| City approves collections contract for unpaid fines |
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By: CHRISTIAN GRANTHAM, Post Contributor
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Posted: Friday, April 8, 2011 9:22 am
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The Murfreesboro City Council approved a contract Thursday to help streamline the city's effort to collect unpaid fines.
The contract with Professional Recovery Management, Inc. (Fox Collection Center) will allow the city to go after close to $3 million a year of unpaid fines mostly through the city's court system. All councilmembers voted for the contract, but at least one councilmember expressed concern about how the city will be represented.
"With the economy the way it is, since this firm is going to represent the city of Murfreesboro, I guess I have a concern with the tactics or techniques," Councilmember Madelyn Scales Harris said. "I know it's against the law to harass people, but I have a concern with how this firm is going to handle this."
One concern expressed is how non-payment will affect the credit rating of tax payers. For years, if the city did not collect fines, the fines simply went unpaid. Under a new contract, the private firm will report unpaid fines to credit agencies.
"We've set very specific guidelines of excess of $50 before you can be reported to a credit agency. They will try to contact the debtor one to three times." Assistant City manager James Crumley said.
Harris reiterated the need to watch over time how the new collections agency represents the city to taxpayers. Harris also gave voice to those who enter the court system while passing the financial consequences on to the city and other taxpayers.
"Especially with the economy the way it is today, some people just flat don't pay bills. I just want to make sure that we're looking at that." Councilmember Harris said.
The economy is a big factor in the city's decision to get tough on collections. Prior to the contract, the city had no one solely dedicated to collections. Under the new contract, the collections agency will only get paid a portion of what's collected.
"I think it's a fair proposal, and court fines are ticking up every year," Councilmember Shane McFarland said. "Last year it was slightly over, what, $3 million dollars? This gives us a chance to collect at least something." |
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