AC 19/09-10
Credit Control and Debt Management Policy
FINAL DRAFT
28/10/2013
Policy SchedulePolicy title / Credit Control and Debt Management Policy
Policy owner / Finance Directorate
Policy lead contact / Keith Waddingham
Committee approving
Date of approval
Date of implementation
Version no. / 1
Related Guidelines, Procedures, Codes of Practice etc. / Financial Regulations
Review interval / Annually
Contents
Introduction
1.Purpose of Policy
2.Standard Terms and Conditions – Tuition Fees Financial Requirement for All Students
3.Payment of Fees – Home/EU Students
3.1Full payment of fees sent to the University in advance of the academic period of study.
3.2Full payment of fees made during the academic period of study.
3.3Home and EU Students - Registering after September
4.Payment of Fees – Overseas Students
5.Payment of fees Part time Students
6.Payment By Sponsor
7.Returning Students with Outstanding Debt
8.Early withdrawal from a programme of study
9.Payment of accommodation charges
10.Payment of Library fines and charges
11.Payment of other invoices
12.Overdue Student Debt Collection Procedure – Sanctions against Students
13.Advisory Services & Money Matters
14.Commercial Debtors
15.Overdue Commercial Debt Collection Procedure
16.Authority to write off debts
Introduction
This policy document contains the terms and conditions under which debts owed to the University of Bradford are managed and controlled.
The policy contains details on;
- When, where and how payments are made
- Availability of Payment Plans
- The sanctions that the University has available to effect payment
- The help available to students should they have problems
- Terms and conditions applicable to sponsors and other commercial debtors.
1.Purpose of Policy
The aim of the Credit Control and Debt Management Policy is to ensure that the debt profile of the University is managed effectively, that debt owed to the University is paid in a timely manner, that debt payment is maximised and any potential bad debt is minimised. The University has many sources of income, which are collected by different methods. This policy specifically covers the collection of tuition fees, sponsorship income, accommodation and commercial debt.
The Credit Control Teams based in the Hub and Finance Debtors functions in the Richmond Building provide assistance and advice to the University on credit control and debt management issues. It is however essential that all University staff be aware of the importance of cash management and fully co-operate with finance and credit control staff who manage the administration process.
2.Standard Terms and Conditions – Tuition Fees Financial Requirement for All Students
All students on a programme of study at the University of Bradford are required to pay tuition fees and other charges for each academic year prior to or within the period of study for that year. Fees will be due at the start of each academic year or period of study for the whole programme or course. In specific circumstances provision may be available to pay fees in instalments during the academic year. Progression through a programme of study may be affected if this obligation is not fulfilled. It is the responsibility of the student to ensure that the necessary funds are in place to pay their fees.
Undergraduate full time UK/EU students can apply to Student Finance England/SAAS (Student Awards Agency for Scotland) for financial assistance with tuition fees.
If a student intends to apply to an organisation i.e. SFE/SAAS, or has sponsorship for assistance in paying their fees, they must do so in good time. The University will need to see documentation from such an organisation or sponsor, confirming the level of financial assistance it will give, at registration or commencement of studies.
Should the University have not received evidence that funding is in place by November of each Academic year the student will be liable for any outstanding fees.
3.Payment of Fees – Home/EU Students
The following options are available to all home and EU students who are responsible for the payment of their fees.
NOTE: acceptance of one of these payment methods is a condition of registering at the University.
3.1Full payment of fees sent to the University in advance of the academic period of study.
The University offers the facility to allow students to pay tuition fees in advance prior to registration.
If the student chooses to pay their share of the fee in full, they can do so in a single instalment. Refer to www. …. for the latest details on ways to pay. An advance payment discount may be available in certain circumstances seewww … f for the latest discount offers.
3.2Full payment of fees made during the academic period of study.
A student can take the option to pay the full fee on enrolment at the University or agree to pay the fee in several instalments over a period of time using direct debit or recurring card payment agreements.. Self funding students paying fees in excess of £4,500 must pay 50% of the fee on registration with the balance paid over two or four instalments. Self funding students paying fees of less than £4,500 may opt to pay in 3 or 5 equal instalments.
Further information on payment plans is available at www…
The University reserves the right to charge an administration fee if your direct debit or recurring card payment is rejected. Details of any outstanding University debts will be provided by the Credit Control Team or Payment Services Team on request.
