Debt collection outsourced in Georgia to recover millions

Fulton County, GA, has hired four private debt collection services to seek $7 million in old fines and fees currently past due. Details and downloadable resources from the FTC are inside.

With more than 43,000 outstanding traffic tickets, Fulton County, GA, hired four private debt collection services to seek $7 million in old fines and fees currently past due.

The county expects the firms—Harris & Harris, Goggan Blair & Sampson, Municipal Services Bureau and Penn Credit Corp.—to bring at least $2 million.

According to reports, the county is trying to avoid a tax hike and sees this effort as a means of increasing revenue. With concerns about the debt collectors abusing citizen information in other parts of the country, the county’s Magistrate Court has insisted that all the firms send letters giving defendants at least 10 business days to either pay a fine or receive a new court date, with any late fees being waived.

Part of the reasoning for the county’s extra protection for debt holders regards the Fair Debt Collection Practices Act, which doesn’t cover government penalties. The FDCPA doesn’t allow debt collection agencies to call past 9 p.m., use abusive language, or seek funds using false identities.

Nearby Cobb County resorts to suspending licenses for unpaid traffic tickets. They have found that to be an effective means of receiving past due fines.

Read the original coverage here.

You can also download a copy of the FDCPA, or access a FAQ written by the Federal Trade Commission

Information on the four collection firms can be found below: