I. Scope of Procedure
This Procedure shall be used for all College non-student accounts receivable. Accounts receivable or uncollected billings that may be submitted for collection include, but are not limited to: salary over payments, contract work completed by the College for which the College has not received payment, fees owed to the College, deposited checks returned unpaid for insufficient funds, and nonpayment for goods or services purchased from the
College.
II. Age of Accounts and Collections of Past Due Billings
A. Current: An account that is invoiced but not due. For example, an account is invoiced April 1 but not due until April 30. The period from April 1 through April 30 is considered current.
B. 1-30 days past due: In the above example, this period is from May 1 to May 30. The account is considered 30 days past due after May 30. The College will mail the first past-due letter (demand letter) to the debtor; make phone contact; and receive a promise to pay.
C. 31-60 days past due: In the above example, this period is from May 31 to June 29. The account is considered 60 days past due after June 29. The College will mail the second and final demand letter to the debtor and send a confirmation letter for repayment.
III. Assessment of Late Fees
If, after thirty (30) days, there is no satisfactory response to the letter, the College shall apply a one-time late payment penalty fee of ten percent (10%) of the balance due (rounded to the nearest whole dollar).
IV. Collection Techniques.
A. If, after sixty (60) days, there is no satisfactory response to the second letter, the College shall:
1. Refer the matter to one of the State approved collection agencies; and
2. Refer the matter to the North Carolina Department of Revenue pursuant to the Set-off Collection Act and the State Employees Debt Collection Act.
B. The College reserves the right to take all appropriate legal action to collect the debt.
C. If the debtor is paying a debt in periodic payments satisfactory to the College, the account may be retained until the account is satisfied.
V. Use of Late Fees
Any funds the College accrues as a result of late fees shall be used as follows:
A. Applied towards any fees incurred by the College for the collection effort;
B. Student aid; and/or
C. Other expenditures of direct benefit to students.
Adopted: January 9, 2019