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Utah House rejects stricter limits on municipal use of collection agencies; bill filed after narrow vote
Summary
A bill to let smaller Utah municipalities contract with private collection agencies to pursue unpaid municipal debts failed on the House floor after heated debate over timing, privacy and credit-report impacts; the House voted 37–36 against passage and the measure will be filed.
Representative Mark Walker brought House Bill 361 to the floor to allow municipalities to employ private collection agencies and provide those agencies names and addresses of debtors to recover small municipal debts. "A municipality may employ a collection agency for the purpose of collecting a debt," Walker said while reading the short bill to colleagues, adding the change is intended "to help facilitate some of the smaller municipalities."
Debate focused on guardrails: Representative Hogue offered an amendment to permit referral to collectors only when a debt had been delinquent more than 180 days; he…
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