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UCM focuses on collecting on debts owed by students
[June 26, 2012]

UCM focuses on collecting on debts owed by students


WARRENSBURG, Jun 26, 2012 (The Daily Star-Journal - McClatchy-Tribune Information Services via COMTEX) -- The University of Central Missouri contracted with three agencies to collect nearly $8 million in accounts receivable.

UCM Vice President of Finance John Merrigan recommended the Board of Governors approve one-year contracts with Delta Management Associates from Chelsea, Mass., and Enterprise Recovery Systems from Oak Brook, Ill., as "first placement" collection agencies. Reliant Capital Solutions from Columbus, Ohio, will be the "second placement" collection agency, which is used when the debt cannot be recovered by first agencies.



Contracts take effect July 1.

Merrigan said the amount of accounts receivable is increasing.


In 2007, the university wrote off more than $1 million in bad debt, Merrigan said. In 2011, the university wrote off $892,000; with more than $2.1 million in bad debts placed with a collection agency that charged $241,000.

Merrigan said a student's account is placed on hold when 60 days past due.

UCM President Chuck Ambrose said the issue is not just getting a student to pay the bill.

"It is to get them to stay in school and get a degree. If they do that, they will pay their bill," Ambrose said.

Merrigan said the university tries to collect the account balance by contacting the student by mail and phone, face-to-face meetings and holding transcripts and diplomas.

"If internal efforts fail, we turn it over to a first placement agency and then to a second placement agency," he said.

If all efforts fail, the state can divert state income tax refunds from debtors and forward the money to UCM.

Collection fees for Delta Management Associates and Enterprise Recovery Systems are 22 percent.

Reliant Capital Solutions charges 29 percent.

___ (c)2012 The Daily Star-Journal (Warrensburg, Mo.) Visit The Daily Star-Journal (Warrensburg, Mo.) at www.dailystarjournal.com Distributed by MCT Information Services

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