COVID-19 payments coincided with record month for debt collection office SD

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PIERRE, SD (KELO) – The state government bond collection center received an unprecedented sum of money in March, just as South Dakota taxpayers received their third round of federal COVID payments- 19.

The bit of serendipity was part of Andy Gerlach’s message to the Legislative Assembly’s Government Operations and Audit Committee on Tuesday.

“It was our biggest month ever, last March,” said the deputy commissioner of the Office of State Administration, presenting the Annual Report.

The administration of then Governor Dennis Daugaard established the center after lawmakers passed state law in 2015 that gave the contractor the right to add a 20% surtax on the principal .

CGI won the original contract but ultimately gave notice that the company did not want to continue as a state collector. The amounts contributed by CGI had decreased a little year after year.

“It really wasn’t a debt collection company. It was a software company, ”said Gerlach.

Reliable capital solutions was selected from a field of six in September 2020 and took over in November 2020.

“They focus on outgoing calls rather than letters,” Gerlach said.

The arrival of Reliant generated an increase of approximately $ 400,000 in collections to over $ 3.8 million for the fiscal year ended June 30, 2021: some due to a new face, others due to from the focus on calls and others by offering affordable payment plans, according to Gerlach.

Virtuoso Sourcing Group and HS Financial Group became new third-party collectors in May of this year.


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