UNCW Collection Process

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UNCW Collection Process Linda Padezanin UNC Wilmington

description

UNCW Collection Process. Linda Padezanin. UNC Wilmington. Session Etiquette. Please turn off all cell phones. Please keep side conversations to a minimum. If you must leave during the presentation, please do so as quietly as possible. NC Collection Policy – Accounts Receivable. - PowerPoint PPT Presentation

Transcript of UNCW Collection Process

Page 1: UNCW Collection Process

UNCW Collection Process

Linda PadezaninUNC Wilmington

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Session Etiquette

• Please turn off all cell phones.

• Please keep side conversations to a minimum.

• If you must leave during the presentation, please do so as quietly as possible.

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NC Collection Policy – Accounts Receivable

• 2 Letters sent from University to Student – 30 days apart• 1 Letter sent from Attorney General’s office to Student –

Balances over $50.00• Enter Student Name and Social Security Number into

NC Department of Revenue – Balances over $50.00• Send to one of the six state approved collection

agencies• Place holds on student account to prevent:

a) obtaining transcriptsb) obtaining diplomasc) registering for classes

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UNCW Collections

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Huddle

• Determine which students are to be placed into Collection Status.

-Process is initiated on the 1st business day of each month through SSRS, qualifiers are

students not registered with a balance.

-Two reports are pulled, one that is less than $50.00, the other for greater than $50.00

-Process is run in Banner and reported in SSRS.

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Huddle (cont.)

UNCW Criteria - 1. Students not registered for current term who owe a

balance2. Students not registered and financial aid recalculated3. A “CO” collection hold is placed on SOAHOLD to

prevent the student from receiving diplomas, obtaining transcripts or registering for future classes. Only when balance is a zero can this hold be removed.

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First Down

• Collection Letter #1 is sent to students which allows student 30 days to pay in full or sign up on a payment plan.

• Followed by a phone call to student, demand full payment, then offer a payment schedule. Depending on the balance, determines how long payment schedule will last. (ex. $1,000- 9-12 months, $1,500-12-18 months. We do not allow students to receive transcripts, diplomas or register for classes with a balance owed, hold on account.

• Allow 30 days for payment• Students are coded “L1”, “99” in TSAACCT

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First Down Letter #1• October 12, 2011•  •  •  •  • John Deadbeat• 7500 Not Paying Lane• Collections, NC 28403•  •  • Re: 12345678•  • Dear John:•  • Our records indicate that you have an outstanding debt in the amount of $261.68. If you have any questions about this balance or feel it is incorrect, please contact Linda Padezanin at

910-962-4280 immediately. Otherwise, please forward your payment within 30 days to:•  

• UNCW• 601 S. College Road

• Wilmington, NC 28403-5926• Attn: Linda Padezanin, Student Accounts

•  • In accordance with university policy, a hold has been placed on the account, and you will not be allowed to receive transcripts, diplomas, or register for any future classes until the balance

has been paid in full.•  • Pursuant to North Carolina G.S. 147-86.23, accounts that are referred to the Attorney General’s Office will incur a onetime late penalty of 10% and monthly interest shall be charged in

accordance with G. S. 105-241.1 (i) on all past due balances until paid in full. The current rate of interest is 5% per annum.•  • Thank you for your prompt attention.•  • Sincerely,•  •  •  • Kim Lundy• Accounting Specialist/Collection Supervisor

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SOAHOLD

• “CO” hold placed on account

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TSAAREV

• Collection Alert

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TSAACCT

• Mark TSAACCT screen with “L1” and “99” (99 signifies that interest will continue to be charged until balance is paid in full)

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Second Down

• Collection Letter #2 is sent to student which allows student 30 days to make full payment or sign up on a payment plan.

• Balances greater than $1,500 are sent certified mail.• Followed by a phone call to student, demand full payment,

then allow a payment schedule. Depending on the balance, determines how long payment schedule will last. (ex. $1,000- 9-12 months, $1,500-12-18 months.

