NORFOLK, Va. — Norfolk Commonwealth's Attorney Ramin Fatehi announced a change to how court debt will be collected, overall decreasing fees.
Under current Virginia law, Commonwealth’s Attorneys are required to choose the method of collecting outstanding court debt, which could be a private collection agency, the county or city treasurer, a local governing body, or the Department of Taxation. Commonwealth’s Attorneys are also required to assess and compare collection fees.
Moving forward, the responsibility for collecting outstanding court debt will shift to the Virginia Department of Taxation, which has a substantially lower collection fee.
"This represents a step forward to help people navigate their court debt, which too often traps those with few resources into cycles of poverty," wrote the Commonwealth Institute in a press release.
"While collection fees can reach as high as 35% in some localities across Virginia, the Department of Taxation charged 16.4%."
The announcement is consistent with guidance from the American Bar Association, which has warned about the “inherent conflicts of interest” when for-profit companies are responsible for collecting court fines and fees.
Profits secured from collecting court debt are also problematic in light of research by The Commonwealth Institute demonstrating that court fines and fees are imposed with unparalleled intensity on Black communities and people with low incomes in Virginia.
“Court costs are an unfair tax on poor people and their families. Profiting off of those taxes with excessive collection fees is even more unfair,” says Commonwealth Attorney Ramin Fatehi. “Norfolk will now use the lowest collection fee allowed under our current state laws. We should use the criminal justice system to promote justice and safety, not to make profits.”
Loudoun County is also implementing this new change.
