Posted: Monday, 12 May 2008 3:51PM
SAN JOSE STEPPING UP DEBT COLLECTION EFFORTS
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San Jose - The city's budget deficit has prompted city officials to increase their efforts in collecting old debts.
The city council will likely approve the hiring of two collection agencies tomorrow. This action is expected to help the city recover owed money, and to identify land it owns.
In an interview this morning with 1590 KLIV, Mayor Chuck Reed said the city has tried hard to collect the money. He says there are several reason why some of the people have not repaid, including those in prison and those who have left the state.
If the collection agencies are hired, they will be paid a 15% commission on each piece of bad debt they can collect.
Even though San Jose's finance department managed to collect $7 million in delinquent debt last quarter, about 8,000 people and companies owe the city about $21 million. |
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