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Washington, D.C., considering new debt collection practices

Mar 25, 2011 Kyle Duncan

Lawmakers in Washington, D.C., are considering new measures that will help the city recover millions in owed money, WTTG-TV reports. On Tuesday, Ward 3 D.C. Council member Mary Cheh introduced a bill called the Delinquent Debt Recovery Act that aims to streamline debt collection practices in the nation's capital.
 The goal of the bill is to establish a centralized office within the Office of the City Administrator that will be responsible for overseeing and executing all debt collection. Additionally, if enacted, the bill will create a central database that should provide greater flexibility to other agencies. The Washington Examiner reports that the city will outsource debt collection to third parties, who will collection back payments and pay a portion to the city for issues such as payments owed to the Department of Motor Vehicles. According to WTTG, the Department of Consumer and Regulatory Affairs recovered just 25 percent of the fines levied in 2009. Cheh told the source that a new debt collection policy is imperative to alleviate the near $300 million debt facing the city.