City Contracts with AlaTax for Debt Collection

Residents of Brewton, Alabama, who think they’re above paying utility bills (“I mean, it’s like every month with the gas company these days…”) could be in for some attention from a collection agency.

Brewton’s City Council heard a presentation from a representative of AlaTax, a collection agency with specialties in government collections, yesterday.  Yolanda Thomas, the AlaTax representative, said there could be $20,000 or more in uncollected payments.

The Brewton Council agreed to the contract with AlaTax (also known as Revenue Discovery Systems, and acquired by Portfolio Recovery Associates in 2005); now, according to Steve Morris, Executive Vice President, AlaTax is waiting for the data from the city.  AlaTax had already performed a discovery and recovery study for the city.

AlaTax charges commission for the bills it collects, but Thomas said some cities have passed ordinances that allow them to charge that cost to the customers.