(a) If an advance recipient defaults, before assigning the payment obligation to a third party for collection and before initiating a court action against the recipient, a licensee
Terms Used In Alaska Statutes 06.50.550
action: includes any matter or proceeding in a court, civil or criminal. See Alaska Statutes 01.10.060
Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(1) shall attempt in good faith to contact the advance recipient at reasonable times by telephone or mail to discuss the delinquency and to offer the recipient a payment plan under (2) of this subsection;(2) shall offer the recipient a payment plan under which
(A) the recipient may repay the delinquent advance over an extended period of time, which may not exceed six months;(B) at least five percent of the outstanding balance is due when the payment plan is signed;(C) an additional fee by the licensee is not allowed, except for a bad check fee for costs as allowed under Alaska Stat. § 09.68.115(a)(2);(3) in addition to the contact required by (1) of this subsection, shall send a certified letter to the recipient’s last known address at least 15 days before the action that makes the offer described in (2) of this subsection and that informs the recipient of the licensee’s intent to proceed with a court action.(b) The licensee may initiate a court action against a defaulting recipient to recover damages and costs allowed under Alaska Stat. § 09.68.115 if the licensee has complied with (a) of this section. Notwithstanding Alaska Stat. § 09.68.115, the total of all damages and costs, including damages recovered under Alaska Stat. § 09.68.115(a), may not exceed the amount of the payment by $700.
