Chicago City Wire

The City of Chicago has retained Markoff Law LLC to collect unpaid municipal debts, including violations, utility bills, and damage claims, under a contingency fee agreement. This decision was revealed in a September 2024 letter obtained through a Freedom of Information Act (FOIA) request.

Markoff Law LLC is a Chicago-based law firm established on April 1, 1980. The firm specializes in creditors’ rights, collection law, and judgment enforcement across Illinois, Wisconsin, Michigan, Kentucky, and Ohio. Members of the firm have held leadership positions in organizations such as the National Creditors Bar Association and the Illinois Creditors Bar Association.

The City appointed Markoff Law LLC as Special Assistant Corporation Counsel in September 2024 to recover various municipal debts. The engagement letter permits the firm to collect fines, utility fees, property damage costs, and more without requiring prior City authorization. Markoff Law will also advance litigation expenses that are reimbursed only upon successful recovery.

According to a white paper by the Washington Legal Foundation authored by former Nebraska Attorney General Doug Peterson, contingency-fee arrangements between cities and private law firms raise policy concerns. The report questions whether municipalities are relinquishing too much control over law enforcement to private entities with financial incentives and calls for stronger oversight and public transparency.

The City agreed to pay Markoff Law between 18% and 30% of funds recovered depending on the debt type. For instance, the firm earns 18% on traffic violations and 30% on property damage claims. Certain exemptions apply; for example, no fee is charged for utility payments made within 20 days of shutoff posting.

The contract requires Markoff Law to comply with all applicable legal and ethical standards in its debt collection efforts. The firm must also adhere to Payment Card Industry (PCI) Data Security Standards, submit monthly performance reports, and provide an annual certificate of compliance. These provisions aim to protect sensitive payment data and ensure accountability.