• Allow 30 days for payment• Students are coded “L2”, “99” on TSAACCT screen• Balances less than $50.00 are coded for write off at the end

of the fiscal year. All holds remain intact until paid in full.

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Second Down Letter #2• May 12, 2010•  •  •  • John Deadbeat• 7500 Not Paying Lane• Collections, NC 28403

•  • Re: 12345678 •  • Dear John:•  • Our records indicate that you have an outstanding debt in the amount of $1,022.95. If you have any questions about this balance, please contact Linda Padezanin at (910) 962-

4280 immediately. You may also contact our office to discuss a payment plan. Otherwise, please forward your payment within 30 days to:•  

• UNCW• 601 S College Road

• Wilmington, NC 28403-5926• Attn: Linda Padezanin, Student Accounts

•• Please be aware this is your final notice, in accordance with university policy, a hold has been placed on your account, and you will not be allowed to receive transcripts,

diplomas, or register for any future classes. In addition, your account will be referred to the Attorney General’s Office and/or to a collection agency who will report the account to the credit bureau and debts $50 and over are referred to the North Carolina Department of Revenue for garnishment of tax refunds.

•  • Pursuant to North Carolina G.S. 147-86.23, accounts that are referred to the Attorney General’s Office will incur a onetime late penalty of 10% and monthly interest shall be

charged in accordance with G. S. 105-241.1 (i) on all past due balances until paid in full. The current rate of interest is 5% per annum.•  • Thank you for your prompt attention.•  • Sincerely,•  •  • Kim Lundy• Accounting Specialist II/Collection Supervisor

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TSAACCT

• Mark TSAACCT screen with “L2” and “99” (99 signifies that interest will continue to be charged until balance is paid in full)

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Conversion – Payment Plan – Prior to Interest• Date: October 30, 2012•  • Student I.D. # 12345678•  • Current Mailing Address: ______________________________________________•  • ____________________________________________________________________•  • Phone Number: _______________________________________________________•  • Email Address: ________________________________________________________•  • I, John Deadbeat wish to pay my balance of $261.68 as follows:•  • $87.23 beginning 2/5/13 and monthly thereafter by the 15th of each month for 3 months until paid in full. I understand that I can pay more if I wish.•  • I understand it is my responsibility to make sure payments have been sent in accordance with the terms of this contract. No statement or payment coupon will be provided. It has been

explained to me that if payments are not received by the due date, my account will be accelerated to the Attorney General’s Office and/or to a collection agency. In the event of default, I understand that in accordance with State Policy, my personal information will be entered into the NC Department of Revenue’s website for garnishment of future tax money. I also understand that if I default, pursuant to North Carolina G.S. 147-86.23, accounts that are referred to the Attorney General’s Office will incur a onetime late penalty of 10% and monthly interest shall be charged in accordance with G. S. 105-241.1 (i) on all past due balances until paid in full. The current rate of interest is 5% per annum

•  • By providing the above referenced address, phone number and email address you consent to be contacted by UNCW or any other agency on behalf of UNCW.•  • I understand no additional transcripts, diplomas or the ability to register for future classes will be allowed until my account is paid in full. •  •  • Student signature ________________________________________(Seal) •  • Date signed ____________________________________________•  • Student Accounts Rep. ___________________________________•  • Date __________________________________________________

• This is important to have the (Seal) placed behind their signature.

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TSAACCT

• Payment plans prior to interest being charged, TSAACCT screen is marked “PS” and “09”

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3rd Down and Long

• For balances that are owed more than $50.00. Enter the information into the Dept. of Justice portal to have a letter sent, include the late penalty as well as interest.

• Interest (.00417%) and a one time late fee penalty (10%) is added to the account through an automated custom process, when the account is coded “AG”, “99” on the TSAACCT screen. The late penalty is immediately charged when the account is coded “AG”. We assess our interest on the 10th day of each month.

• Allow 30 days for payment,

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AG Portal

• Log in

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AG Portal (cont.)

