Officials in Mahanoy City, Pa. will direct delinquent garbage accounts to a new collection agency that will charge people an added 25% late fee on all overdue accounts but will collect no additional fees from the city.
Creditech Collection Solutions Inc., based in Pennsylvania, was retained by the Mahanoy City Borough Council at a recent meeting and borough officials adopted a resolution last week to add the 25% charge.
OPake said the contract is for one year beginning Monday, thus expiring on Aug. 16, 2016. [The resolution] will add a 25% penalty on each delinquent account and will become the Creditech fee that is charged the borough, OPake said. So, if there is $1,000 due on an account, we add 25%, or $250, making the bill $1,250.
Borough Solicitor Michael A. OPake said that will have 90 days before the expiration of a contract to cancel it if not happy with the work.Two months ago, borough Code Enforcement Officer William F. Killian III said the borough collected $24,602 in delinquencies in a recent two-month period. Police Chief John Kaczmarczyk added that 56 payment plans are in effect.