Fwd: Re: FW: settlement vs. payment in full

From: Philomena Wilson (piw494@northwestern.edu)
Date: Fri Jan 03 2003 - 14:26:28 EST

  • Next message: Cynthia W. Wells: "Settlements w/ write off's"

    Suzanne,

    I am not sure what is legal here or not. However, when I served on the
    Board of a credit union, we made it a rule that if you filed for
    bankruptcy, and a loan from the Credit Union was written off, you were no
    longer eligible for any other loans from the Credit Union even if you
    continue as a member. We did put in a clause that specified that if the
    member made good on the written off loan, then he/she would again be
    eligible to borrow. The Credit Union regulators never found a problem with
    that.

    Philomena

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    >Date: Fri, 03 Jan 2003 13:34:30 -0500
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    >To: bursar-l@virginia.edu
    >From: Hunt Compton <hcompto@linfield.edu>
    >Subject: Re: FW: settlement vs. payment in full
    >
    >Suzanne:
    >
    >When we opt to settle for a lesser amount, or, quote a payoff in writing
    >lesser than the actual payoff, we feel obligated to stick with the
    >settlement/payoff amount. It?s the ethical thing to do.
    >
    >We try to mark our records accordingly so that in these cases we will not
    >withhold a transcript or deny future enrollment.
    >
    >In cases where prior payment history (negative) is evident, we have
    >required payment in advance or other satisfactory requirements be met
    >simply because of past history. It?s the business thing to do.
    >
    >Hunt
    >
    >
    >--On Friday, January 3, 2003 8:57 AM -0500 "Dominick, Suzanne"
    ><dominick@setonhill.edu> wrote:
    >
    >>One other thing that I forgot to mention - can we require the student to
    >>pay the difference between the settlement that we accepted, and the
    >>actual balance that was due? (In addition to paying up front for the new
    >>balance that would be due for the current semester.)
    >>
    >> > -----Original Message-----
    >> > From: Dominick, Suzanne
    >> > Sent: Friday, January 03, 2003 8:46 AM
    >> > To: Bursar C/O Nacubo (E-mail)
    >> > Subject: settlement vs. payment in full
    >> >
    >> > We have had some students in collection offer a settlement to the
    >>agency, vs. a payment in full. From what I understand, once we accept
    >>the settlement in full, we have to remove all "holds" and we cannot
    >>withhold transcripts or diplomas. >
    >> > However, does anyone know whether or not we are obligated to accept a
    >>student back if he or she wants to re-enroll? Some suggestions have been
    >>to let the student re-enroll if and only if the student pays the entire
    >>balance in full up front, since we would consider the student a "high
    >>financial risk". But is this legal? >
    >> > Any information or input would be appreciated. Thanks.
    >> >
    >> > Suzanne Dominick
    >> > Accounts Receivable Supervisor
    >> > Seton Hill University
    >> > Greensburg, PA 15601
    >> > dominick@setonhill.edu
    >> > Ph: 724-830-4635 Fax: 724-830-1292
    >> >
    >
    >
    >
    >Hunt M. Compton Phone 503-883-2455
    >Staff Accountant Fax 503-883-2630
    >Linfield College email hcompto@linfield.edu
    >900 SE Baker WWW: http://www.linfield.edu/accounting/index.html
    >McMinnville, OR 97128
    >

    Philomena Wilson
    Student Accounts, Chicago
    Northwestern University
    (312)503-8122

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