Overdue library books? Collection agency may come calling
Posted
Nov 12 2008, 02:46 PM
by
Karen Datko
Rating:
Who would think that accumulating unpaid library fines could affect your credit score? Depending on where you live, this could happen, reports Paula at Queercents.
Libraries around the country are turning to collection agencies to gather a growing number of missing books and outstanding fines. "Collection agency activity negatively impacts your FICO score and it does so for a very long time even if you pay the outstanding balance," Paula says.
Not good, particularly as lenders are now prone to extend credit only to people with high scores.
Paula read about collection efforts by libraries in Bucks County, Pa. A Philadelphia Inquirer story says that library system is one of a large number employing a collection agency that hires seminary students to give book and fine deadbeats a "gentle nudge."
A story by Liz Pulliam Weston at MSN Money describes how cities are also using collection agencies to go after unpaid parking and traffic tickets. Those agencies, Liz writes, "typically report the unpaid amounts to the credit bureaus as part of their efforts to pressure consumers into paying the fines." She adds that moving away doesn't get you off the hook.
Using the library can save you lots of money, particularly if you've been in the habit of buying books and DVDs. Returning what you borrow doesn't need to be a hassle. Paula recommends:
-
Keeping your library books in one, very visible place.
-
Setting up an e-mail reminder.
-
Designating a regular library day.
