City uses collection agency - considers adding 30%collection fee

[debtcollector`]

Local Collection Agency Wins City Collection Contract

by Mike Bevel,
insideARM.com
May 18, 2007

Plum Borough, Penn., is washing its hands of delinquent sanitation bills, and is instead letting Creditech Inc., a collection agency based in Bangor, Penn., do the heavy lifting.

Plum Borough is out about $470,000 thanks to folks who assume the trash fairy takes care of the garbage pick-up in their neighborhoods (and therefore, there’s no need to pay). Council members voted to turn the collection over to an agency after borough staff exhausted options to recoup the money.

Plum Borough’s council went with Creditech Inc., because the company doesn't get paid unless it is successful. The council is also considering adding a 30 percent collection fee to all unpaid bills to offset Creditech’s fee.