It is a massive challenge for schools when a family is not able to meet school fees. We got some input from Collect4U, who has had more than 18 years’ experience in this department.
They shared some of the knowledge they gained in assisting schools in their endeavour to recover outstanding fees from defaulting parents. If you need some direction, we recommend you follow these next three steps to regain your school’s financial position.
Step 1: Establish a collection process
Your process must conform to the parameters as stipulated in the South African Schools Act (SASA) and should have time frames to determine the next steps and when to hand over to a third party to assist in the collection process.
Step 2: Documentation
In order to obtain a default judgement, the courts require the following documentation:
- The enrolment form
- Signed Annexure A in the Exemption Regulation – both the principal and parent need to sign
- School statement reflecting what is owing by the parent
- Copy of the minutes of the budget meeting where the school fees and the exemption process for the new year was set. They also need a copy of the letter which was sent to all parents informing them of the resolutions taken.
- Proof that a final letter of demand (referred to as a Section 41 letter) was sent to the parent. This can either be a registered post slip or a signature of a parent acknowledging the receipt thereof.
Although the courts are meant to be uniform as far as their rules and standards are concerned, it is our experience that each court has different requirements which we are fully au fait with.
Step 3: Third-Party Collector
It is extremely important that the school uses a third party collector that understands the SASA which governs the collection of public school fees.
Collect4U has an in-depth knowledge of the SASA and offer their services on a “no success, no charge” basis, charging 15% on all monies collected.
Their services include both soft collections, where they attempt to contact the parent both telephonically and in writing to try and get them to pay, and hard collections where they use the full legal process (summons, default judgement, warrant of execution, etc.). These costs are for Collect4U’s account should the debtor not pay.
A monthly report, which is normally sent out in the first week of the following month, details what has transpired over the past month. This ensures that you are provided with regular feedback of your entire portfolio.
How to get in touch with Collect4U to help you obtain outstanding school fees
We hope you found this information valuable for your school. Collect4U is a Top Rated Company on SchoolAdvisor, and have a vast knowledge of debt collection – attributed to 18 years of being in the industry.
Fill in your details below if you would like them to contact you to help you obtain outstanding fees from defaulting parents.