Collection of Past Due Receivables
Collection of Past Due Receivables
- Collection of Past Due Receivables
- General Collections Information
- Sample Dunning Messages and Credit Reporting
- Late Fees and Finance Charges
- Student and Non-Students Customers' Collection Procedures
Any amount owed to the University including, but not limited to, tuition, fees, room, board, loans, notes receivable, and amounts due for goods and services provided is considered a receivable to the University. A receivable becomes past due if payment is not received by the payment due date.
For past due student accounts, the primary collection tool is the placement of a "HOLD" by the Office of the University Bursar on a student's record. This "HOLD" restricts certain student activities such as the ability to add or drop classes, receive grade transcripts, and registration for future academic terms. Once established, the "HOLD" remains in place until the debt is paid in full. If the debt is for tuition, comprehensive fees, room or dining charges, a student's classes may be purged. Students in danger of this are warned immediately following the last day to add classes for the semester that any balance remaining from their semester tuition bill must be paid or they will be dropped from all class rolls. Students so purged must make payment in full, enroll in the Budget Tuition Plan, or arrange for financial aid before their classes will be reinstated. Students will be required to contact their academic dean's office to request classes be reinstated for the semester after payment has been made and the financial purge "hold" has been removed from their record by the Bursar's Office. Students enrolling in either of the summer terms must withdraw if not planning to attend; otherwise charges will be due and the student may receive failing grades for the courses.
Students who have applied for graduation and have a balance on their student account may have their diploma held until their account is paid. Once a student is no longer enrolled, the collection procedures utilized for other "non-student" receivables are implemented. On each month's statement, a dunning message, related to the number of days past due alerts the customer to the next collection steps which will be taken (see Dunning Messages). If payment is not forthcoming within the stated period, the account and all pertinent information are forwarded to an outside collection agency or the Office of the Attorney General, as appropriate, for collection. In the event the collection agency is unable to collect, the account is reported to a national credit bureau, thus affecting the debtor's credit rating.
In addition to the above measures, the University also lists the account with the Virginia Department of Taxation for set-off debt collection procedures. This means that any refund from the state due the debtor will be reduced by the amount of the receivable owed by the debtor.
Individuals who do not pay all fees and charges owed are responsible, in the event of their default or the return of a check for payment of said fees and charges, to pay a penalty fee, to pay interest at the highest rate allowed by law, and for all reasonable administrative costs, collections costs, and attorney's fees incurred in the collection of funds due the University.
Addresses must be kept current in the Student Records System in order for the University to send statements in a timely manner. Students, faculty and staff can change their address on the Hokie SPA. Non-receipt of statements is not a valid defense for non-payment; it is the responsibility of the individual who has incurred the debt to see that the debt is discharged.
Virginia Tech is in full compliance with the Virginia Debt Collection Act and all regulations promulgated by the State of Virginia Department of Accounts and the Office of the Attorney General.
A receivable becomes past due if payment is not received by the initial payment due date.
At ninety days past due, the receivable becomes delinquent. The following procedures will describe the actions that are to be taken for collection of receivables:
A late fee payment of 10% of the past due balance not to exceed $125 per term is assessed to currently enrolled students only who do not pay institutional charges by the due date.
A finance charge of 0.58% is assessed per month to non-students. Students will also be assessed a finance charge of 0.58% per month for unpaid prior term charges.
In order to hold individuals, who do not pay all fees and charges owed, responsible to pay costs incurred in the collection of the debt, language must be included on the contract the university has with the customer that gives the customer notice of this fact. This language should include the following:
"In the event of default or the return of a check for payment of said fees and charges, the debtor will be subject to pay a penalty fee, to pay interest at the highest rate allowed by law, and to pay for all reasonable administrative costs, collections costs, and attorney's fees incurred in the collection of funds due the University.
Addresses must be kept current in the university's database in order for the University to send statements in a timely manner. Students, faculty and staff can change their address on the Hokie SPA; others must be changed through the Financial Database Group. Non-receipt of statements is not a valid defense for non-payment; it is the responsibility of the individual who has incurred the debt to see that the debt is discharged ."
