The Times Australia
Small Business News

.
The Times Real Estate

.

Private schools taking no prisoners when comes to defaulting parents who don’t pay fees

  • Written by Media Release


Private schools are defaulting parents who fall behind in paying their children’s school fees at an increased rate according leading Australian consumer and financial law firm MyCRA Lawyers.

MyCRA Lawyers’ CEO Graham Doessel said over the past two years the number of clients who had judgments on their credit files put there by schools had spiked and with school fees being sent out this week those numbers are expected to climb again.

"Whether this is due to more parents being unable to pay the fees, or people checking their credit files and realising there is a default we are unsure, but schools putting defaults on someone’s credit file is something we didn’t see that often five years ago but now, it’s not unusual," he said.

Parents really need to be careful because these sorts of reports on your credit file will quickly cause problems in other parts of your life.

A lender that sees you can’t pay school fees will be quick to assume you can’t pay a mortgage, a credit card or afford to pay your phone bill.

Commonly it’s pride that gets parents in trouble because they're desperate to keep their son or daughter at a top school, and hope they can dodge and hold out till graduation. 

But they find out just because their son or daughter has left the school it doesn’t mean the fees don’t need to be paid. In fact, if the debts are unpaid and not in an arrangement, the child won't graduate at all.

"A school usually calls in debt collectors first which is harrowing enough, but a default or serious credit infringement on your credit file will stay there for up to 7 years," Mr Doessel said.

Some of the school’s we’ve had to negotiate with on behalf of clients include the best of the best, and you’d think these school’s would have enough money to give parents in financial stress some wiggle room, but that doesn’t appear to be the case.

“I guess they probably get frustrated when they see a family arguing hardship but they do school drop in the BMW or Range Rover,” Mr Doessel said.

We also see plenty of affordable private schools defaulting struggling parents. I would imagine these schools probably need the money, so have no choice but to chase fees.

It’s important to note many parents sending their children to private schools aren’t what you’d classify as rich, they are teachers, tradies, bank workers and the like.

But you only have to look at the civil court lists to see schools suing parents all over the country.

While we can often remove these defaults and Judgments, it’s better if you don’t get them in the first place. The advice we have is what we tell anyone dealing with a creditor they can’t pay, Communicate and be upfront.

With school starting back next week, the school fee bills will be starting to lob into people’s inboxes, it’s important to deal with them and work out a budget moving forward.

“Some schools will even offer a payment plan that allows you to lower you repayments but continue to pay your child’s school fees after they leave, but it’s important to reiterate, that just because your child has left a school, you haven’t been freed of the debt incurred while they were there," Mr Doessel said.

Credit defaults can appear on people’s files without their knowledge, in fact 3.8 million Australians have defaults they don’t know about.  The best way to check your credit file is to request a copy of your file at www.FreeCreditRating.com.au.

SME Business News

Albanese government looking to acquire Rex Airlines if buyer can’t be found

The Albanese government will on Wednesday announce it is willing, as a last resort, to purchase the collapsed Rex Airlines, in its latest bid to prop up aviation services to regional and remo...

The Legal Battle Against IP Theft: What Businesses Need to Know

So you've formulated that million-dollar idea and you're ready to take your business to the next level. You were so excited to publicize your supposedly next big thing that you went on TikTok...

Top 20 SEO and Guest Post Services in Wyoming Helping Brands Expand Their Reach

Today’s business needs to have strong online visibility to grow and reach more customers. Guest post services and SEO services make it easier for the brand to rank higher on their search engine...

Everything You Need to Know About PLR Digital Products to Resell for Maximum Passive Income

In the ever-evolving digital product world, the concept of Private Label Rights (PLR) has emerged as a lucrative opportunity for entrepreneurs who aim to generate passive income. PLR digital prod...

Property Times

Why You Need an Expert Electrician for Your Business’s Electrical Upgrades and Repairs

When it comes to maintaining and upgrading your business’s electrical systems, it’s essential to call in a professional. Electrical work in any commercial setting requires the expertise of a qualified electrician in Newcastle. Whether you're planni...

