Cities that use collection agencies for overdue garbage payments
Cities across the United States, from small rural towns to large metropolitan cities, are having trouble collecting monthly fees for garbage collection. The downturn in the economy has hit both public and private service providers, city garbage collection is not immune to this and cities are now looking for ways to improve cash flow and allow the service to remain viable for the residents of the city. Many cities are now using collection agencies to collect overdue accounts and the results so far are positive.
When a resident signs up for a service like garbage collection, many people see it as a small bill that won’t even be included in the monthly budget. After all, what’s a few bucks when you make thousands a month? Usually the few dollars per month ends up not being a big deal. Especially in recent years, when investments were skyrocketing, annual salary increases were standard, and total net worth was skyrocketing. Of course, no one predicts that the breadwinner will be fired without notice. Also, unemployment rates are rising close to 9%, even higher in some areas, so new jobs are not as easily obtained as in the past. This is the cold, hard truth that many families face and when it comes to feeding little Johnny and Maria, that will always come before paying the cell phone bill or the garbage collection bill. Cities realize this and the numbers don’t lie when it comes to cash flow.
The occasional customer will forget to pay a bill or send the bill on time, this is to be expected with any service that bills customers monthly. The city’s garbage collection departments realize this too, which is why if a customer is late due to an NSF check or just doesn’t mail a payment, they just send a notice. Usually within the next 7-10 business days, the account will be paid and returned to its current status. Another step garbage collectors will take is to post an expiration notice on your dumpster for all your neighbors to see, which can be a shocking but sobering experience. After another 60 days have passed, that’s when the city realizes the account probably won’t be paid unless other steps are taken. A collection agency can locate a customer with skip tracking tools that will be able to provide information that the city may not have been able to obtain. Information such as former spouses, former employers, neighbors and relatives. The collection agency will make a few calls to people and get all the information needed to contact the customer. In most cases, the person will call the collection agency wondering how they had the nerve to call their former spouse after the phone call causes a fight with the current spouse.
Collection agencies, after locating the customer, can secure a payment plan for the owner of a past due account to pay off the debt. In many cases, the client has simply moved due to various reasons and will happily pay the amount due in one payment. Even if it’s just a few paying customers each month, this is additional income for cities that never came in the past and requires no additional work. In the sluggish economy, city services are being cut altogether and any extra income that can be earned can be the difference between keeping employees on the payroll or laying off the customer. Keeping services running and people working is always a plus, even if it means hiring a collection agency.