• Entering students

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Attorney General Letter

AG Letter

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TSAACCT

• TSAACCT screen is marked AG and 99

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3rd Down Conversion

• Payment Schedule - Depending on balance determines how long payment schedule will last. (ex. $1,000- 9-12 months, $1,500-12-18 months. NO transcripts, diplomas or registering for classes with a balance owed.

• If student signs up for a payment plan after they have received the Attorney General letter, interest will continue to accrue until the balance is paid in full.

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Payment Plan after Attorney General

• TSAACCT screen is marked “PP” and “99”, which signifies in the process that the account is to be charged interest while on the payment plan.

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Payment Plan after AG Letter• Date: March 1, 2013•  • Student ID#: 123456789•  • Current Mailing Address: ______________________________________________•  • ____________________________________________________________________•  • Phone Number: _______________________________________________________•  • Email Address: ________________________________________________________•  • I, John Deadbeat, wish to pay my balance of $694.00 as follows:•  • $115.66 beginning 3/7/13 and monthly thereafter by the 15th of each month for 6 months until paid in full. I understand that I can pay more if I wish.•  • I understand it is my responsibility to make sure payments have been sent in accordance with the terms of this contract. Pursuant to North Carolina G.S. 147-86.23, a one

time late penalty of 10% and monthly interest shall be charged in accordance with G. S. 105-241.1 (i) on all past due balances until paid in full. The current rate of interest is 5% per annum. If payments are not paid according to this schedule I understand that my account will be accelerated to a Collection Agency as well as my personal information will be entered into the NC Department of Revenue’s website for garnishment of future tax money.

•  • By providing the above referenced address, phone number and email address you consent to be contacted by UNCW or any other agency on behalf of UNCW.•  • I understand no additional transcripts, diplomas or the ability to register for future classes will be allowed until my account is paid in full. •  •  • Student signature ________________________________________ (Seal)•  • Date signed ____________________________________________•  •  • Student Accounts Rep. ___________________________________•  • Date __________________________________________________

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4th Down

• Account is prepared to go to one of the state approved collection agencies

• Contact is attempted prior to sending the account

• Our process is automated at entering the information into the portal for debt set off. Any account that is coded with the collection agency codes (WP, WF, TB, AC, NC, PR) regardless of the delinquency code, their balance will be uploaded into the portal and reported to NCDOR.

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TSAACCT

• TSAACCT screen is marked with the appropriate collection agency code (WP, WF, TB, AC, NC PR) and 99

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NC Dept. of Revenue

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Debt Set Off

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NC DOR

• We report to the NC Department of Revenue weekly on Thursdays between January 1 and June 30.

• We report to the NC Department of Revenue monthly on the 3rd Thursday between July 1 and December 31.

• Through our Ubusiness portal, a disk is created that will have all of the students who owe more than $50.00 to UNCW. This disk will also include students who owe Perkins Loan Money that is past due.

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PAYMENTS • We accept VISA or MasterCard payments over the phone or

in person, with no convenience fee to the student. When balance is paid in full with a credit card, the “CO” hold is immediately removed.

• Accounts that are paid by check will have their hold removed depending on how they paid by check –– Electronic check through Touchnet – hold is not removed

for 10 business days (this is tracked through my Microsoft outlook calendar)

– Paper checks – hold is not removed for 30 business days (this is also tracked through my Microsoft outlook calendar)

– If student can provide a hard copy that the check has cleared their bank, then I will remove the hold

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Monday Report

• Each Monday, I pull a report that will summarize what was collected the previous 7 days. The report is broken down into the bill code categories that track where the money is being received from

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Example of Monday report

• Monday Report ending 2/1/13Student Accounts Services

From: 1/28/20132/4/2013 9:43:18 AM

To: 2/4/2013Weekly Payments by Students in Collection

Student Name Student # Balance AmountDate Agency Last Date Bill CodeMcCauley, Megan L 850302652 1,794.00 110.00 1/30/2013Account Control Technology Inc 3/5/2012 AC

