The reason that government agencies are doing this is pretty simple: money. Many states and cities are finding themselves broke and desperately in need of funds, which they’re trying to secure, a little at a time, by going after even the smallest of unpaid debts.
Furthermore, there’s really no good reason for government agencies NOT to go after these debts. It has been discovered that the government can outsource collections, which means little time or effort on their part, and they can allow outsourced agencies to tack on their own collection fees, allowing debts to be collected at no cost to the government agencies. #DebtCollectionPractices
Debt collection agencies working for the government also benefit since they’re not subjected to the same tight laws as other agencies. They can add on higher fees than non-government contracted agencies and make (and carry out) serious threats, such as suspended drivers’ licenses and garnished wages. Of course, penalties and fees do vary from state to state, but in general, government-contracted debt collectors have more leeway in their collection practices.
So, if you’ve got unpaid debts lurking somewhere in your past, your best bet is to get them taken care of now. If you don’t, don’t be surprised when a government-contracted collection agency calls your phone, demanding what you owe and then some!
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