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ORDINANCE NO. 5 0 6 3
AN ORDINANCE 'OF THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, ADDING A NEW CHAPTER 3 . 30 ENTITLED '~USE OF
COLLECTION AGENCIES" TO THE AUBURN CITY CODE WS[ICH PROVIDES
COLLECTION AGENCY USE PROCEDURES AND A REASONABLE FEE TO BE
ADDED TO ANY OUTSTANDING DEBT FOR THE COLLECTION AGENCY FEE
INCURRED OR TO BE INCURRED.
WHEREAS, RCW 19.16.500 authorizes cities to retain, by
written contract, licensed collection agencies for the purpose
of collecting public debts, including any restitution that is
being collected on behalf of a crime victim; and
WHEREAS, from time to time there are public d[ebts owed to
the City which must be collected; and
WHEREAS, the City Council has determined that it is in
the best interest of the City to retain a collection agency to
collect debts owed to the City; and
WHEREAS, RCW 19.16.500 was amended in 1997 authorizing
cities to add reasonable fees, payable by the debtor, to the
outstanding debt for the collection agency fee incurred or to
be incurred; and
WHEREAS, the City Council has determined that it is in
the best interest of the City to add a reasonable fee, payable
by the debtor, to the outstanding debt for the collection
agency fee incurred or to be incurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Ordinance No. 5063
April 29, 1998
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Section 1. pURPOSE: The purpose of this Ordinance is as
follows:
To create a new Chapter 3.30 of Auburn City Code entitled
"Use of Collection Agencies" for the purpose of establishing
procedures for using collection agencies and of establishing a
reasonable fee, payable by the debtor, to be added to the
outstanding debt for the collection agency fee incurred or to
be incurred which chapter is marked as Exhibit "A" attached
hereto and incorporated herein by this reference.
Section 2. Constitutionality or Invalidit;y: If any
section, subsection, clause, phrase, or sentence, of this
Ordinance, is for any reason held to be invalid or
unconstitutional, such invalidity or unconstitutionality of
the remaining portions of this ordinance, as it is being
hereby expressly declared that this ordinance and each
section, subsection, clause, phrase, or sentence, ihereof would
have been prepared, proposed, adopted, and approved and
ratified irrespective of the fact that any one or more
section, subsection, clause, phrase, or sentence, be declared
invalid or unconstitutional.
Section 3. The Mayor is hereby authorized to implement
such administrative procedures as may be necessary to carry
out the directions of this legislation.
Ordinance No. 5063
April 29, 1998
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Section 4. This Ordinance shall take effect and be in
force five (5) days from and after its passage, approval, and
publication, as provided by law.
ATTEST:
City Clerk
16 APPROVED AS TO FORM:
18
19 l/ Michael J] UReynolds,
City Attorney
INTRODUCED:
PASSED:
APPROVED:
May 4, 1998
May 4, 1998
May 4, 1998
CHARLES A. BOOTH
MAYOR
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PUBLISHED:
Ordinance No. 5063
April 29, 1998
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ORDINANCE NO. 5063
EXHIBIT ~A"
USE OF COLLECTION AGENCIES
Sections:
3.30.010
3.30.020
Definitions
Collection agency use procedure
3.30.010 Definitions.
A. "Person" includes individual, firm, partnership, trust,
joint venture, association, or corporation.
B. "Collection agency" means and includes:
(1) Any person directly or indirectly engaged in
soliciting claims for collection, or collecting or attempting
to collect claims owed or due or asserted to be owed or due
another person;
(2) Any person who directly or indirectly furnishes or
attempts to furnish, sells, or offers to sell forms
represented to be a collection system or scheme intended or
calculated to be used to collect claims even though the forms
direct the debtor to make payment to the creditor and even
though the forms may be or are actually used by the creditor
himself in his own name;
(3) Any person who in attempting to collect or in
collecting his own claim uses a fictitious name or any name
other than his own which would indicate to the debtor that a
third person is collecting or attempting to collect such
claim.
C. "Collection agency" does not mean and does not; inclu2de:
(1) Any individual engaged in soliciting claims for
collection, or collecting or attempting to collect claims on
behalf of a licensee under Chapter 19.16 RCW, if said
individual is an employee of the licensee;
Ordinance No. 5063
Exhibit "A"
April 29, 1998
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(2) Any individual collecting or attempting to collect
claims for not more than one employer, if all the collection
efforts are carried on in the name of the employer and if the
individual is an employee of the employer;
(3) Any person whose collection activities are carried
on in his or its true name and are confined and are directly
related to the operation of a business other than that of a
collection agency, such as but not limited to trust companies,
savings and loan associations, building and loan associations,
abstract companies doing an escrow business, real estate
brokers, public officers acting in their official capacities,
persons acting under court order, lawyers, insurance
companies, credit unions, loan or finance companies, mortgage
banks, and banks;
(4) Any person who on behalf of another person prepares
or mails monthly or periodic statements of accounts due if all
payments are made to that other person and no other collection
efforts are made by the person preparing the statements of
account; or
(5) An "out of state collection agency" as defined in
this chapter.
D. "Out-of-state collection agency" means a person whose
activities within this state are limited to collecting debts
from debtors located in this state by means of interstate
communications, including telephone, mail, or facsimile
transmission, from the person's location in another state on
behalf of clients located outside of this state.
E. "Debt" shall include fines, and other debts including any
restitution that is being collected on behalf of a crime
victim and the fee required under Section 3.30.020(A) of this
chapter.
3.30.020 Collection Agency Use Procedure.
A. In addition to all other remedies for collecting amounts
owed to the City, the City may retain, by written contract,
the services of a licensed collection agency to collect public
debts owed by any person pursuant to the procedures set forth
in this chapter. If the City retains a collection agency to
collect public debts owed to the City, a fee, payable by the
Ordinance No. 5063
Exhibit "A"
April 29, 1998
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debtor, shall be added to the outstandin9 debt for the
collection agency fee incurred.
The collection fee shall
amount owed to the City before
fee.
be thirty percent (30%) of the
the addition of the collection
B. Before assignin9 a debt to a collection agency, the City
must have evidence that the City sent the debtor a written
bill for the debt amount.
C. If a debt amount owed to the City is not paid within
sixty days of the date on which the amount becomes due, the
Director of Finance may send a written notice, by regular or
certified mail, to the debtor's last known address according
to the City's records. The written notice shall state the
amount owed to the City, the amount of any applicable interest
and penalties, that the City may assign the debt to a
collection agency for collection if the amount owed, together
with any applicable interest and penalties, is not Paid in
full within 30 days of the date of the written notice. The
written notice shall also state that if the City assigns the
debt to a collection agency, the City shall charge the debtor
a fee to be added to the outstandin9 debt for the collection
agency fee incurred or to be incurred as provided in this
chapter.
D. If the amount owed to the City, together with applicable
interest and penalties, is not paid in full within thirty days
of the date of the written notice as provided in Section
3.30.020(c), the City may assign the debt to a collection
agency to collect the outstanding debt, together with any
applicable interest, penalties and the collection a~ency
service fee.
E. Collection agencies assigned debts under this chapter
shall have only those remedies and powers which would be
available to them as assignees of private creditors.
Ordinance No. 5063
Exhibit "A"
April 29, 1998
Page 3