Debt collection fees approved

Published 11:30 am Wednesday, November 28, 2018

Members of the Kenbridge Town Council voted to approve an ordinance that would allow the town to collect setoff debt and an administrative fee from those who have not paid taxes to the town following a public hearing during the council’s Nov. 20 meeting.

None spoke during the public hearing.

The ordinance would authorize the town “to collect from the debtor of up to the maximum statutory amount allowed in addition to the amount of delinquent debt collected pursuant to its participation in any program created under the Setoff Debt Collection Act,” according to a public notice from the Town of Kenbridge of the public hearing.

Kenbridge Vice Mayor Kenneth Blackburn said that if a town resident owes the town funds, and the town is registered with this program, the town can collect state funds the resident may receive such as lottery winnings and tax returns. The Setoff Debt Collection Act is described under 58.1-4026 of the Code of Virginia.

“We get paid before they get paid,” Blackburn said about the ordinance, “and this allows us to participate and charge an administration fee.”

Blackburn said the fee could change depending on whether the state changes its fee.