Could Simmesport hire a collection agency for unpaid town fines?

Plain-English summary

Simmesport asked whether it could use a collection agency for delinquent or unpaid fines owed to the town. The Attorney General said Louisiana law allowed a municipality to use a licensed and bonded collection agency by written contract for public debts, but excluded debts arising from outstanding bench warrants, parking fines, and traffic tickets.

Before assigning an eligible debt, the town had to attempt written notice stating the debt's existence, amount, reason, and a request for payment. The AG added that the statute did not set the agency's fee arrangement and that it knew of no prohibition on paying a percentage of collected money.

Currency note

This opinion was issued in 2002. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Could Simmesport send every unpaid fine to a collection agency?
No. The opinion quoted exclusions for debts from outstanding bench warrants, parking fines, and traffic tickets.

What notice did the town have to attempt before assigning a debt?
Written notice to the debtor of the debt, its amount, its reason, and a request for payment.

Could the town pay the agency a percentage of collections?
The AG said the statute did not specify a fee arrangement and that it was unaware of a prohibition on a percentage fee.

What powers would the collection agency have?
The statute quoted in the opinion limited an assignee to remedies and powers available to an assignee of a private creditor.

Background and statutory framework

The opinion applied La. R.S. 9:3576.6 to Simmesport's proposed contract. It distinguished eligible public debts from the statute's express exclusions and described the required written contract, licensed and bonded agency, and pre-assignment notice attempt.

Citations and references

• La. R.S. 9:3576.6

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/02-0232

Original opinion text

One American Place
DEPARTMENT OF JUSTICE
301 Main Street, Suite 600
ov,, D,v,S~ON
P.O. Box 94005
BATON ROUGE
TEL.: (225) 342-7013
FAX: (225) 342-2090
RICHARD P. IEYOUB
70804-9005
ATTORNEY GENERAL

JUL 0 8 2002
Opinion Number 02-0232

71 Municipalities
90-A-3 General Contracts - Local
Honorable James T. Fontenot
La. R.S. 9:3576.6
Mayor, Town of Simmesport
Post Office Box 145
The Town of Simmesport may contract with a collection
agency to collect debts owed to it pursuant to La. R.S.
Simmesport, LA 71369
9:3576.6.

Dear Mayor Fontenot:

We received your request for an opinion regarding the authority of the Town of Simmesport to contract with a collection agency for the collection of delinquent and/or unpaid fines due to the Town.

La. R.S. 9:3576. 6 provides as follows:

State and federal agencies, departments, political subdivisions of the state, incorporated municipalities, and parishes, may, by written contract, utilize collection agencies licensed and bonded under this Part for the purpose of collecting public debts owed by any person, except those debts arising from outstanding bench warrants, parking fines, and traffic tickets.
Bo No debt owed to a govemment instrumentality listed in this Section may be assigned to a collection agency pursuant to this Section unless there has been an attempt to advise the debtor, in writing, of the existence of the debt, the amount of the debt, the reason for the debt, and a request for payment.
Co Collection agencies assigned debts pursuant to this Section shall have only those remedies and powers which would be available to them as assignees of private creditors.

Thus, according to this statute, the Town of Simmesport may, by written contract, utilize a collection agency that is licensed and bonded pursuant to the laws of the state for the purpose of collecting its debts except those debts arising from outstanding bench warrants, parking fines, and traffic tickets. The Town of Simmesport must first attempt to advise the specific debtor, in writing, of the nature of the debt and request payment.

The statute does not specify the fee arrangement for such a contract and we are unaware of any prohibition of using a percentage of the monies collected as a fee.

Page 2

Opinion Number 02-0232
Honorable James T. Fontenot
Mayor, Town of Simmesport
Page -2-

We trust that this adequately responds to your request. If you have any questions or
comments, please do not hesitate to contact our office.

With kindest regards,

Yours very truly,

RICHARD P. IEYOUB
Attorney General

BY:
TINA VICARI GRANT
Assistant Attorney General

RPI/TVG/dam