Alternative ways to pay tuition fees are available to students including cash, debit and credit cards, bank transfers, cheques or postal orders.
3.3Home and EU Students - Registering after September
The same payment options are available to students registering after September as for other students. These students will still be allowed to pay by instalments but should be directed to contact the Debtors and Credit Control Team to arrange an appropriate payment plan.
4.Payment of Fees – Overseas Students
The same payment options are available to overseas students as for Home and EU students see section 5 above. However, overseas students are required to make a payment of at least 50% of fees on or before enrolment. Instalments can then be agreed to pay the balance. The latest information available on the terms for payment for overseas students is available at
Advance payment by way of a deposit towards fees is required from students from selected overseas countries. The minimum deposit required is currently set at £2,000 to obtain an unconditional offer letter to enable the student to apply for a study visa. Further details are available on the University’s websiteor from the Student Support Centre – International Office.
NOTE: acceptance of one of these payment methods is a condition of registering at the University.
Students from some countries with foreign exchange controls need to obtain documentary evidence of enrolment before a transfer of funds can be made. In these cases the University will seek confirmation from the authorities in the student’s home country to verify approval to enrol on the course and to ensure there are no objections in principle to funds being released. Temporary enrolment documents will then be provided to release the funds. Once these have been paid to the University enrolment will be completed. In most cases the University’s formal offer letter will be sufficient to enable release of funds.
5.Payment of fees Part time Students
Students entering part-time courses of study must have the necessary funds or sponsorship in place to pay the tuition fees. The full amount may be paid in advance, at the time of registration or by an agreed instalment plan. Students should be directed to contact the Student Registry Team if a payment plan is required.
6.Payment By Sponsor
If the student has arranged for the fee to be paid in whole or in part by a sponsor, it is important that the student provides proof of the sponsorship to the Student Registry Team, so that the sponsor can be invoiced. Standard payment terms of 30 days apply. In the event of a sponsor defaulting on payment, it is the student’s responsibility to arrange an alternative source of funding or to pay the fees. The student will be invoiced for all outstanding fees in the event of default.
7.Returning Students with Outstanding Debt
Students returning to the University must have paid all outstanding debts (including library debts) before they can re-enrol. Any student returning to their next year of study must not have debts outstanding from any previous academic years.
Before the new academic year commences students will receive written notification from the University that they will be unable to re-enrol if debts are not paid. Once the debt is cleared the Credit Control Team will notify the relevant Schools so full enrolment can be confirmed.
8.Early withdrawal from a programme of study
Before a student makes the decision to withdraw from a course of study they should be directed to seek guidance and advice from the Student Support Centre in the Hub. The full financial implications of early withdrawal will be discussed with the student including potential for financial help so they can consider their options before making any final decisions.
The Money Doctors Team in the Student Support Centre provide financial advice and help to students their details can found via the University’s website
NEXT BIT NEEDS TO PICK UP FROM THE NEW REFUND POLICY BEING WRITTEN BY HAYLEY PRESTON
9.Payment of accommodation charges
Students staying in University owned accommodation will be provided with a tenancy agreement for the period of rental. On acceptance of an offer for a place in halls the tenancy agreement must be returned with an advance rent payment (currently £250) to hold the room. This advance rent payment is deducted from the total charge.
Accommodation charges will be invoiced and must be paid immediately at the start of the tenancy agreement unless payment by instalments has been agreed, normally by three payments
Students will remain liable for accommodation charges for the full term of the tenancy agreement regardless of use. The agreement may however be taken over by another student subject to negotiation with the site manager.
Full details on accommodation terms and conditions are available from the Accommodation Office or by accessing the Accommodation section of the website on www….
10.Payment of Library fines and charges
The Learning Support Services (LLS) Rules and Regulations set out the borrowing entitlements and associated level of fines and charges payable including the restrictions that apply, when fines fall due and/or items are not returned. Further details are available at www……..
Failure to return the items and/or pay the outstanding fines or charges will result in LSS forwarding invoices to the Finance department for further action under this policy.
