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Write Off and Debt Set Off Procedures

Write Off and Debt Set Off Procedures

An account can be written off after it has been returned by the collection agency as uncollectible. This is normally after 1 year of no activity or no contact with the debtor by the collection agency. However, the University reserves the right to return accounts to the collection agency should the customer status change.

The collection agency status report is reviewed after March month end to determine which accounts to ask the agency to return to Virginia Tech. If the agency has made contact or heard from the customer, we may choose to leave the account active. If not, we ask the account be returned.

Once the account has been returned, the term code of the charge in Banner is changed from 000099 to 000098. This will remove the collection costs and put the account into a pre-write off status. Once the requested write-offs are approved, the accounts are then put into term "000097". The Department of Taxation will notify Virginia Tech of any claims available to us.

Once Virginia Tech has been notified of a claim, a letter is sent to the customer notifying them that a portion of their tax return has been taken to pay a debt owed the university and the change is placed into term "000095". The customer has 30 days to dispute the action. If none is taken, the DOT is notified that the claim is valid and Virginia Tech will receive payment for that amount.

If a claim is disputed, Virginia Tech will talk with the customer to discuss the dispute. If the claim is not valid, DOT is notified to cancel the claim and Virginia Tech will make the necessary adjustments to the customers account. If not, DOT is notified the claim is valid and payment will be sent to Virginia Tech.

Copies of all action and notification sent to the customer are kept on file until the account is paid in full.