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Detroit council requests detailed accounting of collections contract after DAH reports $13.7 million recovered
Summary
The council asked the Department of Appeals and Hearings for a written breakdown of collections, vendor fees and who benefited from settlements after DAH reported roughly $13.7 million collected under its collections vendor; members raised concerns about garnishments affecting seniors and about settlements negotiated by the law department.
The Committee of the Whole asked the Department of Appeals and Hearings (DAH) to provide a written accounting of collections activity since 2021 after Director Julianne Pastrill told the committee the city's collections vendor had recovered about $13,700,000 since placements began in March 2022.
Pastrill described the Linebarger, Goggin, Blair and Sampson LLP contract as a contingency-fee arrangement and explained the vendor—ee schedule the department uses: 10% if a file is placed within six months of…
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