AC 110.00Erickson, Laura D 850211120 0.00 33.13 1/28/2013 AGSimpson, Timelisa A 850152856 0.00 1,606.00 2/1/2013 AGSpake, Benjamin G 850225400 0.00 55.21 1/30/2013 AGWoodard, Ann L 850291818 0.00 45.00 1/29/2013 AGWoodard, Ann L 850291818 0.00 4.69 1/29/2013 AG

AG 1,744.03Burris, Tiffany S 850302222 0.00 11.00 1/29/2013 L1Davis, Hannah E 850339359 0.00 25.00 2/3/2013 L1Duffy, Jason W 850296613 0.00 11.00 1/31/2013 L1Skrba, Mackenzie J 850285663 0.00 3,999.95 2/2/2013 L1Tamagno, Adrien D 850328079 8,670.82 350.00 1/28/2013 L1Tamagno, Adrien D 850328079 8,670.82 377.00 1/28/2013 L1

L1 4,773.95Acuff, Alex E 850323486 311.13 59.81 1/29/2013 PPAcuff, Alex E 850323486 311.13 1.55 1/29/2013 PPAcuff, Alex E 850323486 311.13 38.64 1/29/2013 PP

PP 100.00Doyle, Amy R 850331321 1,000.00 148.00 1/31/2013 PSEmanuels, Adam C 850148640 1,794.23 119.62 1/31/2013 PSGedney, Sara M 850320170 1,923.74 101.33 2/1/2013 PSHorton, Tyrell R 850239632 1,049.37 60.00 1/31/2013 PSJohnson, Caitlin H 850346553 330.00 165.00 1/28/2013 PSMiller, Jordan D 850294449 2,757.78 86.18 1/30/2013 PSPolak, Samantha L 850299924 1,142.00 50.00 1/31/2013 PSSimon, Christina B 850195677 1,100.00 150.00 2/2/2013 PSWatson, John A 850323186 1,033.12 129.14 2/2/2013 PS

PS 1,009.27Cheek, Mandria T 850097942 430.69 23.93 1/31/2013 SE

SE 23.93Arey, Steven D 850255007 0.00 25.00 2/1/2013Todd, Bremer & Lawson, Inc. 7/12/2012 TB

TB 25.00Richter, Krystina N 850227875 358.24 75.00 1/31/2013Windham Professionals Inc 8/21/2012 WPRichter, Krystina N 850227875 358.24 100.00 1/31/2013Windham Professionals Inc 8/21/2012 WP

WP 175.00Report Total: 34,687.96 7,961.18

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Money Received

WEEK ENDING

TOTAL AMOUNT LETTER

## LTRS L1 $ # L1 L2 $ # L2 AG # AG P/S # P/S COLL. AGENCY # AGCY

N/S - FAC. LIBRARY # LIB

WRITE OFF # W/O Barlow # Barlow State Emp

# State Emp

7/6/2012 $ 5,074.96 $ - 0 $623.17 1 $ 36.00 2 $2,576.29 10 $ 1,347.17 11 $ 50.00 1 $ - 0 $ 10.36 1 $334.64 4 $ 97.33 17/13/2012 $ 5,818.20 $ - 0 $ 15.00 1 $ 48.00 3 $ 515.00 7 $ 2,516.30 12 $ 1,991.97 9 $ - 0 $398.60 4 $333.33 1 $ - 07/20/2012 $ 2,871.25 $ - 0 $ 50.00 1 $ 60.00 2 $ 174.50 6 $ 1,369.59 12 $ 653.17 10 $ 50.00 1 $262.27 4 $150.00 3 $101.72 17/27/2012 $ 6,575.51 $ - 0 $ - 0 $ - 0 $1,147.87 5 $ 5,314.64 11 $ 45.00 1 $ 18.00 1 $ - 0 $ 50.00 1 $ - 0

July '12 $ 20,339.92 $ - 0 $688.17 3 $144.00 7 $4,413.66 28 $ 10,547.70 46 $ 2,740.14 21 $ 68.00 2 $671.23 9 $867.97 9 $199.05 2

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Money Received Breakdown

• I also track from the Monday Report how the student paid, cash, check, webcheck, credit card.

