... municipalities keep going out on tender for debt collection, as if debt collection was this sacred cow or panacea to solve all problems.
One may as well try to keep a tsunami back with one's bare hands.
Debt collection is a great way to provide outlet for the debt collecting personality, often one that relishes the act of debt collection as the deserving outcome for the 'dishonourable'.
Like undertakers, debt collectors serve a role too, that is the way of Nature.
It is also a great way to make some easy money if one can win these tenders.
Does it provide a genuine business solution?
The facts suggest not, CFOs of municipalities are in a zombified knee-jerk reaction trying to mimic their private sector counterparts who of course can simply deny service and shut the 'dishonourable' out.
A holistic approach, where debt collection becomes the tiny component that it is in any sustainable solution is the more appropriate way.
Debt collection is necessary for dishonourable consumers. But the vast majority of 'dishonourables' are not dishonourable. They would pay if they could.
But yes, holism is a complex discipline, and silos and simplified delusions of how to solve business problems are far more tempting to clutch at ...