If the state is able to regain some of its losses from debtors, everyone will benefit...
Bohemia, NY (PRWEB) May 01, 2013
On May 1, 2013, John Monderine, CEO of debt collection agency Rapid Recovery Solution responds to a new initiative in Louisiana to establish a governmental department for debt collecting to try to recoup some of the state’s losses.
According to an article in [The Advocate, the Louisiana House of Representatives has put forth a proposal to address the state’s debt collection. House Bill 629 seeks to establish the Office of Debt Recovery within the Department of Revenue in order to receive payments more than 2 months past their deadline. Casino winnings, tax refunds and bank accounts from debtors are potentially liable to the Revenue Department. In addition, the bill sponsor, Rep. Chris Broadwater stated debtors would be charged a collection fee along with their debt.
In an effort to explain why this office is a necessity within the Department of Revenue, John Kennedy, the state treasurer of Louisiana reaffirmed to lawmakers that the Department of Transportation and Development was not meant to dually function as collection agency. “DOTD’s job is not to collect money. They’re pretty good at building roads. But for years, we’ve been telling them, ‘Y’all collect your own accounts.’”
Kennedy estimates there are over $690 million of payments owed to the state government that are at least six months overdue. The debts vary from “delinquent college tuition installments to unpaid environmental monitoring fees.” The article reports that if the state stepped up their debt collection efforts by just 10 percent a year, they could potentially generate over $100 million annually.
A financial report by the Legislative Fiscal Office suggests, “the state [create] 23 new positions and spend $1.7 million a year on salaries and benefits to focus on debt collection. For the upcoming fiscal year that starts July 1, the office estimated total administrative costs of $4.4 million for the new unit.”
John Monderine, CEO of debt collection agency Rapid Recovery Solution, says the initiative could go a long way in helping the state recoup some losses if the program is well-managed. “If the state is able to regain some of its losses from debtors, everyone will benefit. Privatizing public debt is a good option for some localities and not for others. If the state is able to keep the debts within the public sector and recoup them at less of a loss than they would have incurred by outsourcing the collection services, then this program could serve as a great working model for other states to scrutinize.”
Founded in 2006, Rapid Recovery Solution, Inc. is headquartered at the highest point of beautiful Long Island. Rapid Recovery Collection Agency is committed to recovering your funds. We believe that every debtor has the ability to pay if motivated correctly. We do not alienate the debtors; we attempt to align with them and offer a number of ways to resolve not only your debt but also all their debts.