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Greg Berky Billing Specialist gtb2@psu.edu (814) 867-2450 . Unique or how I learned to stop worrying and love collection agencies. History. Uncollected Library bills had reached $400,000. The University Comptroller required a more effective collection system.
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Unique or how I learned to stop worrying and love collection agencies.
History Uncollected Library bills had reached $400,000. The University Comptroller required a more effective collection system. The majority of unpaid bills were from recently graduated students and resident borrowers.
What brought about the problem? Under the old procedures, we would send a bill and block the patron’s library account once the outstanding bill reached a certain level. We found that for some patron’s, more incentive to pay the bill was needed.
Students A way to collect bills from current students had been in place since the 1980’s. -The bills were transferred to the University Bursar. This blocked the student from registering for classes or obtaining transcripts.
Faculty and Staff We have always insisted that our faculty and staff pay their bills. Under the new system, we instituted wage garnishment. This did not result in much additional collection. It just automated the process. It also helped us more quickly identify faculty and staff that had been terminated.
Residents and newly graduated students Resident borrowers and recent graduates were responsible for the majority of the unpaid bills. -Residents have access to public libraries, public ILL, Access PA ect. Obtaining needed material was possible. -Barring recently graduated student from registering for classes did not provide the needed incentives.
The solution We decided to use a collection agency. The agency we selected was Unique National Collections. -Unique represents only libraries. -They use a trademarked “gentle nudge” approach.
Since Unique works only with Libraries they soon recognized the need to work with “Library automation vendors.” This includes SirsiDynix.
How it works The patrons we mainly use the collection agency for are residents and former students. To identify former students we get a report from the Registrar – what we call the “Student Master Load”- any student who is no longer registered has their workflow’s profile automatically changed to unenrolled.
Before sending accounts to collection, we give these patrons time to pay their bills or return library material. -Any bill for these patrons that is $25.00 or more that remains unpaid for 60 days is sent to collections.
The bills remain payable to the Library. Unique does not collect bills. -They do not receive a percentage. -They receive a flat fee for every account turned over to them. -The logic of this is that return of material is the focus of their efforts.
As with any collections agencies, Unique sends letters and makes phone calls. The language used is often more gentle but at the same time the consequences of non- payment are made clear. If the latest address we provided is not correct, Unique will use several “tricks” to find a correct address.
If lost library material is returned, workflows automatically cancels the lost fee. The patron is still responsible for a $25.00 processing fee for each item, any overdue fees, and a $9.00 referral fee we charge on any account sent to Unique.
We can suspend the process permanently or for a period of time if the patron contests the fee or if they need more time to deal with the situation.
After four months with Unique, the patron is credit reported. -This is six months since they were billed or seven months since Library material became overdue.
For any account that is settled after the patron is credit reported. -Workflows automatically notifies Unique within 3 days. -Unique notifies the credit reporting agencies. -On the patron’s credit report our bill marked as paid and this remains on the credit report for one year.
The results We tried a final invoicing of all bills in June of 2003 with a warning that the bills could be sent to collections. Then in August of 2003, we sent 1,559 bills to Unique. -Bills dated from 1995-present -Any bill over $24.99
From August 2003 – September 2007 -Submitted $529,501 -Cash Recovery of $147,913 -Material Recovery of $71,033 -Versus invoice of $29,437 -Return on investment of 7:1
2007 totals indicate results remain strong. -Submitted $65,603 -Cash recovery of $24,112 -Material recovery of $16,954 -Versus invoices of $3,132 -Return on investment 13:1
Impact on staff -During launch of the program Lending staff and Business Office staff fielded quite a few questions. -These have been reduced to a few a week. Many wondering how to pay the bills.
Patrons formally contesting the fees are currently at the rate of about one a month. We have set a high bar for expunging a patron’s credit report. These are extremely rare.
Greg Berky Billing Specialist gtb2@psu.edu (814) 867-2450
