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Colorado County approves contract allowing collector to keep 30% of delinquent receivables
Summary
The commissioners approved a five‑year contract with MVBA, LLC dba Accounts Receivable Collections Group to collect delinquent county receivables at a 30% contingency fee; contract includes provisions for returned time‑barred accounts, indemnity and termination terms.
The Colorado County Commissioners Court approved a contract Feb. 23 with MVBA, LLC dba Accounts Receivable Collections Group to collect delinquent county receivables. Under the contract, MVBA will retain 30% of funds it collects, a percentage the court described in the meeting as a standard contingency fee.
County staff explained key contract provisions: MVBA will receive files monthly and may accept partial payments or set up payment plans; the company may use attorneys at its expense with county approval to pursue litigation; time‑barred accounts (four‑year statute under Texas Civil Practice & Remedies Code §16.004(a)(3)) will be returned to the county; uncollected accounts may be returned after one year. The contract’s initial term is five years and may be terminated by either party with 60 days’ written notice.
Judge Ty Prause moved to approve the contract; Commissioner Darrell Gertson seconded. The minutes record the vote as 5 ayes, 0 nays.
What the contract means: The county will use an outside contingency collector for a portion of delinquent receivables (examples cited include delinquent utility bills and EMS patient fees). The 30% contingency applies to collections remitted to the county; the contract contains protections for disputed debts and requires MVBA to remit funds weekly with account detail to the county.
