CREDIT CONTROL AND DEBT MANAGEMENT POLICY
Page
Introduction
2
General Information
3
Debt Collection Policy
Individual Students
All Other Debtors
4
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INTRODUCTION
The University of Northumbria at Newcastle (the University) receives income from
three main sources:
Central Funding (HEFCE/TTA)
Tuition Fees
Sponsors and Companies
Each type of income is collected differently and thus the University credit control and
debt management policy reflects this.
The University is becoming increasingly dependant on diversifying its income sources
and thus a credit control and debt management policy is vital to prevent unauthorised
risks being taken with the University’s resources.
Overseas opportunities have provided an area of expansion for the University over the
last few years. It is important that staff are aware of and capable of managing the risk
associated with trading in overseas markets.
Effective credit control maximises the cash flows from each area of the business
and minimises the risk to the University of bad debt. It is vital that all decision
makers in the organisation are aware of the importance of cash management and
fully co-operate with Finance Department staff that manage the administrative
process. The Finance Department in return will provide assistance and advice to
other departments on debt management issues.
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GENERAL INFORMATION
Payment Methods
The following payment methods are available:
Cash
Cheque
Bank Transfer
Direct Debit
Credit Card
Debit Card
(in person at the University Cash Office, No.3 Ellison Terrace,
City Campus)
(made payable to University of Northumbria)
(using bank details as provided on invoices)
(by completing DD mandate at registration)
(Cash Office Tel. 0191 227 4092)
(Cash Office Tel. 0191 227 4092)
Standard Terms and Conditions
Students
Tuition fees become due on the first day of a programme of study.
Other Debtors
University standard terms and conditions apply. Invoices are due for payment on or
before 30 days after the invoice date.
Payment terms can only be changed with prior agreement of the University’s Finance
Director.
Collections Agency
As part of our rigorous procedures we have engaged a specialist debt collection
agency. The current debt collection agents are Bond Pearce Solicitors based in offices
throughout England. The University will only pass matters into their hands where all
other efforts have been exhausted. Their remit is to use the legal system to contact
debtors and pursue enforcement.
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DEBT COLLECTION POLICY
INDIVIDUAL STUDENTS
Tuition Fees
The Policy for individual students details the arrangements for the payment of fees
and the sanctions, which may be applied in the event of non-payment of fees by the
due date. The Policy is designed to ensure that all students are treated in a fair and
equitable manner with respect to the payment of fees.
The Policy applies to all students – including part-time, full-time, undergraduate,
postgraduate, home and overseas students.
‘Students’ are hereby defined as persons registered or enrolled at the University to
follow a programme of study, which may or may not lead to an award or
qualification. If a student leaves the University with outstanding debts, the University
will pursue payment of the outstanding debt.
Students are responsible for paying all fees incurred whilst studying at the University.
From the start of the academic year 2002/2003 all students registering with the
University will be required to pay a minimum of one half of all tuition fees on receipt
of an invoice from the University’s Finance Department. This payment will be
collected by Direct Debit at a date advised on the invoice. The second half of the
tuition fee will be collected by Direct Debit on the 1st working day of the following
February.
Any student that has debts outstanding 60 days following invoice date, and who
has not contacted Finance Department staff to make arrangements to pay, will
be advised in writing (to term and home addresses on University records), that
they are being withdrawn from the University.
The Finance department will notify the Faculty Registrar that a student should be
withdrawn from a course due to non-payment of fees. The Faculty Registrar will
remove the student from the University administration system. This will mean that the
student will no longer have a student record, be timetabled for tuition, be issued on
exam lists nor will there be any marks recording. Additional to this they will no
longer be able to use computer or library facilities or attend any award congregations.
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Collection Procedure
Whilst the procedure to collect monies outstanding is specific to each case the
following steps will be taken:
1)
2)
3)
Written reminders from the University
Withdrawal from the University
Referral to debt collection agency
1) Sending reminders to Students owing monies to the University is the sole
responsibility of the Debt Management Section within the Finance Department. In
most cases this will consist of a prescribed process dictated by time and responses
from the debtor.
2) The sanction of withdrawal from the University will be imposed on students if
arrangements to pay have not been formally agreed with the University 60 days
following invoice date. Students will be informed via the Debt Management Section
in writing with copies to the Faculty Registrar for action.
3) Students who leave the University will be traced via the Debt Collection Agency
and debts will be recovered via due legal process.
N.B. Payment by a sponsor
Some students have agreements with a sponsor to pay their tuition fees. In the event
that a sponsor defaults on payment, it is the student’s responsibility to pay the fees.
The student will be advised in writing from the Debt Management Section that
liability has passed to them. Standard terms and conditions that apply to nonsponsored students will become relevant from the date of this letter.
Early Withdrawal
In the event of a student withdrawing themselves from a programme of study; the date
of withdrawal will be the date from which the student formally advises the University
in writing that they are no longer attending their course of study.
The procedure for calculating any reduction in fees is as follows:
The student who withdraws within four weeks of the commencement of their course
(each academic year) will receive a 100% reduction in fees.
The student who withdraws between four weeks and the end of the first semester will
receive a 50% reduction in fees.
The student who withdraws after the end of the first semester will receive a 0%
reduction in fees.
This applies to all students and their sponsors.
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ALL OTHER DEBTORS
Credit Control
All new customers of the University must have relevant credit checks carried out prior
to contracts being signed and work being carried out by University staff. It is the
responsibility of the selling department to complete relevant credit authorisation
documentation. This will be the basis of the credit checks carried out by the Finance
Department. Finance staff will provide a go/no go decision based on evidence
obtained within 48 hours of receipt of the completed documentation.
Debt Management
The University’s standard terms and conditions state that payment terms for all
invoices are on or before 30 days following invoice date. Exceptions to this must be
agreed in advance with the University’s Finance Director.
Late payments will be liable to interest charges. The rate of interest will be 4% above
the Bank of England base rate per annum on the full outstanding amount. Interest will
be calculated from the date when the debts become overdue and when the debts are
eventually paid in full.
Sending reminders to debtors is the sole responsibility of the Debt Management
Section within Finance. In most cases this will consist of a prescribed process dictated
by time and responses from the debtor.
Whilst the procedure is specific to each case the following steps will be taken to
recover debt:
1) Written reminders from the University
2) Referral to debt collection agency
Invoices will be treated as individual transactions when reminders are issued. They
will only be withheld from the debt collection process by Finance staff. Requests to
prevent reminders being issued must be made in writing to Finance and monthly
reviews will take place to determine ongoing status.
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