[Michlib-l] Collection and Prosecution Policy Reponses

[Myla Stuart]

*Thank you all for your prompt replies.  I have included all the responses
I received as each one is slightly different and will help others in
setting policies.  In summary, most responding libraries use Unique
Management for collections and write off all bankruptcy fees.  Some
libraries give the bankruptcy patron a clean slate with all privileges
restored, other options are listed. *


*Canton Public Library:*

    1. No we in Canton do not get the authorities involved to get our
materials back if they are legally checked out.   We have involved them in
cases of theft or card use fraud.

    2. When I get the first notice of bankruptcy, I place a note in the
patron record instructing my staff to not attempt to collect money owed,
but to encourage the patron to return the material (we only use a
collection agency when materials have been billed).  Once I get the notice
of the result of the bankruptcy, I will remove the note if the result is
that it has been dismissed; or, waive all fines and replacement costs if
the result is discharged, and I add a note to the patron record addressing
the fact that all fines have been waived per order of bankruptcy.  We have
chosen to waive all fines instead of just fees for billed material-wipe the
slate clean, so to speak-instead of forgiving just the fine portion of the
balance. We do not block the patron in any way once the fines have been
waived.
    3.We use Unique Management as our collection agency and have chosen $35
as our threshold, however, as I said earlier, we do not send anyone for
fines only.  Only when a patron has fines on their account, and then are
billed for an item that brings the balance over the threshold, or if the
materials for which they have been billed equals $35 or more, will their
name be submitted.


*Brighton District Library:*

   The Brighton District Library has used Unique Collection agency since
about 1998.  We have had a significant amount of materials returned, as a
result.  We send patrons to collection only for LOST items, including the
$5.00 Processing Fee.  The combined cost needs to be $25 or more.
   What I have learned from Unique in regards to bankruptcies is that once
a bankruptcy has been discharged (granted), fines and fees need to be
waived, including the $10.00 Referral Fee.  LOST items are not
waived/forgiven; bankruptcy does not apply to items that are owned by
another entity, such as a library.  If the item is returned, then the
overdue fine needs to be waived.  This applies only to fines/bills *prior* to
the file date for bankruptcy.  All of this would apply to the accounts of
any children involved, as well.

*Mulliken District Library*

Hello!  I can speak first hand about getting reimbursed for materials and
fines.  I just started here as Director in January.  My previous job was in
law enforcement, so I kind of had the upper hand in knowing how to go about
collecting fines, etc., and not letting people get away with not returning
items (my example would be to rent a carpet cleaning machine from Meijer
and not return it and see how THAT goes)! HA!

Anyway, our prosecutor (Eaton County) has a special unit that handles
"failure to return rental property", and they even came to a meeting of the
Eaton County libraries and did a presentation (long before I started) on
how to go about collecting payment, etc.  I had a patron who had a HUGE
amount of fees, and the materials taken out were very expensive.  At any
rate, it took from February to this week, but I got reimbursed for all
materials that were NOT returned and outstanding fines (magically she
managed to return some of the materials when the prosecutor got
involved....however, she ignored all my calls and registered letters I sent
to her).  So yes, it is possible to collect.  Had she not paid up, there
would have been a warrant for her arrest.  It does and can happen!  Contact
your local prosecutor, and I would guess they have a special unit for the
same type of thing.

I haven't had to deal with any bankruptcy issues yet.  Not sure how that
would be handled, but hopefully I won't have to deal with it.

*St. Charles District Library*

We use Unique Management debt collection service for any materials or fines
over $25.00.  If the patron does not pay, they would be reported to a
credit agency.



Bankruptcies would still be banned from checking items out if their fines
exceed $5.00.   They had ample opportunity to get their account issues
resolved and materials returned before they went to collections or incurred
any fines or fees.




*Commerce Library:*

We work with Unique Management Systems for delinquent accounts of $25.00 or
more.  They work exclusively with libraries and I would highly recommend
them if you are thinking of sending patrons into collections.

Every month we get reports from Unique regarding bankruptcies.  Any patrons
who have their bankruptcies discharged (approved) , we cancel all
outstanding fees and fines on the account.  The library account is then
unblocked and is treated the same as any other account.  We don't have very
many of these, maybe two or three a year.

As for prosecutions, we have never done that and I don't expect that it's
something that will be on the table any time soon.  It always has the
potential of generating bad PR for the library.   But if you are in a
situation where some patrons have huge amounts of unreturned materials
costing hundreds of dollars. I could see where a library may decide to go
ahead with it.
* Berrian Springs:*

We haven't prosecuted anyone for materials or fines.

We have received bankruptcies...one.  All that was owed on that account was
late fees.  The fees were cleared and the patron left active, able to check
material out and use the computer.  We don't have a written policy
regarding this.  If the library were to receive more bankruptcy filings I
would most likely clear the account and allow the patron to check material
out.

More then ten years ago a former director looked into using a collection
agency-Unique Management-but the library didn't contract with them and
haven't looked into it since.

*Roseville Public Library:*

I met with the Roseville City Manager, Roseville City Attorney and the
Library Commission this past spring to discuss patrons with large bills.

We have used a collection agency (Unique Management) for the past seven
years.  Cards are blocked at $5.00 or more in bills and accounts are sent
to the collection agency for any bills that reach the threshold of $25.00.

When patrons file for bankruptcy, the library either receives notification
from the U.S. Bankruptcy Court or from Unique Management, depending on who
the patron listed as the creditor.  We immediately stop the collections
process,however patrons may not use their cards until the judgment has been
decided.  If the bankruptcy is discharged, the library's attorney has
stated that we must clear all bills.  If the bankruptcy is denied, we
continue the collections process.

The library has many patrons with bills in the hundreds of dollars, quite a
few owing over $500 for either an individual or a family.  We set a limit
of $500.  When a patron or family owes $500 or more, I contact the City
Attorney and he sends a dunning notice by regular U.S. first-class mail.
We do not take the patron to small claims court for a number of reasons:

First, the attorney cannot be involved.  I would essentially be taking the
patron to small claims court, with all of the work involved for possibly
little return.  The library must pay to have a process server delivery
notification of the small claims court case.  If the patron refuses to
accept the notice, the money and ime have been wasted.

If the small claims court finding is in the library's favor:

Often the patrons do not have wages to garnish, while tax refunds may be
garnished

Tax refunds may be garnished, but it is a long shot

The Library Commission determined not to have me pursue these large
accounts beyond having a dunning letter sent.

I asked the directors from the 22 libraries in the cooperative if they go
further than a collection agency and no one does.

I choose not to involve the Roseville police, although the Chief of Police
has stated that he is very willing to pursue criminal cases with warrants
if I ask him to, because our local police are short-staffed and very busy.

*Saranac Public Library*
 We have never pursued warrants to get our materials back.  I have heard of
it but I am not aware of any libraries that use this type of approach in my
area (West Michigan).
2. I have yet to deal with bankruptcies either although I do know that if
we receive information that someone is in bankruptcy that we have to let
our collection agency know as they can no longer attempt to collect the
money.
3. We have a $40 limit before they go to collections.  We are charged $8.95
for every person that goes to the collection agency- which is then charged
back to them so if they pay, we do see the money back eventually.  This is
regardless of whether this is just fines or if they still have material
out.  I had one new patron who checked out 70 books, then brought them back
1 week late.  70 x 1.05= a whole lot of fines.  She went into collections
because she didn't pay it for several months.  I felt bad but at the same
time....the books were late.


*Myla-Jean Stuart, Director*

Comstock Township Library
6130 King Highway
PO Box 25
Comstock, Michigan 49041

269-345-0136
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