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Workshop Item # 12 January 4, 2012 District’s Collection ProcessDiscussion Regarding the
District’s Collection Process 2 collectionsBoard requested staff to investigate ways to increase –off of delinquent accounts-annual write-Staff presented semi–September 7, 2011•Background
/ History
New Information District’s Collection Process 3 Transferred to Transworld Systems–Account is closed–Service is disconnected–Posted on front door–Automated telephone call–48 Hour Notice–with
next month’s bill15 Day Notice–Original bill–District’s Collection Process•
New Information (cont)District’s Collection Process 4 Mail notices–Make telephone calls–Identify debtor’s assets–Verify debtor’s credit history–Trained collection agents research public
records–Phase 2–Five written past due notices mailed; one sent every 10 days–Phase 1–Transworld Systems•
New Information (cont)District’s Collection Process 5 Account is returned to District if uncollected–Minimal collection efforts–Attorney telephones debtor; sends demand letters–Low balance
and poor credit–Attorney attempts to establish a payment plan–Attorney telephones debtor; sends demand letters–Medium balance and fair credit–Attorney files law suit if appropriate–Attorney
telephones debtor; sends demand letters–High balance and good credit–Account is graded-Phase 3 –•
Collection Timeline District’s Collection Process 6
New Information (cont)District’s Collection Process 7 Report an uncollected accounts to credit bureaus–Check collection status of delinquent accounts over $1,000–written noticesIn Phase
1, alternate between automated telephone calls and –Ensure prompt transfers from and to each collection phase–Enter required collection data upon creating a new account–homeownersRequire
a deposit if credit is unsatisfactory, including –Run credit verification on all customers and –Additional ways to increase collections•
Fiscal Impact District’s Collection Process 8 workshopThere is no direct fiscal impact associated with this •
Recommendation District’s Collection Process 9 Receive this report and provide direction•
10
Trend of Accounts More Than 90 Days Past Due District’s Collection Process