What is the effect of Collection Agency Placement?
If the past due account holder cannot be reached and/or a satisfactory payment plan arranged, the account is then referred to a third-party collection agency to pursue collection efforts on behalf of the University. Agency placement is not a good scenario for any account holder because the consequences extend well beyond the University indebtedness. Accounts placed with a third-party collection agency may be reported to the credit bureaus as allowed by the Fair Credit Reporting Act (FCRA). This means that not only will account holders be restricted from registering for classes and requesting transcripts, they may also be adversely impacted when trying to apply for a loan, rent an apartment, etc. It is very important that account holders pay the University debt timely and responsibly so that the third-party collection scenario can be avoided.