Monday, January 19, 2009

SAO Outsources Collections

A recent news article reported that the McHenry County State's Attorney's Office has contracted with an out-of-state firm to collect $300,000 in unpaid fines.

Usually, collection agents take their cut out of the money collected. According to the Northwest Herald article on January 15, the firm, of Gig Harbor, Washington, will be allowed to add up to 30% to the amount owed for their efforts.

No one should think for five minutes that it will collect 100%. I wonder if the SAO analyzed the accounts and determined what percent was likely to be collected - also, why its own collection efforts had not been successful.

Does it know where all the culprits are? How many are without funds? Does the phrase, "You can't get blood out of a turnip" apply here?

In a recent hearing at the courthouse, a man showed up for the final stage in his court case, which ended two years ago this month. Last week the representative from the SAO told the judge that this man still owed his $2,700 fine.

After a short delay, the SAO realized that there had been a "bookkeeping error" and acknowledged that this man's fine had been paid in full!!!

What kind of carelessness loses track of a $2,700 fine? And why didn't they take action within the past two years, if they thought he hadn't paid his fine. They knew exactly where he was - only a letter or a phone call away. Was this $2,700 in the $300,000 that the collection agency thought it could collect?

How much of the $300,000 was handled in the same way as this $2,700?

Another question for the SAO is, "Why didn't you hire a northern Illinois business to collect this money?" There are certainly collection agencies in McHenry and Lake County that might have wanted the business. Or maybe they looked at it and didn't want it.

Why did you contract with an out-of-state firm? Were bids solicited for this contract? Were you guaranteed a minimum collection amount?

Let's hope the public is kept apprised of the results of this contract and also of the results of its collection attempts. Debt collection agents are bound by tight rules. How many will they find who have declared bankruptcy or who are incarcerated or who just are absolutely unable to pay?

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