OUTSOURCING OR SELLING COUNTY DEBT

Board of County Commissioners · 2026-07-21 · report

This report analyzes the feasibility of outsourcing or selling Miami-Dade County debt. The County's Credit and Collection Section (CCS) identified approximately $41 million in gross outstanding debt, out of a total of $525 million (as of July 29, 2025), that could potentially be sold to third-party collection agencies or receivables buyers. The report advises against selling the majority of the debt (92%) due to compliance requirements, data privacy concerns (HIPAA), and the need for personalized constituent assistance. The sale of debt could also expose the County to legal risks under the Fair Debt Collection Practices Act (FDCPA). The report notes that historically, external agencies have had limited success compared to in-house capabilities. The recommendation is to consider selling only a portion of the debt portfolio to generate cash flow, with specific criteria to minimize risk. The report references past contractor pools from 2003, including Linebarger Goggan Blair & Sampson LLP and Alliance One Receivables Management, Inc., and notes that similar providers are still active in the market. The matter is pending Board of County Commissioners (BCC) assignment.