"So if I, for example, have an unpaid library debt on a credit report, and I apply for a mortgage, usually the creditor will not extend credit unless the debt is paid," he said.
Once a library debt is paid, Mr. Bowling said, even if it has been reported to a credit bureau, it usually has "minimal to zero influence on a person's credit rating".
Actually, the money goes to the Vatican city-state, where it is put aside to pay off the library's legal debts.
Earlier this year the Office of Fair Trading wrote to universities saying that they could be breaching consumer law by refusing to award degrees to students with outstanding non-academic debts, including library fines.
Bore said the Library of Birmingham's debt repayments stood at £1m a month and the authority was undergoing profound change in the face of government funding cuts.
It would be unfair, he said, because not all libraries use a debt collector, and consumers whose libraries do not use them would have an advantage in the marketplace over people whose libraries do.
The Office of Fair Trading has written to universities warning against calling a halt to graduations because of non-academic debts, such as library fines.
But creditors do take notice if the report says the library patron has an outstanding debt or overdue materials, Mr. Bowling said.
He said part of the $500,000 was applied to a debt that the library owed to the club, and part was used to pay the library's share of the renovation.
It said some universities used such conditions to delay graduation due to such debts as parking or library fines.
