Endorsed Programs - Debt Collection
The Alabama League of Municipalities is constantly trying to bring valued services to our members. These services include an insurance program, an Internet auction site and a heart defibrillator program, to name a few. The latest League-endorsed program is a partnership between the League and RDS offering debt collection services to Alabama municipalities. This service provides local governments a politically sensitive and experienced approach to collecting unpaid, known debt.
RDS has a long standing relationship with local governments in Alabama. With more than 275 local jurisdictions currently using the services of RDS, the League Staff and Board of Directors feel strongly that this service will provide needed revenue to our members.
There are many types of debt that can be collected under this program. Some of the business tax debt collection opportunities include:
- Sales and use tax
- Occupational (business) license taxes and fees
- Other local taxes such as alcohol, gas, lodging, rental/lease, and tobacco
It is simple to begin using the service. Once the contract between RDS and the city is signed, the city provides an electronic file of all aged receivables account data to RDS. The service is offered on a specially-negotiated contingency fee basis, with fees ranging from 23.4% to 35.1%, depending on the amount and age of the debt.
RDS is a wholly owned subsidiary of Portfolio Recovery Associates (PRA) that specializes in providing governments and public entities with a full range of revenue enhancement services, including Aged-Receivables Management (debt collection), Revenue Administration, Revenue Discovery and Recovery and Compliance Auditing. RDS is a highly qualified debt collection firm with an outstanding past performance record and almost 30 years of experience in working with public sector entities.
RDS employs a full-time professional collections staff to ensure the successful collection of delinquent taxes, fees and other charges, in accordance with the Fair Debt Collection Practices Act (FDCPA) and the Taxpayer Bill of Rights (TBOR).
This section of our website will provide an overview of the service, a contract for service, the four-step collection process, a description of the electronic data file, and a template spreadsheet to help with data input.
If you have any questions or would like to speak to someone about the service, please contact either Yolanda Watkins at 334.272.9995 or Pete Yonce at 205.423.4110.
If your city is experiencing difficulty collecting delinquent revenues, we hope you will consider taking advantage of the Alabama League of Municipalities’ new debt collection service.
How to Get Started
RDS Debt Collection Introduction
Thank you for your interest in the program. Completing this document will start the process for you to initiate a formal private collection effort to collect outstanding known debt currently owed to your local government.
For almost 30 years RDS has helped local governments by leveraging a variety of revenue enhancement solutions including the implementation of an effective aged-receivables management program. At the bottom of this form, you will find the necessary information we will need to get you set-up and on your way to collecting that unpaid debt!
Make sure that you review the Debt Collection Agreement. We have attempted to design the documents to be government friendly, however, if you or your legal staff has any questions that require clarification or further explanation, please give us a call.
Once you have approved and signed (two) copies of the Debt Collection Agreement, please complete the information below and forward all documents to Connie Taylor by email or by fax at 205.423.4097. Once we receive this information, we will execute the Agreement and will return a copy to you for your records. Again, thank you for your interest in RDS. We look forward to serving you.
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