Incasso LLP has forged dynamic partnerships with a number of Education Institutions in recent years. To demonstrate how Incasso LLP has become a supplier of choice for debt recovery for LUPC member institutions, the following case-study was compiled with the co-operation of London Metropolitan University.

London Metropolitan University came together as a result of a merger between two smaller
universities and as a result of this, various debt collection firms were 'inherited' from both
institutions. With this in mind, they decided they would like to reduce the number of firms and look for a partner who would offer them a 'best value' package covering all of their debt collection and trace work to ensure the process was more efficient.

Although the University had a team of in-house Credit Controllers who were collecting 40% of its debts over 12 months, they were finding it difficult to contact student debtors within their normal working hours and were also finding that their written correspondence was not gaining the desired results.

The University's Senior Credit Controller, Alistair Dyer recalled: "We were well aware of the fact that students tend to change address regularly and are normally available more in the evenings and at weekends, which is why we were finding it difficult to contact them for outstanding monies. We therefore, made the decision to concentrate our in-house resource on 'current year' income stream and decided that the intervention of a third-party would help in provoking the debtor to make a payment or at least take action to resolve the problem."

With this in mind, they set to work on finding a suitable debt recovery partner and started the ball rolling by asking other London Universities if they were looking to tender their equivalent work in order to look for further possible savings. University of East London responded positively and subsequently they decided to collaborate in a full tender exercise. The most convenient route for doing this was under the auspices of the London Universities Purchasing Consortium which meant that economies of scale could be offered to bidders and an advantageous contract would be available to other institutions within the LUPC.

As the service is described as "bailiff services" under the Public Services Contract Regulations and is therefore a "Part B" service it did not need to be advertised in OJEU, although the tender process was otherwise carried out according to OJEU rules. The tenders were evaluated according to the suppliers ability to undertake all of the work tendered for, quality of service, financial stability of the company and of course, pricing. After drawing up a short list and undertaking site visits to the firm's premises, it was finally agreed by the panel that the contract should be awarded to Incasso LLP.

At the time of appointment in February 2008, the University had 5000 debtors owing tuition fees, 241 owing unpaid rent and a further 465 customers in arrears on commercial debt. This was an accumulated debt over the previous six years and with their in-house team collecting 40% of its debts over 12 months, they were expecting at the very least for this to be matched by Incasso LLP.

"Initially, we were expecting at least the same collection rate from our new partner and despite our initial slow start in sending through debts after the tender was finalised Incasso are currently matching our previous rates," said Alistair. "As our relationship has developed, we are certain that future collection rates will improve, as our debts are now being referred to Incasso on a more formal basis."

With Incasso LLP, having collected £600k so far, the University has now been able to release their more experienced Credit Controllers to specialise in complicated debt cases. Not only that, but the University has developed relationships with individual agents at Incasso LLP, which has led to a more efficient service being provided overall.

For further information on student debt recovery, please contact Richard Powell.