D.C. May Turn to Collection Agencies to Recoup Overdue Fines

Following the lead of many city governments around the country, Washington D.C. is considering hiring third-party debt collectors to collect on delinquent fines and tickets. According to the Washington Examiner, the effort is being spearheaded by D.C. Councilwoman Mary Cheh, who seems eager for debt collection agencies to get the authority to put liens on consumer property and garnish consumers’ income. The Delinquent Debt Recovery Act would also authorize the creation of a central collections department, rather than each agency having its own collection unit. Maryland officials are helping to structure the unit, and have hopes that nearby states could coordinate in targeting consumers who have a ticket or fine in one jurisdiction but live in another.

If enacted, the debt collection agencies with whom the District contracts would be able to tack on collection fees, thus making consumers pay more while not incurring any cost to the District.

Oops – Wells Fargo Did it Again

Wells Fargo has made the news lately – along with other lenders – for “robo-signing” and fast-tracking home foreclosures without validating that mortgages were in arrears. Now it seems that they’ve moved onto car loans. As King 5 in Seattle reports, Wells Fargo repossessed a car and sent it to the auction lot, even though the bank didn’t have title to the car. Indeed, the consumer had paid off the car loan and owned the title. Even more disturbing is that the consumer, Adlantus Newton, called law enforcement and showed them the title, but they did nothing to stop the repossession. Reporter and consumer advocate Jesse Jones contacted the Washington Department of Licensing and Wells Fargo, and was able to get the car returned to Newton. He warned, though, that similar cases have been reported in the Seattle area.

Here’s the report: