$140 sewer bill turns into foreclosure notice and $50,000 tab for homeowner | The Sideshow - Yahoo! News: Dominick Vulpis admits he had an outstanding $140 sewage bill. But when that bill went unpaid for four years, the $140 bill turned into a home foreclosure notice and $50,000 in debt.
MSNBC reports that Middletown, N.J., turned over the utility bill to Approved Realty Group, an investment company. The practice is far from unheard of. Private companies buy up existing debts from local governments and then pursue the responsible parties, charging interest and fees. Several states have placed limits on the amount of money these private companies can charge for unpaid public utility bills.
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Another example of local governments emulating HOAs. Privatize public debt and pay the debt collection company and legal counsel a handsome fee for their services. In this case, an astonishing multiple of 268 times the size of the underlying delinquent sewer bill.
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