Re: Receivable Collections and Marking-up

From: Barry Greenberg (bgreenb@siue.edu)
Date: Tue Jul 24 2001 - 17:59:18 EDT

mark,

responses in caps. below.

barry greenberg
siu edwardsville

Mark Alan Madsen wrote:

> BYU is reviewing some of its policies and procedures related to the
> collection of receivables. We are interested in knowing how other
> institutions respond to the following questions.
>
> 1. For receivables assigned to outside collection agencies, does your
> institution mark-up the receivable amount to cover the costs of the
> collection agency?
>

YES.

>
> 2. If you do mark-up your accounts, what is your mark-up and method for
> determining your mark-up?
>

THE MARK-UP VARIES BY THE COLLECTION AGENCY WE USE. THE METHOD IS A SIMPLE %
MARKUP; NOT A FEE-ON-FEE METHOD.

>
> 3. Is your mark-up intended to cover just the collection agency's fees?
>

YES.

>
> 4. How many collection agencies do you use?
>

3

>
> 5. If you use collection agencies that charge different collection rates,
> do you apply a standard mark-up for all receivables assigned, or a specific
> mark-up based upon the agency rate to which it is assigned?
>

SEE QUESTION 2.

>
> 6. If you use a standard mark-up, how do you treat payments received in
> excess of the receivable amount?
>

N/A.

>
> We would be happy to summarize our findings and distribute the results to
> those who have an interest or post them to the list. Thank you in advance
> for your responses.
>
> Mark A. Madsen
> Assistant Treasurer
> Student Financial Services
> Brigham Young University
> mark_madsen@byu.edu
> 801.378.7809 Voice
> 801.378.3588 Fax 

--
Barry Greenberg
Acting Bursar
P.O. Box 1042
Office of the Bursar
Southern Illinois University Edwardsville
Edwardsville, IL  62026

e-mail             bgreenb@siue.edu
phone             (618) 650-3138
fax                 (618) 650-2971
Bursar Home page   www.siue.edu/BURSAR
SIUE Home page     www.siue.edu

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