Some Montanans Irritated to be Dunned by Texas Collection Agency

HELENA, MT - Great Falls landlord Charles Henry says he was surprised when he got a collection notice for back state income taxes recently — and even more surprised when it wasn't even from the state.

The state Revenue Department had turned Henry's account over to a Texas collection agency, which is now trying to collect on 25,000 past-due accounts of $200 or less.

"They tried to get me to pay the money to them," he says of the caller for GC Services. "I don't even know them. ... I said it's pretty bad when you don't even get a notice from the state first."

Henry also says he believes the bill is in error, but when he called the collection company about it, the agent treated him rudely and wouldn't listen to his side.

GC Services, headquartered in Houston, won a contract last October to collect the back taxes for the state of Montana, and gets to keep 18.9 percent of what it collects. It's the first time the Montana Revenue Department has hired an outside agency to collect taxes.

The company began trying to collect on $29 million in past-due accounts for individual income taxes five weeks ago.

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