Schools are can sometimes face very awkward situations where a family falls behind in their school fees. Given the unique relationship that schools have with their families, it is not uncommon for the debt to be deferred and paid over a period of time through instalments. In most situations, this is perfectly fine. However, deferring a debt can in certain situations become problematic if the process is not managed properly. When entering into repayment arrangements, schools should ensure that they do not breach the provisions of the National Credit Code (the Code). Bespoke legal advice can assist a school by maximising its ability to recover outstanding fees whilst at the same time not falling foul of the Code.
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