Credit Control and Debt Management Policy

Finance Service

NB. This policy is available on the University of Cumbria website and it should be noted that any printed copies are uncontrolled and cannot be guaranteed to constitute the current version of the policy.

POLICY SCHEDULEPolicy title Credit Control and Debt Management PolicyPolicy owner Financial Ledgers Department – Finance Policy lead contact Catherine RaineApproving body UMT (University Management Team)Date of approval 05 December 2008Date of implementation 01 January 2009Version no. 1Related Guidelines, Procedures, Codes of Practice etc.

Financial Regulations

Review interval Annually

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Credit Control and Debt Management Policy

1. Contents Introduction

Internal Purpose of Policy

Standard Terms & Conditions – All Students

Paying your Fees – Home/EU Students

Paying your Fees – Overseas Students

Home/EU Students – Registering After September

Part Time Students

Payment by Sponsor

Returning Students with outstanding debt

Early withdrawal from a programme of study

Payment of Accommodation Fees

Payment of Library fines and charges

Payment of Other Invoices

Overdue Student Debt Collection Procedure – Sanctions against Students

Advisory Services & Funding Advice

Commercial Debtors

Overdue Commercial Debt Collection Procedure

Debt Write Off Authority Limits

Appendix

2. Introduction

Contained within this document are the terms and conditions under which debt owed to the University of Cumbria is controlled.

The policy contains details on;

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When, where and how to pay

Payment plans available

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.

3. Internal Purpose of Policy

The aim of the Credit Control and Debt Management Policy of the University of Cumbria is to ensure that the debt profile of the University is managed effectively, that debt owed to the University is converted into cash in a timely manner, that debt converted to cash 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.

It is vital that all decision makers in the University are aware of the importance of cash management and fully co-operate with the finance staff who manage the administration process. The finance office in return will provide assistance and advice to the University on credit control and debt management issues.

4. Standard Terms and Conditions – Tuition Fees Financial Requirement for All Students

All students on a programme of study at the University of Cumbria will be required to pay tuition fees and all other charges in respect of each academic year of the period of study. Fees are due for each academic year or period of study for the whole programme/course. Fees are normally collected through 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.

Undergraduate full time UK/EU students can apply to SLC (Student Loan Company)/SAAS (Student Awards Agency for Scotland) for financial assistance.

If the student intends to apply to an organisation i.e. SLC/SAAS, or sponsorship for assistance in paying their fees, he/she must do so in good time. The University will expect to see a document from such an organisation or sponsor, confirming the level of financial assistance it will give at registration/commencement of programme of study.

Should the University have not received evidence that funding is in place by December students will be liable for the outstanding fees.

5. Paying your 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.

1. Full payment of fees sent to the University in advance of the academic period of study.

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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. Please refer to appendix five “Methods of Payment” for details on ways to pay.

2. Full payment of fees made during the academic period of study.

A student can take the option to pay over a period of time using a direct debit agreement, see Appendix One for a Direct Debit form.

For further information on payment plans see Appendix Two.

NOTE: We reserve the right to charge an administration fee if your direct debit is rejected, see Appendix Three.

Details of your outstanding University debts can be obtained from student finance.

Please refer to the Appendix Five “Methods of Payment” for details on alternative ways to pay.

6. Paying your Fees – Overseas Students

NOTE: acceptance of this payment method is a condition of registering at the University.

1. Full payment of fees sent to the University in advance of the start date of the academic programme.

The student must pay their fee in full; they can do so in a single instalment. Please refer to Appendix Five “Methods of Payment” for details on how to make payment.

7. Home and EU Students - Registering after September

Students will still be allowed to pay by instalments. Please contact the student finance department for more information.

Please refer to the Appendix Five “Methods of Payment” for details on how to make payment.

8. Part time Students

Students entering part-time courses of study must ensure that the necessary funds or sponsorship are in place to pay the tuition fees. The full amount may be paid in advance, at the time of registration or by instalments.

Part-time students can pay by direct debit (see Appendix One) through the duration of the course. Please contact student finance for more details.

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9. 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 finance, so that the sponsor can be billed. In the event of a sponsor defaulting on payment, it is the students responsibility to pay the fees. The student will receive an invoice for all outstanding fees.

10.Returning Students with Outstanding Debt

Students returning to the University must have paid all outstanding debts (including library debts) before they can reregister.

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 register. Once the debt is cleared the Finance office will notify the relevant departments so full registration can be confirmed.

The University debt panel will meet three times throughout the academic year to discuss any on going cases or issues which may prevent students from re registering. The debt panel will be made up of a member of staff from the following services:

Student Finance

Student Records

Student Development and Advisory Service

Hospitality and Catering Representative for all related debts

Relevant member of the academic staff/ programme leader

11.Early withdrawal from a programme of study

Before a student makes the decision to withdraw or intercalate from a course they must seek guidance and advice from the Student Development and Advisory Service. Here they will be able to discuss the full financial implications for the student and help to decide which option is best for them.

