diff --git a/C4/Reserves.pm b/C4/Reserves.pm
index d2af1c5ac6..44a82bd3b3 100644
--- a/C4/Reserves.pm
+++ b/C4/Reserves.pm
@@ -861,6 +861,7 @@ Cancels all reserves with an expiration date from before today.
 
 sub CancelExpiredReserves {
 
+    # Cancel reserves that have passed their expiration date.
     my $dbh = C4::Context->dbh;
     my $sth = $dbh->prepare( "
         SELECT * FROM reserves WHERE DATE(expirationdate) < DATE( CURDATE() ) 
@@ -872,6 +873,24 @@ sub CancelExpiredReserves {
         CancelReserve( $res->{'biblionumber'}, '', $res->{'borrowernumber'} );
     }
   
+    # Cancel reserves that have been waiting too long
+    if ( C4::Context->preference("ExpireReservesMaxPickUpDelay") ) {
+        my $max_pickup_delay = C4::Context->preference("ReservesMaxPickUpDelay");
+        my $charge = C4::Context->preference("ExpireReservesMaxPickUpDelayCharge");
+
+        my $query = "SELECT * FROM reserves WHERE TO_DAYS( NOW() ) - TO_DAYS( waitingdate ) > ? AND found = 'W' AND priority = 0";
+        $sth = $dbh->prepare( $query );
+        $sth->execute( $max_pickup_delay );
+
+        while (my $res = $sth->fetchrow_hashref ) {
+            if ( $charge ) {
+                manualinvoice($res->{'borrowernumber'}, $res->{'itemnumber'}, 'Hold waiting too long', 'F', $charge);
+            }
+
+            CancelReserve( $res->{'biblionumber'}, '', $res->{'borrowernumber'} );
+        }
+    }
+
 }
 
 =head2 CancelReserve
@@ -1138,13 +1157,9 @@ sub ModReserveStatus {
 
     #first : check if we have a reservation for this item .
     my ($itemnumber, $newstatus) = @_;
-    my $dbh          = C4::Context->dbh;
-    my $query = " UPDATE reserves
-    SET    found=?,waitingdate = now()
-    WHERE itemnumber=?
-      AND found IS NULL
-      AND priority = 0
-    ";
+    my $dbh = C4::Context->dbh;
+
+    my $query = "UPDATE reserves SET found = ?, waitingdate = NOW() WHERE itemnumber = ? AND found IS NULL AND priority = 0";
     my $sth_set = $dbh->prepare($query);
     $sth_set->execute( $newstatus, $itemnumber );
 
@@ -1197,15 +1212,15 @@ sub ModReserveAffect {
     }
     else {
     # affect the reserve to Waiting as well.
-    $query = "
-        UPDATE reserves
-        SET     priority = 0,
-                found = 'W',
-                waitingdate=now(),
-                itemnumber = ?
-        WHERE borrowernumber = ?
-          AND biblionumber = ?
-    ";
+        $query = "
+            UPDATE reserves
+            SET     priority = 0,
+                    found = 'W',
+                    waitingdate = NOW(),
+                    itemnumber = ?
+            WHERE borrowernumber = ?
+              AND biblionumber = ?
+        ";
     }
     $sth = $dbh->prepare($query);
     $sth->execute( $itemnumber, $borrowernumber,$biblionumber);
@@ -1908,7 +1923,6 @@ sub MergeHolds {
     }
 }
 
