Thousands and thousands lost each year to recycling fraud
Recycling is great for the earth and good for industry, as it means supplies could be used over and over again. However, those states which encourage recycling through container deposit redemptions, such as a dime for each beer bottle one turns in, are getting disciplined for their good deeds. A number of states, such as California and Michigan, are losing millions per year to recycling fraud. How many times have you expected more info on tips to getbad credit personal loans, and turned to an internet search on "payday loan consolidation?" Your search is over, all of the details you will need is at Match Financial.
Recycling causes scam to begin
There are a lot of things that could be learned from “Seinfield,” the 1990s sitcom that was really popular. In one episode, the characters took a truck of beer bottles to Michigan so they could get 10 cents per bottle instead of the offered New York rate of 5 cents, according to the LA Times.
Oddly enough, the LA Times points this out in an article about how the very same scheme is costing the state of California thousands and thousands of dollars per year. Aluminum cans, glass and plastic bottles, e.g. beverage containers, can be redeemed for five cents per at private recycling centers, larger containers for 10 cents per or more. Just like in “Seinfeld,” people are bringing in out-of-state recyclables and are getting paid for it.
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The law only provides payment for bottles, cans and so on sold in California, but a number of people have been caught driving truckloads of cans and bottles from Arizona and Nevada. That method of recycling fraud, along with deposit center claims for reimbursement for the same container many times over and other fraudulent bookkeeping, is costing the state at least $40 million per year, if not more. Some estimates put it upward of $200 million.
The whole point of the incentive is that each bottle gets a 5 or 10 cent premium in the purchase price. Then, that extra money could be redeemed for cash later assuming the person goes to the recycling center. The idea is to keep people recycling by taking their cash and giving it back upon return. The out of state cans make it really challenging.
About $1.1 billion got paid in container deposits last year in California, but the state only paid $100 million back out to get the containers back.
Getting cash for free
It seems that producers have understood how important it is to reuse old containers for some time now. In fact, according to Britishsoftdrinks.com, there were instances of buying back empty containers for reuse in the 1800s. A&R Thwaites and Co., was a business that was known for paying customers for empty bottles. A company called Schweppes was also doing the same thing.
Other states with comparable regulations have also found fraud. For instance, Michigan loses $13 million a year due to container recycle fraud, according to Mlive.com. Another one is Maine, according to Bangor Daily News. The state loses about $8 million a year in deposit fraud. Of all containers, 10 percent were redeemed from out of state. There are 11 states that have these laws.
Sources
Tags: bottle bill, container deposit, container deposit fraud, recycling fraud
Posted by richallen on Fri, 12/12/2014 - 11:59pm
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