Expert: Chris Ebert - 7/20/2009

Question
Hi Chris I have a question:
We run a 9 month internship program in our church in which the students who are enrolled must pay each month (for 9 months). We have them sign a contract which states the monthly payments terms. There are students who to this date they have not paid.We have called them and asked them to pay what they owe, with no luck. What steps can we take to collect from them?

Answer
Fabs,

Since you are the original creditor in this case, you are exempt from the Fair Debt Collection Practices Act (FDCPA) in collection issues.

I would start collections with a note mailed to the home. Since it would be coming from the church, hopefully they would be more likely to open it. I always start a collection routine the nicest way I can. People are more likely to pay when asked nicely. After 2 reminders in writing, I would follow up with a friendly phone call. Find out why they have not sent money. If it is an issue of not having it, work with them.

Finally, if they just refuse to pay, then you are stuck with the decision to deny that child access. If you want to take collections further (like a lawsuit or sending out to an outside collection agency) then decide if it is worth it since this is a fellow church member.

On a final note, are you sending home monthly statements or payment reminders with children? Are you mailing them? Even if people sign a 9 month contract, they may be waiting for statements or reminders.