Title
Collections - Parking & Municipal Violation Tickets - Approval
History
The Village issues parking and municipal violation tickets on a daily basis. Upon issuance of the ticket, the violator has ten (10) days to pay the ticket or request a hearing. If a hearing is requested, a hearing date is provided. If the violator is found liable, they have 30 days to pay the fine. For parking tickets, if the fine remains unpaid after 30 days, the fine amount is increased to $250 and a final determination letter is sent to the violator. If the fine remains unpaid after 60 days, a debt collection letter is sent to the violator stating that the Village can file suit in the Circuit Court or send the amount due to a collection agency if not paid within 30 days. The process is the same for municipal violation tickets, although the amounts may vary.
Since expiration of our collections contract with our existing collections company, unpaid tickets were not sent to a collection agency; instead, the police department is conducting the collections process. Due to the number of outstanding parking and municipal violation tickets and the fact that collections is not a core function of the police department, staff recommends the outsourcing of collections to Municipal Collections of America, Inc. (MCA).
MCA is a newly formed collection agency that is in the process of acquiring Receivables Management, Inc. (RMI). RMI has worked with the Village of Orland Park since 1996, collecting unpaid parking citations as an exclusive subcontractor of Municipal Collection Services, Inc. MCA has 25 professional employees who have been entrusted to handle the collection needs of over 70 Chicago area municipalities, including 37 of the 42 members of the South Suburban Mayors and Managers Association. When performing under the RMI contract with the Village, the collection recovery rate was approximately 48% since 1996. MCA would receive 35% of all amounts collected, which is 5% les...
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