Date TOTAL Cash Check Credit Cards 2011-2012 2010-2011 2009-2010

7/6/12 $ 5,024.96 $ 5.00 $ 745.83 $ 4,274.13 7/13/12 $ 3,427.63 $ 25.00 $ 982.95 $ 2,419.68 7/20/12 $ 2,168.08 $ 50.00 $ 712.50 $ 1,405.58 7/27/12 $ 6,530.51 $ 60.00 $ 6,267.33 $ 203.18

8/3/12 $ 4,669.36 $ - $ 601.99 $ 4,067.37

8/10/12 $ 2,636.42 $ - $ 1,403.17 $ 1,233.25

8/17/12 $ 6,488.54 $ - $ 3,394.91 $ 3,093.63

8/24/12 $ 4,790.53 $ 60.84 $ 968.48 $ 3,761.21

8/31/12 $ 2,369.56 $ - $ 1,745.34 $ 624.22

9/7/12 $ 2,863.94 $ - $ 1,677.87 $ 1,186.07

9/14/12 $ 5,273.56 $ 66.75 $ 1,094.11 $ 4,112.70

9/21/12 $ 9,809.98 $ 125.44 $ 4,526.92 $ 5,157.62

9/28/12 $ 8,895.00 $ 266.70 $ 5,669.53 $ 2,958.77

10/5/12 $ 4,626.97 $ 310.10 $ 1,553.19 $ 2,763.68

10/12/12 $ 4,520.85 $ 62.50 $ 1,970.32 $ 2,488.03

10/19/12 $ 11,795.40 $ 45.08 $ 4,470.26 $ 7,280.06

10/26/12 $ 9,115.13 $ 66.70 $ 6,650.06 $ 2,398.37 11/2/12 $ 8,229.57 $ 10.00 $ 6,746.40 $ 1,473.17

11/9/12 $ 19,553.32

$ - $ 8,471.13

$ 11,082.19

11/16/12 $ 5,831.17 $ 425.00 $ 2,447.28 $ 2,958.89

11/23/12 $ 4,741.16 $ 165.04 $ 2,223.73 $ 2,352.39

11/30/12 $ 6,860.39 $ 200.00 $ 2,314.66 $ 4,345.73

12/7/12 $ 7,066.75 $ 474.69 $ 3,863.32 $ 2,728.74

12/14/12 $ 17,118.94

$ - $ 7,822.73 $ 9,296.21

12/21/12 $ 4,980.60 $ 30.08 $ 563.34 $ 4,387.18

12/28/12 $ 784.22

$ - $ 784.22 $ -

1/4/13 $ 9,274.41 $ 2,835.00 $ 4,480.08 $ 1,959.33

1/11/13 $ 9,687.18 $ 810.96 $ 2,013.13 $ 6,863.09

1/18/13 $ 9,078.40 $ 502.54 $ 2,766.29 $ 5,809.57

1/25/13 $ 3,755.63 $ 984.50 $ 576.31 $ 2,194.82

2/1/13 $ 9,130.14 $ 1,666.00 $ 4,602.05 $ 2,862.09

$ 211,098.30 $ 9,247.92

$ 94,109.43 $ 107,740.95 $203,079.71 $ 231,084.12

$ 178,137.55

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OSBM• At the end of every quarter, we run a process that will list

every student who owes a balance in debt set off. This report is then sent to the OSBM by email which is password protected. They will then run a comparison to their database and the output will be students who owe a balance that work for a state agency.

• Report is received by OSBM by fax and a letter is sent to the student. If the student does not respond, a letter is then sent to the students’ employer, along with a copy of the Statute.

• Students will generally set up on a payment plan prior to the letter being sent to the employer, we have a few that have their paychecks drafted, equal to 10% of their net pay.

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State Employee Letter #1

Letter to Student

Your past due account must be paid immediately. Your past due Student Account balance is $6,931.42. If you do not pay this account in full or make arrangements for repayment of this debt, your employer will be notified and appropriate action will be taken in accordance with the law. You can avoid this action by contacting Linda Padezanin at 910-962-4280 no later than May 15, 2012.

