Kentucky law allows third-parties to purchase property taxes. The system theoretically allows the state to collect past due taxes without incurring the cost of collection. The system, however, is broken.
That’s because third-parties are allowed to charge high attorney fees for the cost of collection. Those attorney fees are capped based on the value of the tax lien at issue. Importantly, those fees must have actually been incurred. But that isn’t what happens.
Instead, tax purchasers automatically impose the maximum possible amount of attorney fees, making payment sometimes impossible for Kentucky homeowners. And, cynically, the system has resulted in attorneys purchasing tax liens for themselves, so that they can receive the benefit of an unearned fee at the expense of Kentucky consumers.
Our firm is researching claims against these rogue tax collectors. If you believe you’ve been a victim of this conduct, please give us a call.