Any amount owed to the University including, but not limited to, tuition, fees, room, board, loans, notes receivable, and amounts due for goods and services provided is considered a receivable to the University. A receivable becomes past due if payment is not received by the payment due date. At ninety days past due, the receivable becomes delinquent.
For currently enrolled students, the primary collection tool is the placement of a "HOLD" by the Office of the University Bursar on a student's record. This "HOLD" restricts certain student activities such as the ability to add or drop classes, receive grade transcripts, and registration for future academic terms. Once established, the "HOLD" remains in place until the debt is paid in full. Once a student is no longer enrolled, the collection procedures utilized for other "non-student" receivables are implemented. In addition, if you have applied for graduation and have a balance on your student account, your diploma may be held.
If the total due on the account is less than $10, the charge is typically not sent to collection. However, based on professional staff judgment, any account may be sent to collection, with the approval from a collection supervisor.
| Current Plus Other Charges in Collections | You have older charges that are past due and are not reflected on this statement. Payments received are applied to the oldest charges first. If you have questions regarding your account, please contact the Office of the University Bursar. |
|---|---|
| 1 - 30 Days Past Due Plus Other Charges in Collections |
(You have older charges that may be in collections or debt set-off and are not reflected on this statement. Payments received are applied to the oldest charges first. If you have questions regarding your account, please contact the Office of the University Bursar.) |
| 61 - 90 Days Past Due Plus Other Charges in Collections | Our records indicate that your account is now seriously past due and you have not responded to our requests for payment.
(You have older charges that are in collections or debt set-off and are not reflected on this statement. Payments received are applied to the oldest charges first. If you have questions regarding your account, please contact the Office of the University Bursar.)
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A late payment fees of 10% of the past due balance (not to exceed $125 per term) will be assessed to students who have not paid or do not have sufficient financial aid or other credit to cover institutional charges
If a student pre-registers for fall classes in March for the following summer and fall, the student will be billed for these charges in May and July, respectively. If the student does not pay by the payment deadline on their statement, a late fee will be assessed. If the student does not add classes until the drop/add period for first summer and then does not pay by the specified payment deadline, a late fee will be charged.
Finance Charges will be assessed to all accounts with a past due balance. Students, however, will not be assessed finance charges unless there is a past due balance at the end of the term.
Finance Charges will be charged monthly at the rate of .583% per month (7% APY) on the past due billed balance on non-student accounts. Finance Charges will be assessed to students on any prior term past due charges. For example, a student who has a past due balance at the end of Spring semester will incur a finance charge of .583% per month on these unpaid charges after the end of Spring term.
- For currently enrolled students, the primary collection tool is the placement of a "HOLD" by the Office of the University Bursar on a student's record. This "HOLD" restricts certain student activities such as the ability to add or drop classes, receive transcripts, and register for future academic terms. Once established, the "HOLD" remains in place until the debt is paid in full. The "hold" can be removed before the debt is paid, if an OUB employee has adequate reason to do so. Once a student is no longer enrolled, the collection procedures utilized for other "non-student" receivables are implemented. The acceptable reasons for removing the hold are:
- Payment
- Professional judgment
- Request from upper management
- OUB management approval
Students who are not enrolled in Summer school but were enrolled the prior semester are not sent to a collection agency in the summer. OUB waits until it can be determined that the student will not attend classes in the Fall (after the last day to add) before sending to the collection agency. Students do not receive dunning messages other than to be warned a hold will be put on their accounts.
On each month's statement, a dunning message, related to the number of days past due, is included alerting the customer to the next collection steps that will be taken. (See Dunning Messages below) If payment is not forthcoming within the stated period, the account and all pertinent information are forwarded to an outside collections agency or the State Attorney General's Office, as appropriate, for collection. While the account is with the collection agency, it is also reported to a Credit Bureau, thus affecting the debtor's credit rating. The account is also listed with the Virginia Department of Taxation Debt Set-Off program. In the event the collection agency is unable to collect, the account is removed from the national credit bureau and returned to the university.
Any payment made to the debtor which is processed through the state treasurer's office, can be held and sent to the state agency holding the debt up to the amount owed to the agency.