Accounts Receivable |
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Account Collections
Indirect Collection
Customers (non-student):
It is the responsibility of the department to initiate indirect collection activity by withholding further services or refusing to issue additional charge sales to delinquent accounts. As an extra incentive to promote payments, the Accounts Receivables Office assesses a 1% per month finance charge to the past due portion of all accounts.
Students:
The UR system interfaces with other ISU systems to ensure that outstanding UR charges upon ISU student accounts are settled at/prior to registration, graduation, receipt of either official transcripts or ISU refunds. The Accounts Receivables Office places a "hold" upon the ISU records of all students when the past due UR obligations exceed $25.00. Current students will have "holds" when their checks to ISU are subsequently returned by the banking system, even if the check was for less than $25.00.
Direct Collection
Regular Customers:
Fiscal responsibility falls on the Accounts Receivables Office with assistance from the selling departments. In order to facilitate the procedures, selling departments are asked to collect the Federal ID number for all regular customers as well as a telephone number. Billing statement messages have been designed to encourage payment. These messages begin printing on the second monthly billing statement mailed by the Accounts Receivables Office. When the customers are 45 days delinquent, they will be included on a list supplied to the selling departments. Selling departments should, at a minimum, cease credit services. The names of customers who owe $50.00 or more and are 75 days delinquent will be sent to the Iowa Department of Revenue to offset the charges owed to the University by any funds due them by the State of Iowa. Right to Cure letters are sent once a customer is 90 days past due and no match was obtained by the Iowa Department of Revenue. Collection placement of the total outstanding balance is made within 30 days of the Right to Cure letter.
Students:
Students not enrolled and having outstanding obligations are regularly monitored for placement with outside collection firms. Right to Cure letters are sent at 90 days past due notifying them of possible collection placement if payment of their delinquent charges is not received. At this point also, the names of customers who owe $25.00 or more will be sent to the Iowa Department of Revenue to offset the charges owed to the University by any funds due them by the State of Iowa. Collection placement of the total outstanding balance is made within 30 days of the Right to Cure letter. ISU will report the delinquency to the national credit bureaus.
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