-
 =head2 ReserveSlip
 
   ReserveSlip($branchcode, $borrowernumber, $biblionumber)
diff --git a/installer/data/mysql/sysprefs.sql b/installer/data/mysql/sysprefs.sql
index 47b2483575..d16ff81241 100644
--- a/installer/data/mysql/sysprefs.sql
+++ b/installer/data/mysql/sysprefs.sql
@@ -346,3 +346,5 @@ INSERT INTO systempreferences (variable,value,explanation,options,type) VALUES('
 INSERT INTO systempreferences (variable,value,explanation,options,type) VALUES('LinkerRelink',1,'If ON the authority linker will relink headings that have previously been linked every time it runs.',NULL,'YesNo');
 INSERT INTO systempreferences (variable,value,explanation,options,type) VALUES('LinkerKeepStale',0,'If ON the authority linker will keep existing authority links for headings where it is unable to find a match.',NULL,'YesNo');
 INSERT INTO systempreferences (variable,value,explanation,options,type) VALUES('CatalogModuleRelink',0,'If OFF the linker will never replace the authids that are set in the cataloging module.',NULL,'YesNo');
+INSERT INTO systempreferences (variable,value,options,explanation,type) VALUES ('ExpireReservesMaxPickUpDelay',  '0',  '',  'Enabling this allows holds to expire automatically if they have not been picked by within the time period specified in ReservesMaxPickUpDelay',  'YesNo');
+INSERT INTO systempreferences` (variable,value,options,explanation,type) VALUES ('ExpireReservesMaxPickUpDelayCharge', '0', NULL , 'If ExpireReservesMaxPickUpDelay is enabled, and this field has a non-zero value, than a borrower whose waiting hold has expired will be charged this amount.',  'free')
diff --git a/installer/data/mysql/updatedatabase.pl b/installer/data/mysql/updatedatabase.pl
index 06eded1300..2a7a1ac7d1 100755
--- a/installer/data/mysql/updatedatabase.pl
+++ b/installer/data/mysql/updatedatabase.pl
@@ -4884,6 +4884,14 @@ Date due: <<issues.date_due>><br />
     SetVersion($DBversion);
 }
 
+$DBversion = "3.07.00.024";
+if ( C4::Context->preference("Version") < TransformToNum($DBversion) ) {
+    $dbh->do("INSERT INTO systempreferences` (variable,value,options,explanation,type) VALUES ('ExpireReservesMaxPickUpDelayCharge', '0', NULL , 'If ExpireReservesMaxPickUpDelay is enabled, and this field has a non-zero value, than a borrower whose waiting hold has expired will be charged this amount.',  'free')");
+    $dbh->do("INSERT INTO systempreferences (variable,value,options,explanation,type) VALUES ('ExpireReservesMaxPickUpDelay', '0', '', 'Enabling this allows holds to expire automatically if they have not been picked by within the time period specified in ReservesMaxPickUpDelay', 'YesNo')");
+    print "Upgrade to $DBversion done (Added system preference ExpireReservesMaxPickUpDelay, system preference ExpireReservesMaxPickUpDelayCharge, add reseves.charge_if_expired)\n";
+    SetVersion($DBversion);
+}
+
 =head1 FUNCTIONS
 
 =head2 DropAllForeignKeys($table)
diff --git a/koha-tmpl/intranet-tmpl/prog/en/modules/admin/preferences/circulation.pref b/koha-tmpl/intranet-tmpl/prog/en/modules/admin/preferences/circulation.pref
index b020a9235a..64fe299d41 100644
--- a/koha-tmpl/intranet-tmpl/prog/en/modules/admin/preferences/circulation.pref
+++ b/koha-tmpl/intranet-tmpl/prog/en/modules/admin/preferences/circulation.pref
@@ -283,6 +283,17 @@ Circulation:
             - pref: ReservesMaxPickUpDelay
               class: integer
             - days.
+        -
+            - pref: ExpireReservesMaxPickUpDelay
+              choices:
+                  yes: Allow
+                  no: "Don't allow"
+            - "holds to expire automatically if they have not been picked by within the time period specified in ReservesMaxPickUpDelay"
+        -
+            - If using ExpireReservesMaxPickUpDelay, charge a borrower who allows his or her waiting hold to expire a fee of
+            - pref: ExpireReservesMaxPickUpDelayCharge
+              class: currency
+            - [% local_currency %].
         -
             - Satisfy holds from the libraries
             - pref: StaticHoldsQueueWeight