School Struggling To Collect Pushes Students To The Hallways

Students in a particular area of New Zealand, Whangarei might be forced to learn in a hallway or refused entry to particular subjects if their parents do not pay compulsory course fees. Whangarei Boys High School headmaster Al Kirk says about $10,000 is owed from the previous year.

Unlike school donations which are voluntary, course fees are mandatory for subjects with considerable take-home items, like technology or photography. The school’s plan is to single out students who have not yet paid, teaching them in a hall until the debt is settled.

Not surprisingly, the plan has been met with condemnation from the New Zealand Education Ministry, but headmaster Kirk alleges that parents who are “honestly” unable to pay fees can speak to the school about payment options, and after all, a budget group is available to give parents advice.

But Mr. Kirk feels as though the problem is more from parents who refuse to pay because they think education should be free of charge- high school education has not been free since the 1960s. The school used the same plot in 2008 and 90 to 98 percent of parents paid immediately, according to Kirk.

Without a doubt, this plan has its critics. “The fact that this school would single out childrenchildren who have nothing to do with their parent’s financesit’s unthinkable” laments Jacob D. Almeida, education expert.

Local critics have made a point to say that there are many ways to collect the legitimate charges: re-payment plans, or as a last resort, a third party debt collection agency could deal with the parents who won’t pay. Headmaster Kirk alleges that it wouldn’t be cost efficient to use a debt collection agency.

This problem is also an issue for other schools in the area as well. One local school is considering not allowing a student to take a course that their parents cannot pay for. “It’s a big issue that needs to be critically and carefully addressed,” says Jacob D. Almeida. “We don’t do that lightly.

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What To Do When A Collector Calls

If you owe money to a creditor debt collection agencies can report your debt to credit bureaus, file suits against you, and should be taken very seriously. The best way to protect yourself and your finances is a methodical approach. First, know why you are being contacted. Know what the debt is from and exactly how much it costs.

Ask for the name of the person calling, the agency, the creditor, and the agency’s address and fax number. You have the right to tell a collector over the phone that you want all future contact to be in writing. Follow up all requests with a written request.

Keep in mind if you tell the collector not to contact you at all it is allowed to contact you once more to let you know how it plans to proceed. Another request that can be made is that you are the only person that could be contacted. It might be savvy to keep a file with dates and details of phone conversations and when you send or receive letters.

If you do send any written correspondence to the collections company do this by Certified Mail, Return Receipt Requested. This guarantees that the letter reached the collector, giving you a signed receipt as proof. If you work out a re-payment plan over the phone, ask for the terms of the plan in writing. Any promise to remove or adjust credit history should also definitely be documented.

Make sure that you pay the right party; payments should be made to the debt collector, not the creditor, unless otherwise instructed to do so. Carefully look over the amount you are being asked to pay. Get an assessment of any interest, fees or charges that have been added.

If you feel like your collector is being abusive or hostile, make sure that you mention it to the agency and keep this complaint on file. The last thing to keep in mind is don’t ignore a collector. Even if you feel that the debt is not yours; they will continue to call and it may mean more trouble and time in the long run.

Mallory Megan works for a debt collection agency. Also she composes stories on business, finance, consumer spending and collection agencies.

Spanish Debt Collection Company Humiliates Debtors Into Paying Up

Would you be mortified if a man in a tuxedo and a top hat followed you into a restaurant and silently joined your lunch date? How about a three men with more to love dressed up like superheroes begging your neighbors for donations to help you in your financial situation?

In Madrid, make sure your bills are paid or you might be visited by one of these colorful characters. The recession has slammed Spain. Official figures show that the unemployment rate has sky rocketed, reaching 19.3 percent. That\’s one of the highest rates in Europe. Around four million people are not working. That\’s the same number of jobless people as France and Italy put together. One business is flourishing however, that business is debt collection.

Spanish law is pretty lax when it comes to debt payment. They allow 95 days to settle bills unlike the 30 in other parts of Europe. This, coupled with the fact that Spanish courts give the matter low priority put collection agencies in high demand.

One company, El Cobrador del Frac – which translates as \”The Debt Collector in Top Hat and Tails\” – has more than 250 collectors, and an equal number of investigators and secretaries.Their goal is to work out some deal and retrieve money, not to run after people without the means to pay.

For them, new business is coming from constructive trade which is suffering from a huge slowdown. Homeowners owe money to contractors, contractors owe money to construction companies, construction companies owe equipment makers, and so on and so forth.

Last year, the agency had a wedding company contact them over a couple who did not pay the $83,000 bill for their extravagant wedding. The agency obtained a wedding guest list and began calling up guests one by one on the phone and asking them if they had the chicken or the lobster, and then asked them where to send the bill. Eventually the shamed couple paid up.

These ideas are quirky, (I guess that is one way to describe it) but they will not be this effective in times to come. In this time of economic crisis, too many people have debts and they honestly can\’t pay. And to these people, it doesn\’t matter how much you humiliate them.

Mallory McGuinness works for a debt collection company. Also she writes stories about business, finance, consumer spending and debt collection. Get a totally unique version of this article from our article submission service