Chapter 3.55
USE OF COLLECTIONS AGENCIES
Sections:
3.55.020 Collection agency use procedures.
3.55.030 Establishment of collection fees.
3.55.010 Authority.
Pursuant to RCW 19.16.500, the city’s finance director, or authorized representative, shall have the authority to refer delinquent public debts, penalties, and accounts to an agency for collection and/or to write off public debts and accounts determined by the director to have no cost-effective means of collecting the public debt or account. For purposes of this chapter, public debt includes, but is not limited to, any fees, penalties, or other charges due to the city. (Ord. 23-652 § 8 (Exh. A)).
3.55.020 Collection agency use procedures.
A. In addition to other remedies for collecting amounts owed to the city, the city may retain, by written contract, the services of a licensed collection agency to collect public debts owed by any person pursuant to the procedures set forth in this chapter. If the city retains a collection agency to collect public debts owed to the city, a fee, payable by the debtor, shall be added to the outstanding debt for the collection agency fee incurred.
B. Before assigning a debt to a collection agency, the city must send the debtor a written bill for the debt amount.
C. If a debt amount owed to the city is not paid within 30 days of the date on which the amount becomes due, the finance director may send a written notice, by regular or certified mail, to the debtor’s last known address according to the city’s records. The written notice shall state the amount owed to the city, the amount of any applicable interest and penalties, that the city may assign the debt to a collection agency for collection if the amount owed, together with any applicable interest and penalties, is not paid in full within 30 days of the date of the written notice. The written notice shall also state that if the city assigns the debt to a collection agency, the city shall charge the debtor a fee to be added to the outstanding debt for the collection agency fee incurred or to be incurred as provided in this chapter.
D. If the amount owed to the city, together with applicable interest and penalties, is not paid in full within 30 days of the date of the written notice as provided in subsection (C) of this section, the city may assign the debt to a collection agency to collect the outstanding debt, together with any applicable interest, penalties and the collection agency service fee.
E. Collection agencies assigned debts under this chapter shall have only those remedies and powers which would be available to them as assignees of private creditors. (Ord. 23-652 § 8 (Exh. A)).
3.55.030 Establishment of collection fees.
A. There are hereby established fees to cover the additional costs to collect overdue amounts to the city. Such fees shall include but not be limited to the additional direct costs of pursuing delinquent collection including such things as direct costs, obtaining the services of a collection agency, and administrative charges incurred in creating and maintaining each past due account receivable.
B. A fee equal to the amount of the city’s additional collection efforts, up to the statutory limitations in place at that time, shall be added to the original outstanding debt due to the city.
C. A collection agency fee as set forth in the contract between the city and collection agency shall be added to the original outstanding debt due to the city on each account turned over to the collection agency to cover the costs of administering and maintaining the collection program within the city. (Ord. 23-652 § 8 (Exh. A)).