HRS §231-56
State can charge for collecting debts through setoff
The State can charge a fee for helping collect a debt by taking money from a payment. The fee cannot be more than the money collected. After the fee is taken, the rest goes to the agency that asked for the setoff.
debtorsstate agencies
The statute, as written — Charges for setoff; credit to agency
The State may charge the claimant agency for the cost of the setoff; provided that the charges shall not exceed the proceeds of the collection. The State may designate a single percentage to be retained from the proceeds of the setoff as a charge for cost of assistance. The net proceeds of a setoff, after deduction of any charge, shall be credited to the claimant agency's account or fund.
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