Frustrated with the increasing number of delinquencies, the Scott Twp. Sewer Authority board is considering hiring a collection agency to help recoup the more than $85,000 it is owed.
And it will not stop there, either, said authority members, who pointed to the municipal liens placed on the 12 township properties delinquent by more than $1,000.
The authority's solicitor, David Tomaine, is reviewing the contract proposed by NCSPlus Inc. of New York City and will provide a recommendation at the Jan. 8 meeting as to whether they should hire the agency, board Chairman Mike Grant said.
If hired, the agency would work in "tandem" with the authority's lien process to help recover the $86,542 the authority has yet to receive since the monthly billing started in December 2011. Sixty-three accounts now owe more than $500, and another 13 accounts are delinquent on their monthly payments by at least 90 days.
"Too much money is involved, and the number of delinquencies is increasing every month," Mr. Grant said. "I think we are going to have to go with an outside agency, and if you are not paying, we will have to report it on your credit report."
According to a document provided by township supervisor and authority member Michael Giannetta, NCSPlus follows a three-step collection process - all of which is at the authority's discretion.
The process includes sending five letters, ranging from a balance verification to an attorney demand, and making at least three phone calls to nonpayers over a 90-day period. Ultimately, the agency will either send a thank you letter if payment is received or report nonpayers to the three major credit bureaus: Equifax, TransUnion and Experian.
If reported, the credit "blemish" will remain on the nonpayer's credit file for seven years, the contract states.
"It is an incentive, obviously, because now when you go to apply for a car loan, or bank loan, or really any type of financing at all, they look at your credit score," Mr. Tomaine said. "You may be denied the loan, or you may have to pay higher interest rates to get a loan."
The cost for the work varies depending on how many "claims" the authority decides to purchase, but officials said 500 claims at the price of $7,000 is the likely option - should they choose that route.
One claim is required for every property owner, so it could require as many as 10 claims to go after a property, officials said.
"I think it is something we need to consider because we cannot get to the point where we have to increase the rates again," said Mr. Giannetta, referring to the $88 monthly rates that jumped from $78.4 in November. "It is not fair to the people who are paying."
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