Released every month our debt collection blog contains news, stories and tips to keep you informed.
Three libraries in New Zealand, Wellington, Hutt City and Upper Hutt, are reportedly chasing over 2,400 people for over $1m (NZD) in lost and overdue charges. The libraries have referred there membership to debt collection agencies and credit reporting agencies in an attempt to collect the amounts outstanding.
In one instance, a 12 year old girl was threatened by a debt collection agency over a late return of books and a movie.
There has been social criticism concerning this practice, with those people who can not afford to pay the fees are most likely the people who cannot afford to purchase the books and need to use the library the most.
The important point we can take from this, is that upon referral of accounts for collection, both the creditors and collection agencies should have checks and balances in place confirming that the debtors are over a legal age. A simple cross check of a date of birth is necessary to avoid the instance stated above.
This article was sourced from stuff.co.nz on 21 Jan 2015.