by Joseph Kenny | 02/22/09

A sheriff in Twin Falls County is getting his own bailout from local taxpayers this month after he unwittingly ran up over $20,000 in credit card debt. While this might seem somewhat outlandish, there's an interesting story behind it, and one that every borrower should be aware of. The strange affair all began when the sheriff moved the various credit cards used by his office into a so-called "corporate account" more than 13 years ago. The move allowed him to make a single monthly payment on the accounts, a type of debt consolidation that many individuals across the country are increasingly being drawn to.

What the sheriff, Wayne Tousley, didn't realize, however, was that the deal brokered by Bank of America had a rather large string attached: many types of charges associated with the corporate account, such as service charges, were documented separately.

As a result, the sheriff and his office continued to pay on the account for more than a decade, not realizing that all the while their unpaid service charges were racking up a gargantuan amount of debt, one that would soon come calling as a result of banking's crackdown on borrowers in the light of recent economic difficulties.

Working with lawyers, the sheriff and his office managed to reduce the liability of the debt to around $10,000, a sum that they all decided to sign off on when offered by the bank. However, the sheriff won't be held liable himself; instead, county taxpayers will have to pay off the debt, which is being considered a function of the office rather than a personal mistake on the sheriff's behalf.

While this is a somewhat humorous story in its own right, one can take away from it a valuable lesson. When you engage in debt consolidation practices, always be sure of ALL the charges involved, so that you are never taken unawares by hidden issues like the sheriff of Twin Falls County.