Chicago City Wire

The City of Chicago has engaged the law firm Talan & Ktsanes to collect debts owed to the city, including water debt and property damage claims, on a contingency fee basis. This arrangement is detailed in a retention agreement obtained through a public records request.

The Law Offices of Talan & Ktsanes have been serving clients in Chicago since 1984, with a focus on consumer and commercial collections, litigation, and retail collections. The firm boasts over 50 years of combined legal experience and handles millions of dollars in collection cases daily. It is noted for providing individualized attention and utilizing modern technology in its collection efforts.

Under the agreement with the City of Chicago, Talan & Ktsanes is tasked with collecting various debts such as water bills, property damage claims, and ordinance enforcement fines. The firm receives 25% of collected water debt, 30% from property damage recoveries, and 22% from other debts unless water debtors pay within 20 days of receiving a shutoff notice.

Talan & Ktsanes must remit all proceeds from collections either daily or weekly to the city and provide detailed monthly reports on their progress. The firm is also required to comply with federal, state, and local laws while adhering to Payment Card Industry (PCI) Data Security Standards by providing an annual compliance certificate.

According to a recent white paper by the Washington Legal Foundation authored by former Nebraska Attorney General Doug Peterson, questions are raised about the authority and transparency of municipalities hiring private law firms on contingency fee contracts for public debt collection and litigation. The paper urges greater oversight of such public-private legal partnerships.

The City of Chicago’s reliance on multiple outside law firms for debt collection has been ongoing for decades. Firms such as Heller, Frisone & Pellizzari; Heavner, Beyers & Mihlar; and Arnold Scott Harris P.C. have held similar contracts with comparable contingency fee structures, highlighting a longstanding dependence on private counsel for municipal collections.