No longer will city’s fines just fade away : News-Record.com : Greensboro & the Triad's most trusted source for local news and analysis

GREENSBORO — Do you owe the city of Greensboro cash? Time to pay up.

Later this month, the city will begin sending certain overdue water bills and unpaid parking tickets to two collection agencies. City officials warn residents that the companies may report delinquent payments to credit agencies.

“It can come back to bite you now a little bit on your credit,” said Jeff Kimel, who handles billing issues for the Water Resources Department.

The change is expected to help the city collect $1.1 million in overdue fines and fees, according to City Finance Director Rick Lusk.

City staff members have tried a variety of techniques to collect unpaid parking tickets, which top $2 million. They waived fines for a period. They started towing cars whose owners have overdue tickets. They’ve even garnished income tax refunds.

Greensboro used to have better luck collecting water bills, due to a law that allowed the city to put a lien on a property for unpaid fees. But the City Council recently changed the law so it does not apply to overdue tenant water bills.

That means the city needs another way to collect some $300,000 in unpaid water fees.

Last summer, the city eliminated two delinquent collection agent jobs and hired private companies to take over those responsibilities. The collection agencies — FirstPoint Collection Resources and Municipal Services Bureau — will earn a 20.5 percent fee on what they collect.

The city will send them tenant water bills and parking tickets fines that are at least 45 days past due.

The city has about 2,500 overdue tenant water accounts, dating to July 2010, that will be handled by the collection agencies.

Unpaid parking tickets from as far back as July 2001 also will be sent to the agencies.

Residents still have time to pay before the collection agencies take over their accounts later this month.

For more information about your bills, call 373-2489.

Contact Amanda Lehmert at 373-7075 or amanda.lehmert@news-record.com

elsoots

January 7, 2012 - 8:42 am EST

The city can check they record and of thay got a unpayed fine put a lock on the car so the can not move it till thay pay the fine,that would save to city money (not get someone to get the unpayed fine.)

nhalleycat

January 7, 2012 - 11:37 am EST

That sounds good but there are so many people who owe money it would take a large crew to put a boot on a car to stop them . Plus what about people who do not have a car. ? I would advise all landlords to ask the city to notify them if their tenants fail to pay a water bill so they do not get a mark on their credit due to a tenant not paying the bill.

johnodrake

January 7, 2012 - 8:54 am EST

Lucrative deal for the collection agencies. Assuming that they collected all of the outstanding $1M, they would get $205K. Seems that the city could hire a couple of clerks to do that work for a $100K and pocket the difference.

Traveler

January 7, 2012 - 10:43 am EST

One of the big problems in collections is tracking down people. I'm sure many of the unpaid tickets and water bills are for people who have moved: to a different apartment, to a different city, etc. It takes experience and often some money to track down people.

If it was easy, everybody would be doing it.

Panacea

January 7, 2012 - 9:59 am EST

elsoots: the city has tried towing cars. It hasn't worked. If the car is not worth the tow fees and parking, the owner will let the city auction it off. You can't "put a lock on it", though you could put a boot on . . . creating a parking problem for neighbors.

johnodrake: collections is an intense business. I have friends who've worked as collection agents. You have to call, call, call, hound, hound, hound until they get sick of it and pay up. There are laws regulating this. To be effective, you have to have the resources to keep after the debtor. A couple of clerks don't have this kind of time to go after EVERYONE who owes the city money.

In most states, North Carolina included, debt becomes noncollectable after 3-4 years, and can't go on your credit report after 7. I'm not sure how going after bills from 2001 would work.

mydogcleo

January 7, 2012 - 11:15 am EST

I hope many are not students. Imagine leaving college with a tuition debt and a bad credit rating because of parking and water bills. Hard to get a job or buy a home with those problems hanging around your neck.

January 7, 2012 - 2:02 pm EST

Many students on campus view parking tickets as the price of doing business. The fines are fairly low . . . if you get away with parking illegally and don't get a ticket, and don't have to pay for parking then you come out ahead on when you do get a ticket.

Then if you can just walk away from the ticket with no repercussions, you still end out ahead.

rooster8786

January 7, 2012 - 4:41 pm EST

Panacea, it is obvious you have not been to college in a LONG time, if ever. To graduate nowadays, all campus fines, whether library, laboratory, parking, etc. must be paid in full including late fees and interest accrued. College administrators found too many students with your attitude on campus and found a very effective way to curb: No pay, no diploma. Would you want to tell an employer you met all the graduation requirements except paying off your parking ticket?

January 7, 2012 - 5:01 pm EST

*sigh*

Rooster, I TEACH college, remember? Yes, I know this. That's true for on campus stuff . . . off campus is another matter.

Also, some students never graduate. They just walk away from whatever it is they owe.

And I never said I condoned the behavior, or engaged in it myself.

January 7, 2012 - 4:43 pm EST

In today's economy, I'm betting there are more than a few people who would like to pay their overdue water bill, but prefer to eat and feed their kids. Since their credit is probably already dinged for 7 years, if they hold out for 3-4 years on paying, the collection agency will collect 20% of nothing.

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