The Money Doctors Team can be contacted by using the following link http://www.cumbria.ac.uk/Services/SDAS/contact_us.aspx

Full time students:

1) Full time students who withdraw during the first three weeks of the first semester will have any fees paid to the University refunded in full.

2) Students who transfer to a different institution in the first three weeks will have fees transferred to their new institution, to the extent that they have paid fees to University of Cumbria.

3) Students, who withdraw after the first three weeks but before the end of the first semester, will be liable to pay 50% of the annual fee.

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4) Students who withdraw after the end of the first semester will be liable to pay the full annual fee.

5) Students who qualify for a bursary or “Cumbria Grant” will have their bursary entitlement stopped on withdrawal. The amount of bursary payable to, or repayable by the student will be calculated on a case-by-case basis using the following rules:-

A student who withdraws before the end of the first term will not be entitled to any bursary. Any amount paid to the student under a University bursary scheme will be repayable in full to the University.

A student who withdraws after the end of the first term but before the end of the second term, will be entitled to 25% of the total annual bursary assessed as payable to them. Any amount of bursary paid to the student in excess of the calculated amount, will be repayable in full to the University.

A student who withdraws after the end of the second term but before the end of the third term, will be due 75% of the total annual bursary assessed as payable to them. Any amount of bursary paid to the student in excess of the calculated amount, will be repayable in full to the University.

6) Should the withdrawal be as a result of the students ill health, death of a husband, wife, partner, health and safety risk or dependant, the student will have the right to have their case considered by a panel, to be convened and chaired by the Head of Student Development and Advisory Services. The panel will be selected by the Head of SDAS, will normally be drawn from the following: the Financial Ledger Coordinator, one member from Student Administration, one member from Admissions, a member from Hospitality & Campus Services and PAT, Cohort or Programme Leader. The head of SDAS will chair and conclude the meeting.

7) Should a student intercalate, the rules will be applied as if the student had withdrawn, and payment must be received in the year they intercalate in line with the rules above. However, the total payments received from the student will be credited against their fee account in the year the student returns. For the avoidance of doubt, the student will pay the prevailing fee for their course for the year in which they return. E.g.

Year 200X/200Y Student fee: £3,070

Opts to intercalate in January 200X, fee due: £3,070

Amount paid by student in academic year 200X/Y: £3,070

Student returns from intercalation in 200Y/Z when fee is: £3,145Already paid by Student : £3,070Balance due from student in 200Y/Z: £ 75

If a student is in receipt of the Cumbria grant or bursary their payments will be stopped. Once the student has returned to study in the next academic year they will receive the remaining payments that would have been given in the previous year.

Part time students

In the case of part time students, the annual fee will be based on:-

The “normal annual fee” will be based on an average course length as calculated by the University. E.g., if a part time course consists of six modules which the University states should take two years to complete, the “standard course length” will be deemed to be two years. Irrespective of the

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length of time a student takes to complete the six modules, the “standard course length” will always be two years.

In the above example, if each module has an associated fee of £600, the “normal annual fee” will be; £600 x 6 modules / 2years = £1,800 per year.

Once the “normal annual fee” has been calculated, in the case of part-time students who withdraw, it will be used as the annual fee in rules 1 to 5 above.

12.Payment of accommodation fees

Students staying at the Universities accommodation will receive a contract for the years rent. The student may either pay this immediately or they MUST setup a payment plan. See appendix four for further information.

NOTE: We reserve the right to charge an administration fee if your cheque or direct debit is rejected, see appendix three.

Details of your outstanding University debt can be obtained from student finance.

Please refer to Appendix Five “Methods of Payment” for details on how to make other payments.

Full details on accommodation terms and conditions are available from the Accommodation Office or by accessing ‘Contract and Regulations’ under the ‘Accommodation’ section of the website.

13.Payment of Library fines and charges

The Learning and Information Services (LIS) Rules and Regulations, Borrowing Regulations and Fines Policy 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.

Failure to return the items and/or pay the outstanding fines or charges will result in LIS forwarding invoices to the Finance department for further action under this policy.

14.Payment of other invoices

In the event of the student owing the University any other monies these will be invoiced and must be paid within 28 days.

Please refer to the Appendix Five “Methods of Payment” for details on how to make payment.

15.Overdue Student Debt Collection Procedure – Sanctions against Students

Whilst the procedure to collect monies outstanding is specific to each case the following steps will be taken:

1. Written reminder from the University2. Second reminder from the University, where by the following will take place

Application of sanctions which will include

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1. Removal of IT facilities i.e. network, email and Blackboard access2. Access to Library facilities denied3. Denied attendance to the graduation ceremony4. Withhold of the students award

3. Final demand from the University advising that the debt will be passed to the debt collection agency.

4. Referral to a Debt Collection Agency - debts will be recovered via the appropriate legal process

5. Once the debt has been paid or a satisfactory part payment plan agreed IT entitlements withheld in 2.1 above, will be reinstated within 24 hours of a working day.

