1707 Use of Collection Agencies

Document purpose

The assistance of collection agencies and attorneys may be necessary to ensure repayment of amounts due the University.

effective

January 1989

revised

May 2022

Reviewed

May 2022

Responsible Office

Student Registration & Financial Services

Approval

Student Registration & Financial Services

The Policy

  1. The authority to contract with collection agencies / attorneys for securing payments for delinquent student loans and student receivables is the responsibility of Student Registration & Financial Services. The Office of the Treasurer is responsible for all other receivables.

  2. Those offices, in consultation with the Office of the General Counsel, may engage legal services to assist in the collection of delinquent loans/receivables.

  3. Tuition receivable accounts in excess of $500 are transferred to ECSI’s Recovery Select platform.  An administrative fee of 5% of the balance is added at transfer.  Students have the option of establishing payment plans from 0 – 48 months (depending on balance due) within the Recovery Select system.

    All payments collected automatically post to the Pennant AR system and are recorded as collection revenue.

  4. Former students who do not initiate a payment plan within 120 days are assigned to collection agencies: Williams & Fudge, RMS, CRS or collection attorney Watson & Allard (balances greater than $10,000).

    Account placements rotate through agencies in order to successfully recover funds due to Penn.

    Collection costs are added to receivable accounts repaid via agencies and attorney.  Additional legal costs may be added for court processes, co-counsel, etc.