SR - AGR-6502 - DEBT COLLECTION SERVICES1. SUBJECT
Agreement with Collection Bureau of American for debt collection services.
2. SUMMARY
In order to keep up with current trends in collection options and technology, staff issued a
Request for Proposals (RFP) for debt collection services. Five responses were received and after
review, staff selected Collection Bureau of America due to their large collection staff, innovative
technologies, and additional payment options including online payments.
1 3. RECOMMENDED ACTION
Approve agreement with Collection Bureau of America and authorize the Mayor and City Clerk
to execute the agreement on behalf of the City.
14. FISCAL IMPACT I
Collection Bureau of America will take 25% of all monies they recover. In comparison, we
currently give Southwest Collection Agency, our current service provider, 26% of all money
collected after 30 days. The new company has ten times the staff and uses the latest technology
to track down severely delinquent offenders which should result in more money being collected
on behalf of the City.
5. STRATEGIC PLAN GO
2 a. Expend fiscal resources responsibly
16. GENERAL PLAN IMPLEMENTATION I
Not applicable.
1 7. DISCUSSION and BACKGROUND
The Finance Department decided to look for a new collection agency that can provide a web
based portal and offer advanced technological services as well as an increased rate of recovery.
A Request for Proposals was sent out and five companies responded. After studying all the
proposals, Finance selected Collection Bureau of America as the company most suited to meet
the current and future needs of the City.
Collection Bureau of America expects a recovery rate of 25 -30 %. Just as important, they provide
a client web access portal which will allow the city to quickly add, delete, edit, and review all
referred accounts, and give easy access to a variety of reporting tools. Their website will also
make it easy for customers to view their accounts on -line and if preferred, make payments
directly on the website. Southwest Collection Agency is unable to supply this type of service.
Collection Bureau of America also uses the latest technology to locate customers who may have
moved to a new address and become difficult to contact.
This new system should provide improved service to both customers and city employees alike
and increase the revenue collected.
Collection Bureau of America promises positive, respectful customer interactions and we are
confident they will serve the City well.
18. ATTACHMENTS
Consultant Services Agreement with Collection Bureau of America