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Debt on the books? LTHS hires collectors

LOCKPORT TOWNSHIP HIGH SCHOOL IS USING A COLLECTION AGENCY TO CHASE UNPAID FEES


LOCKPORT — With $302,000 in unpaid student fees this year alone, the Lockport Township High School Board is taking the ultimate step to recoup the money — it's sending the accounts to a collection agency.

"I hate it. I think it's terrible, but I don't know what else we can do," said Michael Petty, board vice president.

During Tuesday's board meeting, officials employed Transworld to send collection letters to parents in arrears, administrators said. Leaders hope to cut in half the debt owed to the district, said Richard Lesniak, LTHS business director.

This year, staff expected to receive more than $900,000 in fees, but has collected only 69 percent of that amount to date, Lesniak said.

At LTHS, students pay a flat fee that covers most expenses like books, consumable materials and activities, but does not include items like drivers education, a parking permit or lost-book replacement.

A fee waiver is available for low-income families.

The individual amounts owed by families range from as little as $2.60 to more than $1,000, Lesniak said.

Board members set the debt cutoff at $50 or more for sending someone's account to collection, a move that negatively affects a person's credit rating. The cost to the district is $9.25 per notice, Lesniak said.

Board President Audrey Manley said that the amount in unpaid accounts increases yearly and that it is unfair to parents who pay the fees to not try to collect money from the others.

"The majority of our parents pay and are responsible about it, and we have to respect that," Manley said.

Officials will start using the agency this year and will forward accounts to it after sending two notices. Manley said leaders requested that Transworld use a respectful — instead of a threatening — tone in its collection letters.

LTHS is not the first district to use a collection agency, and the practice is becoming more common, leaders said.

The Troy School District employs an agency that only receives payment when a collection is successful, said Al Gegenheimer, Troy's business manager.

The district does not recoup all of the outstanding money, but takes in more than it did before employing an agency.

"It has worked out fairly well," Gegenheimer said.

 


Last Update: 07/20/97

Copyright; 1998 
by TL Consulting Group - 
ALL RIGHTS RESERVED


Copyright; 1998 by TL Consulting Group - ALL RIGHTS RESERVED