The Volokh Conspiracy - Contracting Out Tax Bill Collection + Law Firm Paying for Line-Sitters:

An interesting story from the Louisville Courier Journal:

Since Feb. 3, a local law firm has paid ... a cadre of ... students and stay-at-home moms to wait outside the [Jefferson County's sheriff's] office, ... 24 hours a day, seven days a week.

The goal is to be first in line April 6 -- the first day that the firm's client, an unnamed investment company, can make an offer to buy Jefferson County's delinquent property tax roll.

As part of a system that may soon be ended by the Kentucky General Assembly, the company that's first in line pays the county what it's owed -- in recent years, an average of about $14 million on about 15,000 delinquent bills -- and then can make money by charging the derelict owners 12 percent interest a year until they pay their debts.

If the owners still don't pay, after one year, the company could foreclose on their properties.

For its part, the law firm -- Albrektson & Wakild, of Crestwood -- can reap collection fees of up to 100 percent of the amount owed on small bills, and smaller percentages on larger bills....

Not my field, but seemed like an interesting story, so I thought I'd pass it along. Thanks to reader William Ridlon for the pointer.

	[Eugene Volokh, March 2, 2009 at 4:58pm] Trackbacks Contracting Out Tax Bill Collection + Law Firm Paying for Line-Sitters: An interesting story from the Louisville Courier Journal: Since Feb. 3, a local law firm has paid ... a cadre of ... students and stay-at-home moms to wait outside the [Jefferson County's sheriff's] office, ... 24 hours a day, seven days a week. The goal is to be first in line April 6 -- the first day that the firm's client, an unnamed investment company, can make an offer to buy Jefferson County's delinquent property tax roll. As part of a system that may soon be ended by the Kentucky General Assembly, the company that's first in line pays the county what it's owed -- in recent years, an average of about $14 million on about 15,000 delinquent bills -- and then can make money by charging the derelict owners 12 percent interest a year until they pay their debts. If the owners still don't pay, after one year, the company could foreclose on their properties. For its part, the law firm -- Albrektson & Wakild, of Crestwood -- can reap collection fees of up to 100 percent of the amount owed on small bills, and smaller percentages on larger bills.... Not my field, but seemed like an interesting story, so I thought I'd pass it along. Thanks to reader William Ridlon for the pointer.