Pay Crime Victims First, Not Private Debt Collectors
by Andrew Ritland
The Iowa Legislature must stop private debt collectors from taking restitution away from crime victims. Approximately one-third of Iowa counties do not have a county attorney program to collect delinquent court debt. In these counties, a Texas-based firm, Linebarger, Goggan, Blair & Sampson, collects past due victim restitution as well as unpaid fines and fees. This private debt collector charges a 25 percent collection fee that is added to the amount an offender owes. Under current law, 25 percent of every payment goes to this private debt collector before the remaining funds are sent to victims. Since this fee is deducted first, crime victims are left bearing the cost of private debt collection.
At best, the current system slows down restitution to victims by diverting a portion of an offender’s payment to a private debt collector. In other words, for every $100 an offender pays towards restitution, a victim will only receive $75 after fees. At worst, the system takes money away from victims outright. It is all too common for offenders to never pay the full amount of restitution. As a result, victims in over thirty counties, including many in southeast Iowa, receive 25 percent less restitution than they otherwise would. For example, if the court orders an offender to pay $2,000 in victim restitution but the offender only pays $1,000, the victim will receive $750 and the remaining $250 will be paid to the private debt collector. In this scenario, victims, not offenders, are paying for the cost of private collections. Even more egregious, a private debt collector can deduct a collection fee from victim restitution payments even if they have done nothing to collect on a case. If an offender voluntarily makes a payment, the private debt collector will receive 25 percent of the funds even though they have never made any collection efforts.
Under a county attorney collection plan, victim restitution is always paid first and in full. That is why last year the Mahaska County Attorney’s Office started a county attorney collection program. This program not only helps victims receive more restitution faster, but it reduces the financial burden placed on offenders. Unlike private debt collectors, a county attorney collection program does not charge an offender a collection fee. By avoiding these fees, offenders can save hundreds, and at times thousands, of dollars. However, many counties do not have the resources for a county attorney collection program. Wapello, Appanoose, Keokuk, Davis, and Monroe are just a few of the surrounding counties in which a private debt collector is deducting collection fees from victim restitution payments.
There is an urgent need to amend the law so that crime victims are paid first rather than private debt collectors. Support crime victims everywhere. Contact your local representative and tell them they need to take action on this important issue.
