Chicago Fast Tracks Recovering Old Parking Ticket Debt Through State Tax Refunds
Windy City. City of Big Shoulders. The City that Works.
Chicago has a lot of nicknames but maybe taxpayers should start calling it the “Fastest City on Earth”–at least when it comes to collecting revenue.
Less than two weeks ago, the Chicago City Council passed a debt recovery ordinance which allowed the city to use the Illinois State Comptroller’s office to grab taxpayer’s Illinois income tax refund to pay for outstanding debt from parking tickets, red light camera tickets, water bills and other other overdue debt.
The ordinance became effect on February 15th, the day the Mayor signed it.
Immediately, in fact that same day, the city transmitted the required paperwork to begin the process of intercepting taxpayer refunds on behalf of Chicago according to Illinois State Comptroller spokesperson Michael Dropka.
“The City of Chicago sent data to the state after passing an Intergovernmental Agreement on February 15, 2012,” said Dropka.
Illinois Comptroller Judy Baar Topinka’s office began issuing notice letters to affected taxpayers as early as February 21st, according to people who have received the letters.
Many angry taxpayers began receiving the notices from the Comptroller a few days later.
I got a letter today from the state claiming Chicago is withholding $100 from my income tax refund for an old parking ticket,” says Glen Popelka who resides in the western suburbs. “I called the city to get the details, and the ticket is a parking in the alley violation from October 8, 1993. The clerk says I challenged the ticket and lost, but never paid. They can not produce evidence of the challenge.”
Some drivers have been confused by the widely reported promise that past due debts were limited to only as far back as 2005, while in several instances tickets being collected upon go back as far as 20 years. The city, according to one person confused why they were on the hook for a parking ticket from 21 years ago, explained that in some cases, Notices of Final Determinations were sent on the tickets back in 2005. So even though the ticket may have been issued prior to 2005, the debt still was collectable under the new law.
Other taxpayers never even received the notice and found out by checking the Illinois Department of Revenue website.
“I never received a notice,” says Katherine C., who asked her last name be used. “I filled my return with Rapid Refund and when my state (refund) did not come in and it had been a month I went to the Illinois tax site to check the status again. It said “processed no refund”, with an 800 number.”
But when Katherine called the state’s 800 number, she was told of the City’s effort to collect debts for past due parking tickets and was given a City of Chicago number to call, which further angered her.
“I have called the Chicago number because there are no tickets under my license,” she fumed. “I don’t remember my plate number because it was so many years back, and that (phone) number stays busy all day.”
According to Dropka, taxpayers can protest the city’s effort to grab their tax refund.
“When an offset occurs, a resident receives a letter explaining everything in detail (i.e. reason for offset, what is owed, process for protest),” explained Dropka. “When it comes to protests specifically, residents are instructed to submit their challenge in writing with any supporting documents.”
Dropka says the city does not get the proceeds immediately. By law, they have to wait at least 60 days from the notice date to allow the taxpayer to file a protest. If a protest is filed, a hearing officer on behalf of Local Debt Recovery will make a determination on the validity of the protest between 1 and 30 days, depending how complex the matter may be.
At the very least, this new state law and companion Chicago municipal code, could significantly delay a taxpayer’s state refund.
I also just received a notice for $200 dollars in tickets from 1998 on a Buick I sold. I have no record of the sale after all these years. I have never lived in Chicago, never driven in Chicago, and apparently have no recourse after all this time. This is just ROBBERY!
Surprise Surprise!!! (sarcasm alert!) Other people like me just got a letter from a collection agency stating that they owe money on parking tix from the mid 90′s.
I know I paid those tickets cause my car was booted. Had to pay all of the tickets to get the boot removed, and then I immediately sold my car because I caught on quicke that the whole city/car/ticket program was a scam. I’ve already paid the City thousands and now there back at it.