11.Overdue Student Debt Collection Procedure – Sanctions against Students
Whilst the procedure to collect outstanding debts is specific to each case the following steps will be taken:
A written reminder sent to all e-mail addresses held, requesting payment within 7 days and to inform the student that failure to clear any arrears will result in withdrawal of access to University facilities.
A further reminder is sent after 7 days giving notice that facilities will be withdrawn if payment is not received.
If no response is received facilities are withdrawn 14 days after the missed payment. This will include IT and Library access.
Providing the student makes contact with the Credit Control Team and agrees a mutually acceptable payment plan, facilities will be re-instated.
If no further response is received, 21 days after the missed payment, a letter is sent to the student’s local and home addresses encouraging them to contact the Credit Control Team to discuss payment and to highlight that non-payment may result in exclusion.
Subsequent failure to respond will result in an exclusion letter to local and home addresses and the School, 28 days after the missed payment.
If the student makes payment at any point they are re-instated following consultation with the School and can continue their studies.
Students will not be able to re-enrol for a new academic year or be able to graduate until all outstanding debts are paid.
If a student leaves the University with outstanding debts this is confirmed in writing with a further request for payment or to contact the Credit Control Team to arrange a payment plan. This reminder gives 14 days notice of referral to a debt collector or for legal action.
If no response the debt is referred to a debt collection agency to escalate the process. Debts outstanding from overseas students are referred to a debt collection agency in the student’s home country.
If this is not successful legal action is considered based on the merits and likely costs involved in each individual case.
Where facilities have been withdrawn from a student and a debt is subsequently settled access can normally be re-instated on the same day between 9.00am and 5pm on a Monday to Friday. Outside these hours access will be re-instated the next working day.
12.Advisory Services & Money Matters
The Hub Student Support Centre includes a Financial Support team specifically to offer advice if a student is struggling financially. Services include, financial support, budget advice, dealing with payment difficulties, dealing with banks and the Jobshop.
More information is available through the University’s website
13.Commercial Debtors
Amounts due to the University from commercial or voluntary organisations are invoiced by the relevant School. The University’s standard payment terms are 30 days and detailed on all invoices unless otherwise agreed in advance.
14.Overdue Commercial Debt Collection Procedure
Collecting the debt from the customer
Individual Schools or Departments are responsible for the sending out of the original invoice to customers. However, all debt collection activity will be undertaken through the Credit Controller as part of the Accounts Receivable team.
The standard steps to collecting outstanding commercial debt are :-
- The terms for payment of all invoices will be 30 days from the date of the invoice unless otherwise agreed by the School / Department in advance and a signed contract is in place.
- A First Reminder will be issued as soon as the payment terms date has been exceeded
- A Second Reminder will be issued 7 days after the First Reminder
- A Final Reminder will be issued 14 days after the Second Reminder
- Invoices remaining unpaid 7 days after the Final Reminder will be investigated and discussed with the relevant School or Department before any formal legal proceedings are instigated.
- If payment is not received after court proceedings outstanding debts may be referred for recovery to an external debt collection agency appointed by the University.
The Credit Controller will supplement the above standard steps with direct contact by telephone or e-mail with debtors. They will also liaise and review the debtors circumstances on a regular basis with the relevant School or Department.
Raising the University’s awareness of Outstanding Commercial Debt
In order to ensure maximum awareness within the originating School or Department of both aged debt and outstanding invoices of high value the following internal escalation process will be followed :-
-Each month the Financial Accounting team will distribute information summarising the level of outstanding commercial debt to the Head of Finance and the Head of Debtors
-Every 2 months a schedule of outstanding commercial debt will be distributed to the School Deans or relevant Heads of Service. This exception report will provide details of ;
All outstanding invoices more than 3 months old regardless of value
All outstanding invoices over £5,000 regardless of the age of debt
-Every 6 months a report will be presented to ASPC detailing all outstanding commercial debt aged over 6 months OR over £5,000 in value.
15.Authority to write off debts
Delegated authority to write off University of Bradford debt is as follows:
Invoices up to £300 Director of Finance & Commercial Services
Invoices over £300Academic Strategy & Performance Committee
A report is provided to Academic & Strategy Performance Committee detailing all student or commercial debts over £300 recommended for write off with reasons. These bad debts are subject to internal and external audit scrutiny.
Draft version 1 KW 1st March 2010Table of Contents
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