If you’ve ever defaulted on a loan or credit card, you have likely had creditors knocking on your door. If you fail to pay what you owe, many creditors hire private debt collection agencies to chase after you and try to recoup some of that cash, even if it’s just pennies on the dollar. But what happens if you fail to pay your city’s water or trash bill?
The practice of hiring debt collectors was primarily reserved for private companies, but things have changed in this shaky economic climate.
Several city governments are now relying on private debt collectors to gather up funds from residents for unpaid utility bills. It’s part of a larger trend of government agencies, such as school boards, county courts and libraries, to hire third parties to do the dirty work of debt collection.