December 28, 2012
California Debt Collection May Befall Schools
It seems like a hefty amount of debt has fallen on the shoulders of California school districts. They all require copious amounts of money to be paid off and such debt has only hindered those working within education. With an uncertain financing method put into effect, the risk was not one that had paid off the way I’m sure districts planned on. Perhaps California debt collection has to be employed in order to do business with the districts in debt.
An article in the Los Angeles Times spoke about these districts utilizing capital appreciation bonds. These bonds, essentially, put payments into the future and while this may seem ideal in the long term, multiple times of that amount are owed. Property values went down and it has become harder for schools to invest in better classrooms, auditoriums, and the like. The financial downturn seen here is staggering and it’s one that’s not only impacted teachers but students as well.
It’s easy to see how these bonds have raised the attention of people on a grand scale. The article stated that only one state has actually banned them, though, which is a travesty seen by many. One such person is Bill Lockyer, who is the California Treasurer, and he was less than supportive on the matter. In fact, he was quoted as saying, “The school boards and staffs that approved of these bonds should be voted out of office and fired.”
It’s quite stunning that a California debt collection company hasn’t been employed to take care of the problem. Yes, it’s not against the law everywhere to use these bonds but that doesn’t mean that districts should get away without paying. Companies like Rapid Recovery work in order to clear up such an issue and they do it well. Perhaps if such an organization would find its way into the situation, the financial strain would go away.
While schools are proficient in teaching children and young adults, I don’t feel as though they have the greatest capacity in clearing up financial issues. What these districts have done, though, is ignore countless debts that eventually have to be paid off. Not every collection company is going to target them with disdain, either, since the industry itself is still reputable despite what people may assume otherwise. Unfortunately for schools, that doesn’t mean that such companies will stand down in the face of a job.
Filed under Debt Consolidation by Rob Sutter