RE: Collection Costs...

From: Karen Reddick (kreddick@ncmstl.com)
Date: Tue Dec 16 2003 - 14:57:27 EST

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    That's the way to do it. The safest and easiest way to make sure this
    information is covered is in the initial admissions process. According to
    the FDCPA Laws which states that you can not add collection cost unless it
    is expressly authorized by the agreement creating the debt or permitted by
    state law. So it depends on which state you are in. I have attached the
    Fastfax from ACA outlining these laws in each state if anyone is interested.

    Happy Holidays!

    Karen Reddick
    National Credit Management
    kreddick@ncmstl.com
    800-627-2300, ext 229

    PS- Jeanne I would be interested in a copy of your enrollment agreement to
    share with my clients.

    -----Original Message-----
    From: Strickler, Jeanne [mailto:jstrickl@goucher.edu]
    Sent: Tuesday, December 16, 2003 9:25 AM
    To: Jon Walsh; bursar-l@virginia.edu
    Subject: RE: Collection Costs...

    We have a clause in the Enrollment Agreement that specifies that the student
    and billing party signing this agreement are liable for any collection costs
    incurred in the collection of unpaid tuition account balances. This signed
    agreement must be received by our Admissions Office as part of their
    acceptance to the college.

    This has been in effect at our school for many years and we have never had
    problems with passing on collection costs to delinquent students. Our
    collection agency always asks for a copy of this agreement when we send
    overdue accounts to them.

    I would be happy to send a copy of the Enrollment Agreement to anyone who
    would be interested.

    Happy Holidays fellow Bursars!

    Jeanne Strickler
    Bursar
    Goucher College
    1021 Dulaney Valley Rd.
    Baltimore, MD 21204
    (410) 337-6421
    Fax (410) 337-6504
    jstrickl@goucher.edu

    -----Original Message-----
    From: Jon Walsh [mailto:jon.walsh@saintleo.edu]
    Sent: Tuesday, December 16, 2003 7:43 AM
    To: bursar-l@virginia.edu
    Subject: Collection Costs...

    Gang,

    I am interested in hearing where other schools place specific language to
    students and parents, relative to the possibility of having to pay
    collection costs on any unpaid balances. Other than an institutionally
    specific promissory note, has anyone out there come up with a "creative"
    method to get students to sign a document accepting responsibility for
    collection costs on unpaid student account balances? This might just be an
    urban legend, but a few years ago I heard that some schools had a system in
    place, where students would sign a tuition payment worksheet each semester,
    and this worksheet somehow incorporated the collection cost language that I
    am referring too.

    I would welcome all thoughts and ideas on this topic...

    Thank you for your assistance and happy holidays!

    Sincerely,

    Jon A. Walsh, MSA
    Bursar/Director of Student Financial Services
    Saint Leo University
    PO Box 6665, MC 2097
    Saint Leo, FL 33574-6665
    (352) 588-8896
    jon.walsh@saintleo.edu




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