Micro-failures
I have a feeling this kind of thing will be rather common throughout the land in the coming months.
Collection agency's bankruptcy leaves 5 N.J. Catholic schools $1.1M shortSo the families apparently paid their tuition, but most of it just...disappeared. The article provides no clue as to what really happened, but presumably the service was leveraging the tuition payments somehow and the investments blew up. While markets are hot, this kind of scam is easy to pull off, but no more. If you're using any kind of service to make payments, be wary. I wonder how safe the bill payment services banks use are?
by Kristen Alloway/The Star-Ledger
Monday January 26, 2009, 6:17 PM
Five Catholic schools in New Jersey are scrambling to make up $1.1 million in missing payments after the agency that collects their tuition filed a bankruptcy petition earlier this month.
Tuition Program Inc. (TPI) filed a bankruptcy petition Jan. 12 claiming that it owed $3.6 million to 14 Catholic schools -- including three schools in Morris, one in Somerset and one in Middlesex counties -- and $867,000 to Wachovia, according to the document. The Livingston-based company had assets between $500,000 to $1 million, according to the filing.
posted by ziel | 1/27/2009 10:49:00 PM
1 Comments:
My kids are in a private school. I had the principal purchase a debit/credit card machine. All tuition payments are made directly to the school via check, money order, debit card or credit card.
Usually institutions that collect money on your behalf charge 5% to 10% of the funds collected. Its a whole lot cheaper to collect on your own, than to ask someone to do it for you. (Credit Card swipe machines run about 2.1% per transaction for small volumes and about 2.5% for larger volumes).
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