4.0   Collection of Past Due Accounts Receivable

Each campus is required to include in its credit and collections business process the overall procedure and timeline that is followed on the collection of all Accounts Receivable.   

4.1   Collection Efforts

The following minimum collection efforts will occur for Past Due Accounts:

4.1 a.     Dunning notices will be sent electronically or via U.S. mail.

4.1 b.      A Financial Hold will be placed on the record of any student who has a Past Due payment and the student will be notified of such.

4.1 c.       Phone calls or e-mail communications will be placed to debtors.

4.1 d.      Payment plans will be offered to assist in the collection of Past Due items.

4.1 e.       After the above collection efforts have been exhausted, the account will be reviewed for further action. The oldest charge will generally determine the collection action, which may include the filing of a lawsuit in small claims court, referral to an outside collection agency with notification to credit reporting agencies, litigation, or tax offset recovery through the Indiana Department of Revenue. Purdue University may assess interest charges, late fees, collection fees, court costs and/or attorney fees associated with the collection of Past Due Accounts Receivable as allowed by applicable laws and the sales contract covering the good or service. In the event efforts to collect Past Due Accounts Receivable are unsuccessful, bad debt Write-Off procedures are outlined in this operating procedure.

4.2   Interest, Late Charges and Collection Costs Recovery

In order to enhance the collection of Accounts Receivable balances, each campus may implement procedures to assess default interest, late charges and collection agency fees recovery, as provided by law or as permitted by an applicable written contract. Any department or unit desiring to implement such charges is required to first confer with SRBS. SRBS will confer with the Office of Legal Counsel to ensure that such assessments are in compliance with Indiana Code and other applicable law. All interest, late charges and collection agency fees recovery assessed under this operating procedure must be included in each campus’s credit and collections business process.

 

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