Interagency Intercept Collection Program
State of California Franchise Tax Board Interagency Intercept Collection Program
The University of California, Davis participates in the State of California’s Franchise Tax Board (FTB) Interagency Intercept Collection Program to recover past due funds owed to the University. All past due to balances, whether on a student or employee account as well as delinquent long-term loans, are subject to being referred to the FTB for interception of any state tax refund available to an individual. As long as there is a balance owed to the University and we continue to take part in the program, we will attempt to contact the responsible party for the delinquent account and notify them of their account’s submission to the program. Notifications are sent out once a year in early October to the debtor’s most recent address on file. Even if the notification is returned from the post office, the eligible delinquent account will still be subject to referral to the FTB.
Submission to the FTB Interagency Intercept Collection Program does not have the same consequences as being sent to a collection agency, as the FTB referral does not get reported to the credit bureaus. Due to the fact, the FTB’s program results in an interagency transfer of funds and is not active debt collections, referral to the FTB program does not preclude the same delinquent account from concurrently being referred to a debt collection agency. If an intercept is received from the State of California towards a delinquent account that is also placed with a debt collection agency, that payment will be reported to the collection agency.
More information regarding the State of California Franchise Tax Board Interagency Intercept Collection Program.