N.C.G.S. § 143-553 provides that employees of the State, who owe money to the State, must make full restitution of the amount owed as a condition of continuing employment. It has come to our attention that you are employed by New Hanover County Schools and are delinquent in repaying a debt owed to the University of North Carolina Wilmington.

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State Employee Letter #2

• Letter to Employer

It has come to our attention, that Ms. Brewton is employed by Cleveland County Schools. Ms. Brewton has been advised of the delinquency of this debt by this office and she has been notified by the North Carolina Department of Justice that if satisfactory repayment is not made on the account then her employer will be notified. This letter is to notify you of the delinquent account owed by Ms. Brewton and to ask you to immediately begin termination of this employee if she does not enter into a satisfactory repayment agreement with this office. Once the repayment agreement is made between our office and Ms. Brewton, she can authorize in writing within 30 days that the Cleveland County Schools may deduct payments of not less than 10% of her net disposable earnings each pay period starting immediately until this debt is paid in full. If you have any questions regarding this matter please contact Linda Padezanin at 910-962-4280. Thank you for your attention to this matter.

N.C.G.S § 143-553 provides that employees of the State, who owe money to the State, must make full restitution of the amount owed as a condition of continuing employment. This statute is enclosed for your review.

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Statute

• Statute§ 143-553. Conditional continuing employment; notification among employingentities; repayment election.(a) All persons employed by an employing entity as defined by this Part whoowe money to the State and whose salaries are paid in whole or in part by State fundsmust make full restitution of the amount owed as a condition of continuingemployment; provided, however, that no employing entity shall terminate for failure tomake full restitution the employment of such an employee who owes money to theUniversity of North Carolina Health Care System for health care services.(b) Whenever a representative of any employing entity as defined by this Part hasknowledge that an employee owes money to the State and is delinquent in satisfying thisobligation, the representative shall notify the employing entity. Upon receipt ofnotification an employing entity shall terminate the employee's employment if afterwritten notice of his right to do so he does not repay the money within a reasonableperiod of time; provided, however, that where there is a genuine dispute as to whetherthe money is owed or how much is owed, or there is an unresolved issue concerninginsurance coverage, the employee shall not be dismissed as long as he is pursuingadministrative or judicial remedies to have the dispute or the issue resolved.(c) An employee of any employing entity who has elected in writing to allow notless than ten percent (10%) of his net disposable earnings to be periodically withheld forapplication towards a debt to the State shall be deemed to be repaying the money withina reasonable period of time and shall not have his employment terminated so long as heis consenting to repayment according to such terms. Furthermore, the employing entityshall allow the employee who for some extraordinary reason is incapable of repayingthe obligation to the State according to the preceding terms to continue employment aslong as he is attempting repayment in good faith under his present financialcircumstances, but shall promptly terminate the employee's employment if he ceases tomake payments or discontinues a good faith effort to make repayment. (1979, c. 864, s.1; 2007-306, s. 2.)

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Write-Offs

UNCW follows the following policy regarding write-offs

– Balances less than $50.00 written off at the end of the fiscal year.

– Balances greater than $50.00 need to be older than 2 years

– Debts that are greater than $50.00 but less than $400 need to have been assigned with 1 collection agency

– Debts over $400 need to have been assigned with 2 collection agencies.

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Overtime

• Holds remain on student account until the balance is paid in full. Even if they have been written off. No transcripts, diplomas or readmission is allowed until the account balance is paid in full.

• They remain in debt set off as well until balance is zero.

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Collection Practices

• FDCA (Fair Debt Collection Practices Act) is followed at all times.

• Disputes are handled by a neutral party within the university.

• Bankruptcy – all collection efforts stop with a bankruptcy notification. (includes removal of holds as well as removal from debt set off). If bankruptcy discharged, balance is written off, if bankruptcy is dismissed, hold is placed and entered back into debt set off and collection activity proceeds as normal.

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Questions