The State of Iowa is looking for a way to balance their budget by collecting on hundreds of millions of dollars owed to the state for unpaid taxes, court charges, and anything else they can think of.
The legislation says that when a debt becomes 120 days delinquent it will be sent to an outside collection agency that can add a penalty of up to 25 percent of the debt to cover it’s collection activities.
State debts owed in Iowa include:
- Parking Tickets – $521 million
- Criminal Case Debt – $379 million
- Traffic Fines – $122 million
I would imagine that with a 25% collection bonus available to collection companies that chase this debt will create a line of collectors begging to win these contracts.