Government debt collection differs from ordinary debt collection in several crucial ways. Debt collectors who go after people who miss the due date on their credit cards or skip mortgage payments have one set of skills, but debt collectors who work for the government need another set entirely.
Some people don't even consider the fact that the government has debt collection concerns. However, they have income they rely on to keep running just the way ordinary businesses do. If the incoming receivables stop, the government can not run smoothly.
Some areas where the government collects debt don't require outside help. Tickets, whether they are for parking or for speeding and other traffic offenses, require the offender to pay or they will lose their driving privileges. Library fines come with suspended borrowing privileges. In most cases, the fines are low enough in these two areas or the punishment is high enough that there's not a problem in collecting on them.
Some strategies for government debt collection include making arrangements to get delinquent accounts back in good standing, employing third party collection agencies, and employing collection agencies that also handle first party billing.
Once a bill has been unpaid for more than 60 days, the chances that it will never be paid rise steeply. If you've been unable to collect on a bill past the 60 day mark, it's time to get a professional debt collector that is familiar with government debt collection involved. A good agency will know how to coerce people to pay on default accounts.
Alternatively, you can hire collections people who do the billing for you right at the start of the process. This is a good option for municipalities, since having a third party company do collections for you saves both time and money. Should an account go into default, the agency can start collections techniques immediately.
A collections agency that specializes in government debt issues will use the most proven techniques to recover money before steps are taken such as turning off utilities or foreclosing on property due to taxes. For the municipality, it's preferable to make money on the account without having to get involved in expensive prospects like foreclosures or expend labor on turning off utilities and then having to turn them back on again.
Another advantage to handling government debt collection this way is the reduction in operational costs such as phone and mailing. Debt collectors who specialize in government clients get major volume discounts in these areas. They pass the cost savings on to you and are able to get more money back more quickly at lower cost to you. The best part about this is that you don't even have to pay them until they recover anything. Their fee is usually taken out as a percentage of whatever recovery they accomplish. If government debt collection touches your area of responsibility, you should definitely consider hiring a specialized collection agency that understands government collection sooner rather than later.
Some people don't even consider the fact that the government has debt collection concerns. However, they have income they rely on to keep running just the way ordinary businesses do. If the incoming receivables stop, the government can not run smoothly.
Some areas where the government collects debt don't require outside help. Tickets, whether they are for parking or for speeding and other traffic offenses, require the offender to pay or they will lose their driving privileges. Library fines come with suspended borrowing privileges. In most cases, the fines are low enough in these two areas or the punishment is high enough that there's not a problem in collecting on them.
Some strategies for government debt collection include making arrangements to get delinquent accounts back in good standing, employing third party collection agencies, and employing collection agencies that also handle first party billing.
Once a bill has been unpaid for more than 60 days, the chances that it will never be paid rise steeply. If you've been unable to collect on a bill past the 60 day mark, it's time to get a professional debt collector that is familiar with government debt collection involved. A good agency will know how to coerce people to pay on default accounts.
Alternatively, you can hire collections people who do the billing for you right at the start of the process. This is a good option for municipalities, since having a third party company do collections for you saves both time and money. Should an account go into default, the agency can start collections techniques immediately.
A collections agency that specializes in government debt issues will use the most proven techniques to recover money before steps are taken such as turning off utilities or foreclosing on property due to taxes. For the municipality, it's preferable to make money on the account without having to get involved in expensive prospects like foreclosures or expend labor on turning off utilities and then having to turn them back on again.
Another advantage to handling government debt collection this way is the reduction in operational costs such as phone and mailing. Debt collectors who specialize in government clients get major volume discounts in these areas. They pass the cost savings on to you and are able to get more money back more quickly at lower cost to you. The best part about this is that you don't even have to pay them until they recover anything. Their fee is usually taken out as a percentage of whatever recovery they accomplish. If government debt collection touches your area of responsibility, you should definitely consider hiring a specialized collection agency that understands government collection sooner rather than later.
About the Author:
David P. Montana has been a prominent industry expert, business consultant and writer in collection agency services for three decades. He offers additional valuable tips and resources on government debt collection.
