Friday, March 2, 2012

For Libraries, Many Happy Returns; Collection Agencies Help Recover Overdue Materials

Those unreturned books and videos are costing libraries a bundle,and they're not going to take it anymore.

Libraries are turning to collection agencies to recover overduematerials. But strong-arm tactics are out.

"We're not looking to scare people," said Mark Willis, spokesmanfor the Dayton Metro Library. "We want these people to continue beingour customers."

Michael Gorman, president-elect of the American LibraryAssociation, believes more and more libraries are using collectionagencies. Many libraries are facing tight budgets but also areexperiencing increased demand, with patrons wanting DVDs, Internetaccess and other services.

A sluggish economy has reduced tax revenue, leading local andstate governments to cut support for libraries. City governmentsoften are under pressure to maintain funding for what residents feelare essential services such as road repair and police and fireservices.

"All libraries are being asked to do more with less," Gorman said."I can understand a library that is really strapped -- that extra bitof income can really help."

The Dayton library, which has an annual budget of $21 million,estimates it is losing as much as $400,000 a year in materials.

"Our budget is too tight these days to let things sit and sit likethat," he said. "Often what [patrons] take are the most popularitems, and we don't want to have to buy them again."

The library has hired Unique Management Services Inc., based inJeffersonville, Ind., which specializes in helping libraries getpatrons to return overdue materials and pay fines. The company wasstarted 10 years ago when two businessmen with debt-collectionexperience began helping local libraries recover materials. Itsclients number 650 libraries in the United States and Canada, up from250 six years ago.

"Our mission is to stop the bleeding," said Kenes Bowling, managerof customer development.

The library in Bay City, Mich., is considering contracting withUnique Management or taking an even tougher approach -- urgingenforcement of an ordinance that could result in the arrest of theworst offenders and sentences of as many as 90 days in jail.

The library, which has an annual budget of $150,000, is losing$32,000 worth of materials a year, said Frederick Paffhausen, thelibrary's system director. One patron has 70 overdue items, with avalue of $1,190.

"It's a big drain," Paffhausen said. "It might seem draconian tosome people, but it's truly not. It's part of being responsible tothe taxpayer."

Libraries demand that Unique Management be nice in trying torecover the materials so as not to alienate patrons. About half ofthe company's 30 callers are seminary students.

"It's part of their ethic to be very helpful and pastoral,"Bowling said.

The company does have its limits. Patrons who do not respond togentle persuasion are reported to credit agencies.

That does not happen often. Bowling said about 70 percent of thepatrons contacted will return materials and pay fines.

Ann Ingoldsby, 56, of Enon, Ohio, mainly borrows books on tape. She often returns them late.

She said she would not resent getting a call from a collectionagency. "I'd do it right away," she said. "If it's late, it's late."

Unique Management charges libraries an average of $8.95 peraccount. Bowling said it typically cuts a library's losses in half.

Willis said the Dayton library expects to pay the company about$80,000 a year and receive at least double that in returned materialsand fines.

The library in Newport News began using the collection agency inSeptember after estimating it was losing 357 items a month.

"We have noticed a decrease in the number of fines folks arepaying, so we know we are getting more material back quicker," saidIzabela Cieszynski, director of library and information services.

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