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Treasurer seeks new collection-agency contract; commissioners approve switch to American Financial Credit Services
Summary
Treasurer Dana told commissioners the county will replace Eagle Accounts with American Financial Credit Services; the new contract charges 27% (versus 30%) and allows either party to terminate with 30 days' notice within a one-year term.
DeKalb County’s treasurer on Aug. 18 asked the commissioners to approve switching the county’s collection-agency contract from Eagle Accounts to American Financial Credit Services.
Dana said the county could not locate a current contract with the existing firm and that American Financial offered a slightly lower charge to debtors. "So currently with Eagle, it's a 30%. ... This is actually gonna be saving the debtor 3%." Dana asked the board to approve the new contract after county legal reviewed it.
County counsel reviewed the contract language during the meeting and reported that the contract has a one-year term with a clause allowing either party to terminate on 30 days’ prior written notice. Commissioners approved the contract; the board motion carried and signatures were authorized to implement the change.
Why it matters: The contract establishes the terms under which a private firm will pursue unpaid county debts; the new contract reduces the collection charge to debtors from 30% to 27% and includes termination flexibility.
Next steps: The auditor’s office will execute the new contract and the treasurer will arrange for the transition of active accounts as specified in the agreement.
