Accounts Receivable Management Featured Article

Some Municipalities Turn to Debt Collection Companies to Recover Fines and Fees and Boost Revenue

January 02, 2013

As towns, cities and other municipalities struggle with reduced budgets and trying to make ends meet with less, many are discovering that they do, in fact, have a revenue source to boost: collecting small fees and fines owed to them. These types of small debts – court fees, property fines and others -- are often ignored by municipalities, since they cost more to pursue than they are worth. Taken in aggregate, however, they can add up to big dollars for cash-starved town halls.

Increasingly, towns and cities are turning to professional debt collection solutions and services to recover money owed to them. Lee County in Northeast Mississippi is one of them.

According to a local Daily Journal article, “A firm to collect back-debts for garbage or justice court fees got Lee County’s approval Monday.” The article states that Lee County is looking to collect roughly $1 million in long overdue fees and fines from Lee County Justice Court.

Debt collection agency Rapid Recovery Solution is hoping to be the beneficiary of the county’s approval.

John Monderine, CEO of Rapid Recovery Solution, says he knows how important it is for small counties to collect large debts owed to them.

“It is great seeing a county like Lee County pushing forward to collect a large debt of $1million,” said Monderine. “This money is rightfully owed to them, and there is no reason why they should have to wait any longer to collect it.

By outsourcing debt collection services to a professional organization, counties can eliminate the need to boost manpower on their own payrolls chasing down small debts, and can instead recover most of what is owed to them with little effort on their own part.

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Edited by Brooke Neuman

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