Kentucky Town Stops Billing Visiting Drivers for Crashes

August 10, 2009

  • August 10, 2009 at 1:36 am
    John says:
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    Florida recently passed Legislation that prohibits anyone from being billed for Police Dept and Fire Dept “Response Fees” following an auto accident.

    Apparently, a collection agency came up with the idea and began promoting their idea to local governments whose tax revenues are shrinking in this economy. Many local governments in several states passed ordinances calling for “Response fees” to be levied against either the “at fault party” ( in an auto accident ) or the party who was not a local resident.

    Following an accident, the local gov’t agency would send its “fee” data to the collection agency, which in turn would send a letter and invoice to the “at fault” party in the accident, telling them to turn this bill over to the party’s insurance carrier to be paid under their liability insurance. The collection agency would keep a percentage of what was collected.

    In one case, one of my own policholders received a bill for more than $ 2,800.

    Thankfully, the Florida Legislature received enough consumer complaints to take positive action to prevent this “collection agency windfall” from continuing !



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