Debtors Policy

[karen]

We are currently having a look at redrafting our Debtors Policy, since we would like to more efficiently deal with overdue debtors. Especially when debtors run into financial difficulty.

I would like to know how other schools handle the situation and what process they follow before it gets to the stage where the children have to be taken out of school and the accounts handed over. eg. 30 days, 60 days etc.

Major problems occur with accounts where the children are boarders, as these accounts tend to escalate at a rate of knots. Unfortunately it is also more and more difficult, costly and time consuming to try and recover these funds.

Suggestions are most welcome! I am very interested in finding out how other bursars handle this situation.

Karen
Wembley College

[clairanne]

Hi Karen

We have a system of sending out a series of three letters - first a gentle reminder within 14 days after fees due, then a more strongly worded letter stating the consequences of not paying after another 14 days. Our debtors lady is also continually phoning or e-mailing. The third letter is a final demand on our debt collectors letterhead threatening hand over. With this we add a suspension letter and these are sent at the end of term.
We do get parents to sign an AOD based on their specific circumstances and then they will not be handed over unless they do not adhere to the agreed terms.
Boarders are a problem esp if foreign and we have lost money here. Our foreign boarders have to pay an extra term's boarding fees as a deposit so that we have some cushion for bad debt.
Our bad debt is quite small as we are fairly hard.

Hope this helps
Clairanne

[karen]

Dear Clairanne,
Thank you for your post. I've also been brousing through other Admission policies online to compare. You are quite right - you have to be hard to keep bad debt under control.
Will definitely keep your system in mind.

Regards,
Karen

[bridget]

Dear Karen
I'm sure most schools have varying Debtors Policies (required by Umalusi anyway). However, when it comes to getting help with bad debts, the steps to take (especially legally speaking) and all the protocals, you can't do better than Legal City. They are a fountain of information and assistance.
Regards
Bridget Philips