Unpaid School Fees Debt Collection – Helpful Guide
25th November 2022
Private schools (also known as independent schools) are becoming increasingly more at risk of non-payment of tuition fees by parents. This highlights the growing need for an effective unpaid school fees debt collection solution.
Instructing a specialist debt collection agency that can take appropriate action and recover your debt can save time and stress.
Unpaid School Fees Debt Collection Guide – Contents
There are a number of reasons why payment of fees can be withheld from parents or guardians. Financial difficulties are among the most common.
The increasing cost of living has left families in financial circumstances where they have to put the payment of bills first over education fees.
Whilst this is a genuine reason for not being able to pay, there are some that will simply refuse to pay and think they can get away with it.
For creditors, now more than ever is a critical time to monitor overdue invoices and try to mitigate the risk of not being paid.
What action can be taken when a parent/guardian refuses to pay their outstanding debts?
DCBL are school fees collection specialists and have put together this guide of helpful tips gathered throughout their long history of experience.
5 Steps for Recovering Non-payment of School Fees
Mostly, private schools will have bursars or financial managers that deal with unpaid school fees recovery when it occurs.
They will have methods that when followed are effective for recovering unpaid fees from those that fail to pay. Also, the need to escalate some further may occur and a reputable company such as DCBL can support you in recovering these unpaid fees.
However, if there are no measures in place to stop or at least prevent the non-payment of school fees then you should follow our tips below.
1. Keep Up-To-Date Records
It is important for a school’s finance department to keep up-to-date records of payment agreements with parents. Agreements can be used as evidence in any disputes that may arise.
Having them sign any contracts is the best practice for any school and will prove extremely useful when recovering debt. If a document is signed, this highlights the intention for them to make the payment and terms.
2. Have a Credit Control Process in Place
Having a strong credit control process in place can help prevent the need for a school fees debt collection agency.
These actions can include sending invoice reminders, upcoming payment reminders, notices if payments have not been made successfully etc.
The first step that should be taken by the finance team in the debt recovery process is to contact the debtor as soon as their payment is missed.
It is important to note that the longer a debt is left, the more difficult it becomes to recover so the sooner you act, the better.
3. Payment Plans
Like in most businesses, payment plans allow companies to tailor the payment needs of their customer. This can help companies benefit from a reduction in late payments and an increase in cash flow.
Parents may have a better time paying for school fees if they know they can pay for this in instalments.
However, it is important to note that if someone agrees to pay via a payment plan, they can easily cancel the direct debit and result in default on payments.
4. Engage With the Debtor
It is a reality of life that communication can help with the peaceful resolution of any situation, and the same can be said for debt recovery.
Communicating with your debtors, such as sending letters or emails, can encourage payments.
A gentle nudge that payment is due plus any agreements made will certainly highlight to the debtor that they owe money and you are serious about recovering it.
14 days is a reasonable time to wait for a response. If you get no response during this time, you may consider escalating matters further.
If no response has come from the letter, the next step is to engage with your debtor by either phone or an in-person meeting.
It is important to keep your tone professional and express empathy for the customer’s circumstance, as this can help your school debt recovery process run smoothly.
5. Debt Collection for Unpaid School Fees
If you have followed our tips and still need school fees debt collection, contact the professionals.
Internal credit control procedures sadly do not always work, and when this happens the best action is to reach out to a specialist such as DCBL.
In addition, involving debt collectors will save you time and minimise the risk of affecting your cash flow.
Debt collection agencies are a cost-effective way for private schools to recover their unpaid school fees.
We take pride in offering a service that gives the desired outcome and solution for recovering unpaid school fees.
DCBL’s team of experts is on hand to help, contact us today for a free quote!
