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Delinquent funeral homes to face penalties from city of Danville

July 15, 2008|BOBBIE CURD

Danville will charge a 10 percent penalty when a funeral home does not pay for burial services at city cemeteries within 30 days, but a date for the policy to go into effect has not been set. Commissioners said time is needed to communicate the plan with the funeral homes and allow them to clear their balances.

The same type of order was offered in a motion in 1990, but died for lack of a second.

"Some of these delinquencies are - well, we're not a bank, let's just put it that way," Commissioner Terry Crowley said.

Commissioner Gail Louis said she thinks the homes have to deal with insurance companies, and noted how slowly they are known to pay. She said she realizes funerals "are quite expensive now."

"I don't pretend to know the business of each and every funeral home, but most of them collect right away and begin finance charges as high as 15 percent on unpaid bills," Stansbury said. He said he had a lady come to him very upset to find out the funeral home had not paid the bill for a family member's funeral because she had to borrow the money from the bank to pay the funeral home.

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"She went to the bank to get financing because she didn't want to pay 15 percent to the funeral home," Stansbury. The last time he dealt with a funeral home, Stansbury said, the fees were due at the time of service.

After some discussion about how long to wait to enact the order, City Attorney Ed Hays told the commission he would recommend deferring the action until the next meeting so funeral homes would have an opportunity to discuss the move before its passage.

"Staff has no problem with this," Stansbury said. The commission discussed notifying the homes by mail or on the next bill, but City Clerk Donna Peek said it would be easier to contact each home.

"Well, I understand that this needs to be done," Louis said.

"There is no issue other than bills not being paid," Stansbury said. "We left the date blank on the order so it can be established when it will happen." He said the city can let the funeral homes know that the item will be on the agenda for passage.

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