Bank Sends Collectors After City

by Mike Bevel, CollectionIndustry.com

Ultimately, it doesn’t matter if you’re an individual, a small business, or the city of Hudson in New York: don’t mess with Visa. They will hunt you down.

FirstBankcard issued three Visas to the city of Hudson. One went to Mayor Richard Tracy, one to Police Chief Ellis Richardson and one was a "floating card" for use by other city officials.

Then, of course, charges for on-line dating services, flowers, and meals at expensive restaurants started showing up on the statements. And then came the finger pointing.

During all this, which came to light back in September, Visa figured that someone would pay the $4,000 bill and sort out the dirty laundry later. And Visa waited. And Visa waited. And finally Visa said, “I’m too old for this,” and turned the city over to a collection agency which makes regular "dunning calls" to city officials, according to Common Council President Robert O'Brien.

"Now this matter is costing the city real money, and to me, that moves this issue out of the policy area and, in my mind, into the criminal," Mr. O'Brien told reporters on Monday. He added that city officials requested that the District Attorney's Office investigate the matter of unauthorized credit card use and turned over all the information the city had.

As of press time, the city of Hudson has not paid the $4,000 due to Visa.

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