Effect of waiving a debt on the recovery fee 107-05120060

Before considering whether a debt waiver is appropriate, Debt Staff raising the debt must:

• investigate and raise working age payment debt shell as per normal procedures, and
• consider if a 10% recovery fee may apply

If applying a 10% recovery fee, it forms part of the working age payment debt. It is subject to the usual methods of recovery or non-recovery:

• if waiving all of the debt, do not add a recovery fee. Waive the debt as per normal procedures
• do not apply a recovery fee to the waived portion of a debt. If a working age payment debt is already raised and a recovery fee applied:
• remove the recovery fee
• recalculate the recovery fee based on the new debt amount. Part settlement (discount) for an outstanding debt can apply where a Recovery Fee exists

The recovery fee can never be more than 10% of the amount raised.