Private school fees in arrears? Beware the consequences, parents warned
Did you know private schools can legally attach your assets to debt incurred through unpaid school fees?
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Lester Kiewit speaks to Neesa Moodley, Personal Finance Editor at Daily Maverick, about the consequences of falling behind on school fees.
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Times are tough for many South Africans.
For some living paycheck to paycheck means sometimes having to prioritise which debts are more important to pay off.
One doesn’t want to risk losing a home or a car due to missed installments payments, but what about losing assets because you've failed to keep up with school fees?
Private schooling is not necessarily the domain only of the well-to-do, with many families making huge sacrifices to send their children to private schools.
But people's financial circumstances can change suddenly and without warning, leaving them unable to keep up with payments.
Schools rely on the fees to remain operational and they are entitled to avail themselves of the law when payments are not made.
The consequences for falling behind on school fees can include the school attaching assets in the event of defaulting on payments.
Moodley says it's perfectly legal.
"The school has every right to pursue and attach your goods if you fail to pay your fees."
Neesa Moodley, Personal Finance Editor at Daily Maverick
"Firstly, the school would send you a letter of demand telling you they intend to sue, as well as the time period in which you can make a payment to avoid that happening."
Neesa Moodley, Personal Finance Editor at Daily Maverick
Next, says Moodley, the school would send a summons.
"Which is a document that gets issued by the court and delivered to you...you have 10 days to file a notice of intention to defend."
Neesa Moodley, Personal Finance Editor at Daily Maverick
Failure to take this step allows the school to apply for a default judgment, which then allows the school to attach goods to the outstanding debt.
"This would absolutley be the last resort from the school's side...it's a very drastic step."
Neesa Moodley, Personal Finance Editor at Daily Maverick
Moodley says, it's also worth bearing in mind that the implications for the children can also be severe.
"They can be suspended or expelled if your school fees are unpaid."
Neesa Moodley, Personal Finance Editor at Daily Maverick
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