Notify debtors in writing
- At least 30 days before submitting a debt to the SCDOR, you must send a notification letter to the debtor. The
Setoff Debt Collection Act (SC Code 12-56) outlines the requirements of this notice, including the language that must be used. The SCDOR also provides a letter template that includes the required language from the Code through the GEC-1, Notice Letter to Debtor.
- The claimant agency must mail the letter to the address the debtor provided at the time the debt was incurred or to the debtor’s last known address.
- The SCDOR is responsible for notifying a debtor once collection actions begin.
- If a debtor’s tax refund is garnished, the SCDOR will mail the taxpayer a Notice of Refund Adjustment.
- If a debt is being collected through GEAR, the SCDOR sends a notice to the debtor before any collection action.
Answer debtor questions
Claimant agencies are responsible for communicating with debtors regarding their debt.
- Accurate contact information must be provided to your debtors on their notification letters.
- Claimant agencies should be available to answer any questions for debtors regarding the debts submitted for collection.
- Claimant agency Setoff Debt and GEAR Coordinator contact information is provided on SCDOR notices to debtors. The contact information used for this purpose is pulled directly from the
GEC-6, Notice of Participation form you submit to enroll in the Setoff Debt and GEAR programs.
Address protests timely
The debtor may file a written protest with the claimant agency, using contact information provided in the notification letter issued by the claimant agency. The requirements for the written protest are outlined in section 63 of the
Setoff Debt Collection Act (SC Code 12-56-63).
If you receive a written protest from the debtor, you must:
- Immediately notify the SCDOR of the protest if the debt has been sent to the SCDOR
- Schedule an informal hearing
- Notify the debtor of the date, time, and location of the informal hearing using the address the debtor provided in the Notice of Protest
The Hearing Officer your agency appoints is responsible for the informal hearing. At the hearing, the debtor is allowed to present evidence, documents, and testimony as to why the debt is not due.
Once a decision is made, the agency’s Hearing Officer must submit a
GEC-3, Decision of Hearing Officer to the SCDOR certifying the determination of the hearing.
The debtor can appeal the Hearing Officer's decision with the Administrative Law Court as outlined in the Setoff Debt Collection Act (SC Code 12-56).