Libraries Check Out Collection Agencies to Boost Returns

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 overdue materials. But strong-arm tactics are out.

“We’re not looking to scare people,” said Mark Willis, spokesman for the Dayton Metro Library. “We want these people to continue being our customers.”

Michael Gorman, president-elect of the American Library Assn., says that more and more libraries are using collection agencies. Many libraries are facing tight budgets and at the same time increased demand, with patrons wanting DVDs, Internet access and other services.

A sluggish economy has reduced tax revenues, leading local and state governments to cut support for libraries. City governments often are under pressure to maintain funding for what residents believe are essential services, such as road repair, police and fire services.

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

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

“Our budget is too tight these days to let things sit and sit like that,” he said. “Often what [patrons] take are the most popular items, and we don’t want to have to buy them again.”

The library has hired Unique Management Services Inc., based in Jeffersonville, Ind., which specializes in helping libraries get patrons to return overdue materials and pay fines. The company was started 10 years ago when two businessmen with debt-collection experience began helping libraries recover materials. Its clients number 650 libraries in the United States and Canada, up from 250 six years ago.

“Our mission is to stop the bleeding,” said Kenes Bowling, manager of customer development.

The library in Bay City, Mich., is considering either contracting with Unique Management or taking a tougher approach -- urging enforcement of an ordinance that could result in the arrest of the worst offenders and sentences of up to 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, the library’s system director. One patron has 70 overdue items with a value of $1,190.

“It’s a big drain,” Paffhausen said. “It might seem draconian to some people, but it’s truly not. It’s part of being responsible to the taxpayer.”

Libraries demand that Unique Management be nice in trying to recover the materials so as not to alienate patrons. About half the 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 don’t respond to gentle persuasion are reported to credit agencies.

That doesn’t happen often. Bowling said about 70% of the patrons contacted will return materials and/or pay fines.

Ann Ingoldsby, 56, of Enon mainly borrows books on tape from the library and often returns them late. She said she wouldn’t resent getting a call from a collection agency to return overdue materials.

“I’d do it right away,” she said. “If it’s late, it’s late.”

As a taxpayer, she supports the increased vigilance since libraries are carrying more expensive items such as DVDs.

Unique Management charges libraries an average of $8.95 per account. 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 materials and fines.

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

“We have noticed a decrease in the number of fines folks are paying so we know we are getting more material back quicker,” said Izabela Cieszynski, director of library and information services.

Ron Wukeson, 48, who lives next to a Dayton Metro branch, said he has no problem with libraries turning to collection agencies, as long as they first give patrons a chance to make good on their own.

“Libraries are such a wonderful bargain in the first place,” said Wukeson, who said his library fines have never totaled more than $1. “I don’t think that should be abused.”

Despite the tougher talk, it’s hard to hide the librarians’ soft side.

“We’re not going after grandma who left a book under the front seat of the car,” Paffhausen said.