Library Fines Hit Credit Scores
Remember that overdue library book that you just were never able to find? You probably received scores of letters or notices in the mail, advising you of the fines that you had accrued over time, you may have just ignored these anticipating that they would just go away. Unfortunately, at least in some libraries in Arkansas….they’re baaack! If you continue to let your late charges and lost materials go untouched, you could be hounded by a collection agency or have an attorney contact you. And your refusal to address these issues may actually result in a lowered credit score.
FORT SMITH, Ark. — Some local libraries are no longer using the honor system to deal with overdue books — they’re going straight to their patrons’ credit scores.Librarians are turning delinquent customers over to collection agencies to recover overdue fees and lost materials. Some are even using a local prosecuting attorney to get the money and books back.They said the business-like approach is needed because they’re letting thousands of dollars walk right out the door every year.
They said the business-like approach is needed because they’re letting thousands of dollars walk right out the door every year.
“We lose about $35,000 a year in materials that are checked out and not returned,” said Jennifer Goodson, the Fort Smith Public Library director.Librarians said the use of a collection agency can hit the user’s credit score.“I could say that would motivate me,” said Marsha Wisner, of Greenwood.The Fort Smith Public Library said it doesn’t use a collection agency because they depend on late fees.
“Those overdue fees and fines, they do add up, so at our library, with the size of our community in Fort Smith, we take in about $100,000 every year,” said Goodson.
Not all libraries use the honor system, though. Fayetteville Public Library uses a collection agency and that has some customers worried.“If people don’t bring their books back, the library may start charging more in late fees for other people to make up for what people don’t pay,” said Courtney Changler, of Fort Smith.“The question would be, how many times before it gets put on your credit report?” said Wisner.Most libraries don’t turn customers over to a collection agency right away because they expect some late fees and factor it into their budgets. Before they turn an account over, they usually send out letters and make phone calls.
Article from 4029tv.com