Note: We reserve the right to charge an administration fee for returned cheques or direct debits, see Appendix Three

16.Advisory Services & Funding Advice

The University has a dedicated Advisory Service (SDAS) and they can help with a wide range of issues that students may be facing.

The University also has a Student Funding Team specifically to offer advice if a student is struggling financially.

These can be contacted by using the following link http://www.cumbria.ac.uk/Services/SDAS/contact_us.aspx

17.Commercial Debtors

The Universities payment terms are stated on all university invoices.

18.Overdue Commercial Debt Collection Procedure

Sending reminders to debtors is the sole responsibility of the Credit Control 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. First reminder from the University - sent once the invoice terms have been exceeded

2. Second reminder from the University – sent 14 days after the invoice terms have been exceeded

3. Final reminder from the University – sent 30 days after the invoice terms have been exceeded

4. Referral to a Debt Collection Agency – sent 60 days after the invoice terms have been exceeded

Invoices will be treated as individual transactions when reminders are issued. They will only be withheld from the debt collection process by finance staff. Finance staff will liaise with departments concerned i.e. hospitality and catering.

Queries on commercial debt should be made to the Credit Control Section.

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19.Debt Write Off Authority Limits

The Limits for the write off of any University Of Cumbria debt are as follows:

Invoices up to £500 Student Finance Team LeaderInvoices up to £5,000 Financial Ledger Coordinator Invoices up to £10,000 Head of Finance Invoices above £10,000 Director of Finance

A debt write off request (appendix six) must be completed and appropriately authorised.

Finance will liaise with the school or department prior to the write off being undertaken.

Appendix One – Direct Debit Form

INSTRUCTION TO YOUR BANK OR BUILDING SOCIETY TO PAY BY DIRECT DEBIT

Please fill in the whole form, and send it to:Finance Office (Sales Ledger). University of Cumbria, Bowerham Road, Lancaster LA1 3JD. Tel 01524 384309

Name(s) of Account Holder(s)

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Address of Account Holder(s).

Bank/Building Society Account Number University of Cumbria Student Number and Campus

Branch Sort Code Instruction to your Bank or Building Society

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Date

Please pay the University of Cumbria Direct Debits from theaccount detailed in this instruction subject to the safeguaurdsassured by the Direct Debit Guarantee. I understand that this instruction will remain with the University of Cumbria and if so, detail s will be passed electronically to my Bank/Building society.

Name and full address of your Bank/Building Society

To the Manager Bank or Building Society Signature(s)

Address

Post Code

Banks and Building Societies may not accept Direct Debit instructions for some type of accounts

Student Name

Please tick to indicate what you are paying for:

Tuition Fees Accommodation

Appendix Two – Tuition Payment Plan

Payment Plan Open to Full Time Undergraduate Students (UK & EU)

Up to six equal instalments. The number of instalments depends on when the payment plan is setup. The table below shows the number of instalments available.

Month Plan Setup

Dec Jan Feb Mar Apr May

Instalments Offered

6 5 4 3 2 Not Availabl

e

All payments will be taken from the first working day of the month.

Payment Plan Open to Postgraduate Students (UK & EU)

Up to eight equal instalments. The number of instalments depends on when the payment plan is setup. The table below shows the number of instalments available.

Month Plan Setup

Nov Dec Jan Feb Mar Apr May June

Instalments Offered

8 7 6 5 4 3 2 Not available

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All payments will be taken on the first Friday of the month with the exception of January which will be the second Friday of the month.

Payment Plan Open to Part-Time Students (UK & EU)

Part-time students can pay by direct debit through the duration of the course. Please contact student finance for more details.

Appendix Three – Administration Fee Charge

The University of Cumbria currently impose a £10 administration fee for all rejected cheques and direct debits.

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Appendix Four - Accommodation Payment Plan

Payment Plan Open to Postgraduate Students

The cost will be spread over eight equal Direct Debit instalments, starting from November.

All payments will be taken on the first Friday of the month with the exception of January which will be the second Friday of the month.

Payment Plan Open to All Other Students

The cost will be spread over eight equal Direct Debit instalments starting from October.

All payments will be taken from the first working day of the month.

NOTE: Any prepayments will be deducted from your final direct debit instalment.

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Appendix Five – Method of Payments

The following methods of payment are available as follows:

Credit or Debit card – at your student finance office or by calling student finance on the telephone numbers below:

01524 385688

Bank Transfer – contact student finance for details

Cheque – by sending the amount due via a cheque drawn on a UK bank account or a sterling bank draft and made payable to the ‘UNIVERSITY OF CUMBRIA’. Please ensure the students full name, student number (if known) and course/ programme of study is written on the back of the cheque. The University will issue a receipt for monies paid if requested.

Cash – in person at any finance office

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Appendix Six

Student/Customer Debt Write Off Request Form

Students/Customers Name  

Students/Customers Address  

Students/Customers UoC Number  

Total debt (to be written off)  

Reason For Request: (Please attach any supporting documentation)

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Signed Date

Finance Only - Reason for approval/rejection  

   

Signed Date

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