Showing posts with label government collections. Show all posts
Showing posts with label government collections. Show all posts

Tuesday, January 15, 2013

Are Government And Municipality Collections The Area To Focus In As Debts Mount For Cities And Towns?

Image courtesy of  Pat Hawks

Due to the limited number of personnel and the enormous amount of work to be done in all facets of city and town business, it is often difficult for these entities to collect unpaid taxes, fines, and other debts owed by citizens.  However, every unpaid debt, regardless of the amount owed, affects the city or town’s operating budget to a degree.  With states cutting the budgets of local governments more and more each year, it is important that as many debts as possible are recovered. 

Government and municipality collections may be the area to focus in as debts continue to mount in cities and towns.  With a provider of collections to continue collection efforts on their behalf, local government agencies can focus on their daily business.  While some debtors may find it easy to disregard correspondence from their local government or municipality agency in regards to a debt, collections services can be much more effective.  One reason for this is the amount of time and effort that a collection service can put into collection attempts.  Town and city governments are limited in the amount of time they can put toward making phone calls and writing collection letters to recover debts, but this is not the case for a collection service specializing in such matters. 

With the focused collection attempts provided by a collection service, the debtor will not be able to ignore the collection attempts, which were likely more limited and sporadic when provided by local agencies.  When the debtors realize that the matter of their debt is not going to be dropped, they will be more likely to pay the debt.  The push from a government and municipality collection service may be just what is needed to get the debt settled.  Although it is not likely that every debt will be recovered, the percentage that are will be a boon for the city or town’s budget.  

Tuesday, November 20, 2012

Government Collections and What a Government Contract Can Mean for Your Collections Agency



According to ACA International’s website, the U.S. Government obtains the help of private collection agencies to collect on non-tax debts that are owed to the Federal Government.  The agencies that use PCAs for collections purposes include the U.S. Department of Education, the Department of Health and Human Services and Department of Treasury’s Bureau of Financial Management Service. 

According to the site, “in fiscal year 2010, PCAs under contract with the departments of Education, HHS and Treasury had referrals of $35.9 billion in delinquent federal debt. PCAs collected $777 million in FY 2010.” (Source: Department of Treasury Fiscal Year 2010 Report to the Congress—U.S. Government Receivables and Debt Collection Activities of Federal Agencies)

The government seeks private collections agencies and collections attorneys to assist with its debt collection and aid in establishing repayment agreements with debtors.  The government also hires private collections agencies and collections attorneys to help determine whether a debtor is deceased, disabled, bankrupt, or out of business.  In addition to the Federal Government, state governments also use private collections agencies to collect on delinquent taxes and other debts owed to the state. 

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