Memphis seeks change for delinquent tax collection

MEMPHIS, Tenn. (AP) -- Memphis is seeking alternatives to a Texas-based delinquent tax collection firm that is facing a class-action lawsuit over the fees it charges.

Bobby White, chief of staff for Mayor A C Wharton, told The Commercial Appeal that the administration does not want to renew a contract with Linebarger, Goggan, Blair and Sampson.

The firm makes its money by charging fees to delinquent tax payers. Memphis residents have brought a class-action lawsuit against the company for charging a 20 percent fee. Attorneys in the case argue the company can legally charge only 10 percent.

The firm won a no-bid contract in 2004 that expires at the end of the year. Linebarger has collected around $190 million for the city.

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