Q: Can a party (private elementary school) legally forward a debt to collections before sending you an invoice?
My daughter went to a Montessori school, but left two years ago. We just received notice we owed more than $5,000 in tuition (some more than 3 years old). The school was notoriously bad at invoicing parents more than a year late. We requested details on this debt, but then received a letter the following week (but dated the day after we received the call in regard to the debt), that the debt was forwarded to a collections agency. We were looking to pay the entire debt, but are now reviewing it more closely, especially the portions greater than 3 years old. Our other concern is our credit rating, which has been perfect, up until this point.
A: Generally yes, this can happen. Contracts have a three year statute of limitations and a review of the invoices and the facts would be necessary to determine if the debt was beyond the statute of limitations. This is a defense you will have to raise, so they can still proceed to collect the debt. If the debt is still within the statute of limitations, then you would be responsible for tuition incurred while your daughter was a student at the school.
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