Why Is It Crucial to Have a Building Inspection Done Before Buying a New Home?

Purchasing a new property is a big financial decision that can impact your future for years. Whether you are a first-time buyer or an investor, good or bad, it is essential to ensure the property is in good condition. A building inspection is an af...

Floor Tiling: Choosing the Right Tiles for Every Room

Choosing floor tiles is more than just grabbing the first design that catches your eye at the showroom. You need to think about how the floor tiling option will fit into your space, how durable it is, and whether it’s safe for that particular area...

Yes, Australia needs new homes – but they must be built to withstand disasters in a warmer world

Australia’s housing crisis has created a push for fast-tracked construction. Federal, state and territory governments have set a target of 1.2 million new homes[1] over five years. Increasing housing supply is essential. However, the homes must ...

Food & Dining

7 Tips to Brew Perfect Mullein Tea Every Time

Brewing the perfect cup of mullein tea can often feel elusive, especially with all the conflicting advice available online. You might struggle with weak flavour, overpowering bitterness, or even the challenge of floating leaves in your cup.  Fortu...

Fresh Ideas for Celebrating the Year of the Snake

The Lunar New Year is here, and with it comes the Year of the Snake—a time for fresh beginnings, family connections, and, of course, delicious food. As celebrations kick off, Australian families are turning to summer’s bounty of fresh produce to ...

Drop of Sunshine | The perfect gift for that special someone this Valentine’s day

Drop of Sunshine: A Toast to Women, Our Connections & The Stories That Bring Us Together Treasury Wine Estates (TWE), one of the world’s leading wine companies, has launched a new line of premium wines,  Drop of Sunshine, in partnership wit...

Delicious and Healthy Vitamix Recipes for Optimal Nutrition

🍏🥦 Enjoy tasty Vitamix recipes packed with nutrients for optimum health. Healthy eating 🥕🍓 made fun & delicious! 💪🍹 #Nutrition #VitamixRecipes Healthy Eating and Optimal NutritionRenowned for its versatility and unparalleled blending capabilitie...

The Times Features

Why You Need an Expert Electrician for Your Business’s Electrical Upgrades and Repairs

When it comes to maintaining and upgrading your business’s electrical systems, it’s essential to call in a professional. Electrical work in any commercial setting requires the ex...

Why Is It Crucial to Have a Building Inspection Done Before Buying a New Home?

Purchasing a new property is a big financial decision that can impact your future for years. Whether you are a first-time buyer or an investor, good or bad, it is essential to en...

Online Application for Sick Leave Certificate: Understanding When and How to Secure One

A sick leave certificate is an official document issued by a healthcare professional to verify an individual's inability to attend work due to illness. It typically includes the ...

A No-Fuss Guide to an Effective Beauty Routine

Taking care of the skin and appearance need not be complicated; it need not even consume your hours of time. Smart and simple approaches can give one that glow and fresh look witho...

Safe & Effective Tattoo Removal in Auckland – What You Need to Know

If you're looking for tattoo removal in Auckland, modern laser technology offers the safest and most effective way to fade or completely remove unwanted ink. Whether it's an outd...

Fleece-Lined Tights vs. Regular Tights: What’s the Difference?

When temperatures drop, choosing the right pair of tights can make a significant difference in comfort, warmth, and durability. Whether you wear tights for fashion, work, or outdoo...

Business Times

Albanese government looking to acquire Rex Airlines if buyer can’…

The Albanese government will on Wednesday announce it is willing, as a last resort, to purchase the collapsed Rex Airline...

The Legal Battle Against IP Theft: What Businesses Need to Know

So you've formulated that million-dollar idea and you're ready to take your business to the next level. You were so excit...

Top 20 SEO and Guest Post Services in Wyoming Helping Brands Expa…

Today’s business needs to have strong online visibility to grow and reach more customers. Guest post services and SEO servi...

LayBy Shopping