Wyoming City Is Trying To Collect

In the town of Cody, Wyoming, 219 utility accounts were sent for collection. Only four of the bills belonged to property owners. Some are suggesting that the town council should think about holding property owners responsible for utility costs that their renters left unpaid. A policy like that could have added $180,000 to the city budget during the past five years, and furthermore, other utility users are subsidizing those that don’t pay their bills.

Landlords are offering fast and obvious objection, asking the city council why it should be their responsibility to pay for a bill that someone else racked up. Another plan has been proposed though, one that would require a deposit from every person opening up a utility account.

This change in policy would involve a number of changes such as a mandate that a property owner co-sign for a renter’s account. Tenants would be billed on their own account but have an open landlord account for each property. Unpaid bills would be transferred to the landlord’s account if the tenant doesn’t pay.

Deposit requirements would go from $150 to $200, and would be necessary for all accounts, regardless of their past credit history. Property owners would be notified of delinquencies, and they would be encouraged to get in touch with the city to determine if the bill got paid before returning rental deposits. All property owners would have to keep utilities in their names.

Proponents of the plan say that it is not out of line with what other cities are doing, and it is a simpler and more cost efficient way to collect money. Collection agencies receive about one third of what they collect in the city, and 60 percent of bills that go to collection remain unpaid.

No matter what decision they arrive to, it should be quick: city officials are noting a trend towards fewer people making deposits and more accounts being sent out for collection.

Mallory Megan works for Rapid Recovery solution, a credit collection agency. Our aim is to collect as much of your cash as possible.