A public utility in North Carolina is looking for a collection agency to help it recover as much as $2 million in unpaid bills every year, according to a published report.
The Cape Fear Public Utility Authority has issued a request for proposal looking for a three-year contract that could be extended to five years.
Approximately 70,000 residential, commercial, and industrial customers of the utility are generating the $2 million in annual unpaid bills, according to the report. The winning agency would be responsible for making phone calls and sending letters to customers with past-due bills and reporting those debts to the three credit bureaus. Customers with unpaid debts that exceed $3,000 could face legal action on behalf of the utility, according to the report.
Collection agencies that submit proposals would have to include the expected commission they would want to receive for working the accounts.
Proposals must be submitted by May 1 at 2pm ET, according to the RFP.
The winning agency would receive accounts that are at least 120 days past due and have a balance of at least $50. Some accounts will be expected to be referred to a state setoff program that allows for lottery winnings and state tax refunds to be garnished to pay debts owed to the utility.
In order to be selected, the collection agency “must have provided similar services to at least three organizations in North Carolina in the past three years,” according to the RFP.
