220-05
BAD DEBT (COURT)

POLICY & PROCEDURE

Subject:

BAD DEBT (COURT)

Index: Finance (Court)

Number: 220-05

Effective Date

5/1/2003

Supersedes

N/A

Page

1 of 2

Staff Contact

Joe McGuire

Approved By

Jesse Tanner

1.0 PURPOSE:

To establish a policy for handling the collections of bad debt in Renton Municipal Court.

2.0 ORGANIZATIONS AFFECTED:

Renton Municipal Court

3.0 REFERENCES:

RCW 19.16.500

RCW 62A.3-515

RCW 3.02.045

Policy & Procedure 220-06, Handling and Collection of Returned Checks (Court)

4.0 POLICY:

4.1    The Municipal Court is responsible for formulating, implementing, and conducting the Court’s collection efforts.

4.2    It is a policy of the Court that when accounts are determined to be delinquent by the Court these accounts will be referred to the Court’s designated collection agent.

5.0 DEFINITIONS:

5.1    Debt: For the purpose of this policy, debt is defined as money due to the Court for any reason.

5.2    Bad Debt: Bad debt is defined as money owed to the Court, which has not been paid, due to non-response of the debtor or because negotiable items (i.e., check, money order, etc.) were not honored (by the bank, credit union, etc.) for any reason.

5.3    Customer: Any person, any organization, any business receiving any service or doing business with the City of Renton Municipal Court.

5.4    Delinquent: Refers to any penalties, fines, fees, costs, assessments, forfeitures or other debt owed to the Court that have not been paid in compliance with state statute, city code or court order.

5.5    Collection Agent: A collection agent is a licensed, bonded collection authority that has been retained to collect funds for the Court.

6.0 POLICY:

6.1    All monies due the court will be considered a fair and owing debt to the Court.

6.2    All customers owing the Court money, which has not been paid as directed by statute, code or court order, will be sent a statement of the past due amount 21 days after due date.

6.3    All customers failing to satisfy the debt within 30 days following the past due notice will be referred to the Court’s designated collection agent.

6.4    All debt, which has been sent to the Court’s designated collections agent will be subject to collection fees and interest as prescribed by RCW 62A.3-515, RCW 19.16.500, and RCW 3.02.045.

7.0 PROCEDURES:

7.1    The Court is responsible for notifying customers of past due amounts owed the Court. The Court shall send notice as outlined in Section 6.2 above.

7.2    When the Court has followed each step outlined in Section 6.0 to collect past due money, and has failed; a Court employee will order the Collection Agent Assignment Report on the Judicial Information System and refer the debt to the Court’s designated collection agent.

7.3    Debts will be written off as uncollectible when applicable statute dictates enforceability of the judgment has expired.