And yes, I have no proof that I paid. What an f#$@ing cess pool of corruption. Thats why I left the state in 2005. My recent collection notice is for $683. I live in Oregon now. My lawyer’s opinion is that there is little to be done. There has already been a civil judgment made. He did say that an Administrative hearing found me liable, NOT a court. So I’m just gonna let them try to bring a case to an Oregon Court and if they do pursue the debt, I’ll at least be able to get in front of a judge and contest the absurdity of the debt. Any other ideas for an out of state City of Chicago victim?
Loulah,
If you live outside of Chicago or perhaps outside the state of Illinois, what are you worried about?
What can the city of Chicago do to you if you don’t pay?
Nuthin!
HammondB3,
I agree with you. Living out of state like you do, I highly doubt the city or their collection agencies can do anything to you. The nearly $700 you allegedly owe is probably not enough to warrant a lawsuit.
A point about the Collection Agencies..
If I remember correctly…the City Sells the Debit to the Collection agency for a certain amount per Ticket or outstanding debit bill.
Third-party collection agencies often work on commission, where they receive a percentage of the amount that they collect. Individual collectors are often paid a low base wage plus commissions based on their personal performance.
Some agencies also purchase large groups of charged-off bad debts for a small percentage of the “face value” (amount owed.) After a debt is sold, the debtor now owes the full amount to the purchaser. Since the chances of recovery decrease substantially with time, an agency might only pay 1% – 5% of face value. The agencies’ profits come from the difference between the purchase price and the amounts that are eventually collected.
The First question you need to ask of any collection agency that contacts you regarding “Outstanding” Chicago Parking Tickets is:
1. Are you a 3rd Party Commission Collection agency working With the City of Chicago or did your Company purchase the debit as a Charge Off for a percentage of Face Value?
If they are 3rd Party and Purchased the Debit from the City…they are on the Hook for it and actually spent less than the total amount of the ‘owed fines.”
Example:
Tom Smith gets 4 tickets for Street Cleaning in Chicago in 2009….but moves to a Different State before 2010. If Tom didn’t Change his Address with USPS…the Notices of Violation from the City will potentially never find him. Even though at this point Tom’s vehicle is on the Boot list..so long as he never drives any of his vehicles that had 2 or more tickets on it back to Chicago, he won’t risk the Boot.
Now that it is 2013…all 4 of the ‘tickets’ with have gone into Final Determination, and Doubled. Each ticket doubling from 50 to 100$ for a grand total of 400.00USD outstanding fines.
Lets further suppose that the City sells the Debit to Arnold Scott Harris for 50% of Face Amount….to wit 200.00 USD to recoup Some Funds from the outstanding tickets.
ASH is now 200.00 out of pocket and has to Hope that IF they can Track down Mr Smith, he decides to actually send in a Check or Money order for the Full amount.
Since the City Decriminalized Parking and Compliance Tickets back in the early 90′s (for those that don’t know: you can be late on a ticket and not have a warrant issued. Before they were decriminalized, a warrant was possible/legal for scofflaws if I remember right), the Collection Agents can only waste their time and money on the Phone or with Mailers. Filing to Garnish is difficult because certain information is required via a Court….SSN and Job location/name for starters.
Now…as always, I do not nor have I ever advised Not Paying your Tickets. I always suggest contesting them and keeping a Record of Payment with your Tax Records….because of crap like this.
Parking Ticket Geek and Capt M-Plate….. I see the point about third parties buying the debt. for a small percentage and/or individuals working for a commission. But my question is…. is it better to do A or B.
A. Ignore the Attorney at law letter altogether in ordere to not raise any flags or supply ANY information.
B. Have my lawyer/me write a letter requesting every possible detail of the alleged debt. including the additional fines (not listed in the initial letter) the officer number and all payment records of my other parking tickets. And send this certified mail return R R and hope that they do not respond within 30 days. If they don’t, I can claim that they are not following the guidelines of the new FDCP law.
What do you think? No contact or roll the dice? Thanks, you guy rock!!!!!
Those damn red light cameras have NOTHING to do with safety! It’s just a way to steal tax-payer dollars! Uncle Rahm just got my state refund!
How can you get the information that the funds were actually applied to your tickets? My state refund was taken last year and this year for old tickets but, I dont see where last year or this years funds were applied!