A request for or acceptance of goods or services from the Commonwealth,including medical treatment, shall be deemed to be acceptance of the termsspecified in this section.

(1988, c. 544, § 2.1-732; 2001, c. 844; 2009, c. 797.)