(A) The city may contract to retain a collection agency licensed pursuant to the Collection Agency Act, within or without this state, for the purpose of collecting public debts owed by any person to the city.
(B) No debt owed pursuant to division (A) of this section may be assigned to a collection agency unless:
(1) There has been an attempt to advise the debtor by first-class mail, postage prepaid, at the last known address of the debtor:
(a) Of the existence of the debt; and
(b) That the debt may be assigned to a collection agency for collection if the debt is not paid; and
(2) At least 30 days have elapsed from the time the notice was sent.
(C) A collection agency which is assigned a debt under this section shall have only those remedies and powers which would be available to it as an assignee of a private creditor.
(D) For purposes of this section, debt shall include all delinquent fees or payments except delinquent property taxes on real estate. In the case of debt arising as a result of an order or judgment of a court in a criminal or traffic matter, a collection fee may be added to the debt. The collection fee shall be $25 or 4.5% of the debt, whichever is greater. The collection fee shall be paid by the person who owes the debt directly to the person or agency providing the collection service.
(Ord. 854, passed 1-5-2021)
Statutory reference:
Related state law provisions, see Neb. RS 45-623