Education Receivables Past Due Debt Collection

The Vendor is required to provide for a collection agency to refer their educational receivable past due accounts for collection activity.
- The estimated percentage of domestic accounts is 97.5% and the estimated percentage of international accounts is 2.5%.
- The average number of accounts to be assigned over the five-year contract period is approximately 2,000 – 2,500 with the average age of past due accounts being approximately 7-10 months.
- External collection contractor is estimated to be approximately $1,200,000 annually or close to $6,000,000 for the duration of a 5-year contract.
- Responsibility of the collection agency to ensure they are in compliance with all requirements and must obtain any special authorizations required when collecting on accounts in foreign countries.
- Disclose or threaten to disclose information concerning the existence of a debt known to be disputed by the debtor without disclosing that fact.
- Communicate with the debtor or any member of their family or household with such frequency or at such unusual hours or in such a manner as can reasonably be expected to abuse or harass the debtor.
- Threaten any action which the principal creditor in the usual course of his business does not in fact take.
- Claim, or attempt to threaten to enforce, a right with knowledge or reason to know that the right does not exist.