In the aftermath of the Ferguson Report, local courts face increased scrutiny when it comes to collecting fines and fees. Considering the ongoing funding crisis local governments face, this revenue still plays a critical part in operational budgets – despite the new stigma. As such, courts must take extra care to ensure ethical practices while still optimizing recovery efforts in order to manage their limited resources and remain compliant.
This post is the third in a four-part series that identifies the key steps to ensuring ethical and compliant court collections.
Part Three: Payment Plans
Strict policies concerning payment in full on large legal fees only exacerbate the situation for low-income defendants or those already experiencing financial hardship. One of the key issues identified in the Ferguson Report as related to fines and fees collection was the refusal to accept partial payments. Adopting a collection practice which includes some form of a payment plan option can create a win-win situation for both the court and the defendants.
Payment plans provide defendants an affordable method for resolving their legal fee obligations and avoiding penalties. Some court-imposed penalties, such as driver’s license suspension, can actually create a bigger barrier to debt resolution by making it more difficult for the defendant to maintain employment. Though the payments may occur in smaller increments, offering payment plan options can actually result in better financial recovery for both court and those paying their fines in the long term.
Early Intervention Services
Many courts do not have the internal resources to manage their own payment plans and may find a third-party service option is both more efficient and affordable. Third-party vendors already have the infrastructure in place to facilitate payment management through an accessible, compliant and transparent channel. Technology tools such as online payment portals and mobile apps provide a level of convenience that payments through the court’s service department cannot. This type of solution also frees up the court’s service resources to handle more complex tasks.
When choosing a payment plan system or third-party service, courts should consider the following criteria:
Variety of payment options (eCheck, debit/credit cards, money orders, wire transfers, or payment by phone or mail).
Ability to set up recurring payments (auto pay)
Available channels for accepting payments (toll-free phone numbers, direct mail, online, mobile app, etc.)
Transparency (clearly defined fees and interest rates)
Service Reputation (established policies for adhering to the court’s requirements and respectful handling of its citizens).
Data Security (compliance and privacy for third-party services and technology)
Download our White Paper: Four Steps to Achieving Compliant and Effective Processes