Collection agency Transworld Systems will take over collection services for the city of Logansport, Ind., located in northern Indiana, where city officials are hoping to recoup part of several hundred thousand dollars in liens.
The city, which has a population of approximately 18,000, issued liens totaling more than $382,000 last year, a figure that soared from $60,000 in 2012 after officials added property demolition fees to the usual property cleanups and mowing fees. So far this year, the city has issued liens totaling $13,500, according to Logansport Clerk-Treasurer Carol Sue Hayworth.
Transworld Systems will charge $10 per claim per month and the agreement can be terminated at any time, according to city officials. Logansport City Council members voted unanimously this week to hire the firm but expect to revisit the hiring in six months to gauge the initiatives progress.
Council members said the problem with collecting liens is that there appeared to be little motivation for uncooperative debtors to pay their fees under the existing system. The threat of a negative impact on their credit ideally will encourage more debtors to pay, council members agreed.
Based in St. Louis, Transworld Systems began operations in 1970. Clients include banks, hospitals, universities, small businesses, retailers, manufacturers and municipalities. The firm has more than 100 locations nationwide.
