Collecting overdue accounts is vital for municipalities. Besides, these debts may leave your city or county with budgetary problems. In 2019, 60 percent of collection revenue came from nonfinancial debts, i.e., utilities. You need to recover the money that you owe. But the most challenging part is collecting debts seamlessly. A professional municipal debt collection agency can help you deal with such challenges. Here’s what you need to run:
The right information
For seamless collection, it’s essential you have correct debt information. For instance, when people sign up for utility service, you need to have the correct information, such as
- Social security number
- Driver’s license
- Phone number and email address
- Emergency contact or next of kin
Collecting all this information is helpful; you can locate customers in case they stop communicating with the firm.
Seamless communication process
Municipalities need to mail notices and invoices to individuals or households when bills go overdue. An efficient and organized process makes the collection more accessible. Besides, here you have the option to enhance the overall business efficiency by sharing resources.
- Share resources
Vendors that provide volume discounts for billing, invoices, and lettering helps cut costs. Shared resources also help you send notices in a timely manner.
- Schedule
For tax bills, it’s highly essential to set a date to send the invoices in advance. You have the option to advertise the data through diverse means of communication. You may go for municipality website or fliers in public places
- The final bill
You need to forward delinquent customers a final bill. Moreover, it can be an outstanding account notice. You need to let customers understand they’re liable for paying, including any other additional fees. A clearly marked notice motivates people to pay the bills.
Work on past due accounts quickly
If the accounts turn overdue, you need to prepare to turn them over as quickly as possible. The sooner you start the process, the greater the chance of getting paid quickly. Besides, the collection takes time, and effort and you are already busy with other tasks. Therefore, time to notify customers of overdue bills can ensure seamless payment.
A professional municipal debt collection agency won’t hesitate to notify customers of overdue bills. In extreme cases, you may have to inform the affected service. Also, it’s best to turn the account over to collections after a certain amount of time. You may want to set a limit of 60-90 days.
In case the local or state statutes allow additional collection fees, you may go for an overdue billing notification. The agents will advocate adopting these types of fees the municipality doesn’t have.
Reporting software
With the right software, you can improve debt collection procedures. The account receivables software lets you send documents to customers via email or by a registered post. The online payment function makes paying bills easy. Besides, more consumers can now pay seamlessly. However, collection service providers may use the digitally advanced service ensuring payment access 24×7. Also, the software should organize each customer separately. It’ll notify you when a bill becomes overdue.
Most municipal debt collection agencies include integrated collection functions. This completes the staff tasks, including
- Appointment scheduling
- Customer interaction
- Comprehensive documentation
- Setting up and maintaining payment plans
The software should create a report with valuable data. These reports emphasize increased transparency for municipal accounts receivables. In addition, you may use the information for budgeting purposes and further set goals.
Debt collection law
The collection process must comply with federal, state, and local regulations. This protects you against lawsuits. Moreover, it helps ensure you’re dealing with the right customer.
- Fair Debt Collection Practices Act (FDCPA)
The third-party debt collection agency you partner with must comply with the FDCPA compliance. This law was passed to stop abusive, deceptive, and unfair debt collection procedures. Besides, it covers household debts, including municipal utility bills.
The law regulates what the municipal debt collection agency may do to recover a debt.
- State Fair Debt Collection Practices Legislation
States have their laws regulating the debt collection process. However, the legalization varies from one state to another. State laws are similar to the FDCPA. But some states may regulate the original creditor to third-party agencies.
Manage collections
A delinquent account can be one of the most challenging tasks to collect. Citizens want the best amenities. For that, there should be a seamless flow of cash. Besides, good cities and counties provide excellent service, and these equally come at some cost. Now, some residents find themselves in a tough place. In that case, they have more bills than money. The right agency helps collect dues strategically.
The process required for a collection agency
Most local government entities may not require a specific contracting process. However, it’s best to include a request proposal (RFP) process. This helps you identify the most qualified collection agency. In addition, any contract needs to be authorized by the entity’s governing body or follow the entity’s contract approval procedures.
Statute of limitation
For most firms, the statute of limitation counts from when the debt is unpaid. This is usually 30 days from the last payment on your debit account. However, if you fail to pay until the statute expires, the creditor can’t file a lawsuit for the debt.
The municipal debt collection agents will contact you to request payment because you’re still responsible for the debt even when the collection limit has expired. However, as soon as there has been forfeited in the payment again, the agency may file a lawsuit. The court issues a garnishment order to allow collectors to garnish a portion of the paycheck until the debt gets cleared.
Find the right service provider
In order to manage your municipality’s budget, it’s essential to look after the debt collection process. However, going with an internal process can be challenging. It’s time-consuming and labor-intensive. Meanwhile, using a municipal debt collection agency can help you expect better results. To manage all the concerns, it’s best to partner with a team of experts. Our municipal collection services can help you recover the money without having any issues with the customer.
