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ALAN LEON | ROCKFORD REGISTER STAR
John Owens (left) waits in line to pay traffic fines totaling $160 dollars Friday on the first floor of the Winnebago County Courthouse in downtown Rockford.
 
Published: September 18, 2006

Local News: Winnebago County
County's ability to collect on unpaid fines in question



Click here for more information about Isaac Guerrero

ROCKFORD — Do the crime, pay the fine. That�s how it's supposed to work, right?

Not in Winnebago County, which has slapped offenders with more than $14 million in fines since 1990 but has collected only one-third of those charges.

The county employs eight people in the state's attorney�s office who work with debtors to make good on their unpaid fines. Some of the debtors are scofflaws who must be tracked down and nagged to pay up. Others are jobless or living on fixed incomes and need a payment plan to wipe out their fine.

 


 
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It's squeezing blood out of the proverbial turnip, Winnebago County State's Attorney Paul Logli said. But believe me, without this unit, we wouldn't be collecting anywhere near the fines we're getting now.

The collection rates look dismal from year to year, but progress is made over time, Logli said. The county's collection rate, which was 33 percent in 2005, stood at 24 percent in 2004.

But thats not efficient enough for some. Several County Board members don't think Logli's Financial Compliance Unit is doing enough.

The unit would cost taxpayers $483,278, under the proposed 2007 budget that board members will approve in two weeks. Officials estimate the unit will generate only $190,000 in 2007 from fees that Rockford and other towns pay for the county's collection service.

Yes, they're collecting money, and it's sort of working, but what about the guy who never pays his fine, said board member Chris Johnson, R-14. I don't think the results are as good as they could be.

Needs to prove itself
Johnson said he and other board members discussed scrapping the county's collection agency until Logli told them that the county will hire two private collection firms this year to go after the most delinquent debtors. Johnson now expects board members will approve the budget and give the county collection agency more time to prove itself.

A state law approved this year allows private debt collectors to assign service fees on top of court-imposed fines that local governments collect. Under the new rule, a DUI offender faced with a $1,000 fine could pay up to $1,500, Logli said.

But if someone owing a $1,000 fine can't pay, what incentive does he or she have to fork over $1,500?

At some point you have to ask yourself: Are we not just pushing more and more people to the financial brink? said Patrick Hayes, legal director for the city of Rockford. It's just silliness. They're not paying what's on the books, and they're not going to pay if you multiply that fine by one, two or three.

Rockford signed a debt-collection contract with the county in 2000. Since then, the county has collected 30 percent of the city's $40.4 million in outstanding fines. The collection rate stood at 25 percent two years ago.

Rockford isn't threatening to pull out of the county's Financial Compliance Unit. Other communities aren't either, although nobody's happy with the rate of collection, Hayes said.

Easy to avoid fines
Part of the problem is that it's easy to be a scofflaw. The second floor of the courthouse houses traffic and DUI court, where many fines are imposed. If offenders can't pay, the judge orders them to leave the courtroom and visit the Financial Compliance Unit office across the hall. A lot of people bolt from the courtroom and make a quick escape.

We don't have any staff assigned to make sure that the guy physically walks across the hall to our office, said Bill Henbest, who heads up the county's collection unit. The judge certainly doesn't want the bailiff leaving the courtroom unsecured. A lot of people just slip out to the parking lot.

County Board member George Anne Duckett, D-12, believes the county should dissolve the Financial Compliance Unit and hire a private collector.

All the hospitals do it, Duckett said. All the utility companies do it. Everybody knows that when you go to the hospital or the clinic, if you don't pay your bill they'll be calling you and calling you and they won't stop. I think we're too easy on people.

Winnebago County tacks a 10 percent fee on every fine it collects for Rockford, Loves Park, Machesney Park and other municipal and state government agencies it serves. Hiring a private agency wouldn't't come cheaply, Henbest said.

The Internal Revenue Service, for instance, recently turned over data on 12,500 taxpayers — each of whom owes $25,000 or less in back taxes — to three private collection agencies that will collect up to 24 cents on the dollar.

I think a 10 percent contingent fee is a pretty sweet deal, said Jim Cox of United Credit Service, a private collection agency that serves Wisconsin and Illinois.

Your collection rate really depends on the clientele you're collecting from, Cox said. It sounds like the county is dealing with a large group of people that may be unemployed or making minimum wage or they're sitting in jail. There's really nothing you can do to motivate those people. The fact is, you don't collect 100 percent of any debt.

Fees vs. service
Account Recovery Services of Rockford collects unpaid medical accounts, bad checks and unpaid retail bills for its clients. A 30-percent collection fee is normal in most instances, owner Karl Brolund said. Fees can vary, howeverer, depending on the volume of accounts a client offers.

A private collector might charge 10 percent, but you have to ask what level of service they're going to provide, Brolund said. Maybe they'll only send out two or three letters and that's it. You might find it better to hire a company for a higher fee. It might be better to recover 50 percent or 60 percent of your accounts with a 20 percent fee versus recovering 30 percent of your accounts with a 10 percent fee.

Loves Park officials received the county's latest collection data last week. Officials aren't�t sure whether the county�s system is the best system for Loves Park, said Gino Galluzzo, an attorney with Nicolosi & Associates, which represents Loves Park.

All of the communities know there's problems with the county's collection rates, and there's probably some better way to do things. The question is, could Loves Park do it cheaper and better than the county? We don't yet know that answer.

Staff writer Isaac Guerrero can be reached at 815-987-1371 or iguerrero@rrstar.com.


 

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