Late Library Fines Can Effect Your Credit Rating

Almost every one of us has had late fines at our local library, and while most are manageable, others can be steep. Items returned more than a few months overdue can become costly, and lost fines can be up to one hundred dollars, depending on the material and how much was lost. Sometimes patrons enter a payment plan, but others either ignore the fine or refuse to pay it, assuming that the library will eventually forget about the fines.

That assumption is incorrect. Enter Unique Management Service, Inc., a collections service that specializes in library fines. According to their website in the section titled "What We Do"¹, they give the patron who owes fines a "gentle nudge", sending them reminder letters and then calling the patron if there is no response. If the patron has moved, they track them and send them a letter, and allow the patron to resolve the fine within at least one hundred twenty days before notifying credit report agencies. As the page explains, "Patrons are credit reported only as a last resort."¹

The Westerville Public Library in Westerville, Ohio, a Unique Management client, explains their process on a web page for their patrons. ² An account is reported when it is 175 to 206 days overdue, after the patron has been contacted three times by mail and twice by phone. The library also offers options to the affected patrons, suggesting returning the materials, trying to renew them, or contacting the library by phone or through their website.

While some might see this as harsh treatment of library patrons, the reality is that libraries are funded by tax dollars through their state or county, meaning the materials belong to all those in the county. When an item is not returned or is returned very late, it affects the other people of the community. In an article for the New York Times, Jane Montalto, an overseer of the musical scores at the Queens Library, dislikes the libraries being a source of punishment, but also feels that one person's mistake or indifference can cause problems for others. "Are you honest? Are you responsible? Or are you just one of those customers who uses us - who has their own collection out there?" ³ she asked, voicing a sad but true occurrence in libraries: Those who check out items and never return them, or insist they did, while secretly keeping them at home.

When state and local governments have budget cuts to consider, the libraries are often the first to suffer, with the changes affecting library staff and patrons. Layoffs, decreases in hours, branch closings, cutbacks in collections, canceled programs, and an increase in overall fines have negative impact on communities that rely on local libraries. Families that enjoy free or affordable programs for their young ones may not be able to afford hikes in program fees, or they may see those programs canceled due to lack of funding or staff. A decrease in collections affects all patrons, who may not see replacements made for lost or damaged audio/visual materials, or a lack in new materials, whether it's books, movies, audio books, or CDs. As libraries face challenges in being able to maintain their level of service, or even their very existence, utilizing a collections agency to recover funds becomes a more feasible option. As an article in USA Today states, the Queens Borough Public Library is the busiest library in the country, "with 16.9 million items circulating last year - has [had their budget] declined $14 million the past two years, according to spokesman Joe Catrambone." ⁴

The ALA (American Library Association) also explains the necessity of overdue fines for libraries, and the option of amnesty programs at libraries. "[T]he cost of replacing a book is high, and it is cheaper in terms of both the costs of the replacement book and the staff time to order, process, etc., to forego fines and simply get the books back, using amnesty programs," ⁵ their site states. Some libraries opt to have an amnesty week before giving overdue accounts to Unique Management, informing patrons of the upcoming change and giving them an opportunity to return long lost items and pay down fees before their credit can become affected.

To keep from being reported by your local library, stop by and ask if there are any outstanding fees on your card. Keep in mind that if you let someone borrow your card, you are still liable for fees incurred. A library patron posted a story on Complaint.TV telling of her fine of over $732, insisting that someone else must have borrowed her card. ⁶ Posters on CreditBoard.com tell similar stories, with parents paying off children's fines and overdue items they had forgotten about. ⁷ Ask your library if they plan to have an amnesty week or weekend, and put it in the suggestion box if they have one. If you choose to go ahead and pay your fines, remember that once the late fines are paid, your credit is not affected. Unique's customer development manager Kenes Bowling stated in an article for CreditCards.com that only delinquent fines that are unpaid "shows as an open account". ⁸

As frustrating as high library fines can be, the consequences of ignoring them or refusing to pay them are too significant to overlook. Gail Cunningham,
Senior Director of public relations for the National Foundation for Credit Counseling sums it up in the CreditCards.com article: "As much as someone may scoff at seeing a library fine on your credit report, it can really become part of your overall credit composite." ⁸ Contact your local library and make sure you're not one of the ones who could become negatively impacted.

1- Unique Management Services * What We Do (http://www.unique-mgmt.com/whatwedo/index.html)

2- Westerville Public Library: Collection Agency - Unique Management Services (http://www.westervillelibrary.org/policies/guidelines/collection_unique_mgmt-guidelines.html)

3- Late Library Books Can Take Toll on Credit Scores - New York Times
Dec 26, 2007 (http://www.nytimes.com/2007/12/26/nyregion/26library.html?pagewanted=1&_r=1)

4- "Debt collectors go after overdue books" By Ellen Hale, USA TODAY. 6/27/2004. (http://www.usatoday.com/news/nation/2004-06-27-libraries-usat_x.htm)

5- "Fines and Overdues" ALA (American Library Association) (http://wikis.ala.org/professionaltips/index.php/Fines_and_Overdues)

6- Unique National Collections Complaint: "Overdue Books Cost $732 - Collection Agency" - Complaint.TV News (http://www.complaint.tv/unique_national_collections-1028.html)

7- "Library fine and Unique Collection Agency....help!" - CreditBoards (http://creditboards.com/forums/index.php?showtopic=356358)

8- "Surprise! Unexpected items can appear on a credit report" By Jeremy Simon. Aug 7, 2008 (http://www.creditcards.com/credit-card-news/surprise-weird-items-impact-credit-report-1282.php)