Debt owed by a pledge and Collections
 

I pledged a fraternity for an entire semester, and became a neophyte. The chapter balled me, (for not paying any dues and other reasons... I was about to drop as a neophyte anyway, I didn't have the money).

Now the fraternity is telling me I still owe them $600 of the pledge semesters' $755 (the extra $155 is the initiation fee which I obviously won't be there for).

They have told me that if I don't pay before December 10th, they are sending my debt to a collection agency. I believe that this chapter uses the Omega system by the way... if that makes any difference.

Do they have a right to do this? CAN they do this? I refuse to pay for something that I am not a part of, but I am seriously worried about having my credit ruined by some sleezeball collection agency. What information does this chapter need about me to send my debt to a collection agency? What can I do?

Hopefully other people can help out here, but I believe they can take you to collections depending on the verbage of any documents you signed. Organizations have their pledges sign some sort of contract at the beginning of the new member process that outlines requirements that you have to agree to, which includes paying dues. So if you signed it - it is legal and binding.

ONE POST IS PLENTY.

I say you owe it because you were a part of it for the semester. Personally, I think they should have dealt with your non-payment earlier in the semester, but they didn't. If they choose to go through a collection agency -- that's their call.

If you got a credit card at the beginning of the semester and used it for 3 months and then decided -- I don't want that VISA anymore (or, VISA decides they don't want you!), you are still obligated for the charges during the time you were a "card-carrying" member.

Sorry for the hijack, but ...

What a GREAT analogy! I am going to use it if you don't mind. I am financial advisor for a chapter, and you have no idea how many parents want to get their money back when their daughter decides to quit. I think this is a terrific analogy to the GLO due situation. Thanks!!

OK... end hijack.

I don't mind at all -- I'm honored. I was a local advisor back in the day & used it then too!

Just like in any business, you are required to pay them for services performed. They would have incurred costs (national, local, university) and they passed them on to you. It's legal.

You could ask to see a detailed explanation for the charges billed to you. Ask to see the paperwork you signed. I think you do need to at least be sure that what they charged you was the correct amount, that there aren't any charges you could object to, etc.

After that, I think you need to pay whatever it is you truly owe.

You were a neophyte for a semester, you agreed to pay dues during that time, you then didn't hold up your end of the bargain.

I was my chapter's treasurer for a year. I was also the financial adviser for a time. We did use OmegaFi, and they will come after you and they will get results. You will end up paying this one way or another if you truly owe it.

It's just do you want to pay now? Or do you want to pay OmegaFi 30% extra (or whatever their fee which you will owe according to the contract they use as I recall) to collect from you? Your credit will be wrecked as well.

If nothing else, you should pay because it's the honorable thing to do.

Kevin is right. The OP needs to realize that the chapter was probably already billed by the national organization. In the case of my own org, paperwork is turned in within 48 hours of accepting a bid, and the chapter is billed at that time for new member fees. In this case, it sounds like the chapter was already billed for initiation and other new membership fees on your behalf. If you can confirm that they have been billed, then you owe it.

That said, I think you could have an argument for them dropping you after the initiation fee due date, if was recently or while they were determining whether to terminate your pledgeship. If you had dropped, then I would say that you definitely owe the money.

You owe the money for services received! You should have dropped when it became apperent that you could not afford it!

I also fault the Fraternity for letting you go this long without paying them unless you were not truthful with them!

My organization has a policy where a member is supposed to be automatically booted if they're 90 days late.

In practice, this doesn't always happen, but it's sound policy. Omega Fi allows the treasurer to keep tabs on how everyone is doing. I'd make it a point to let everyone know how they were doing -- when money did not come in, I'd be calling people, calling their parents, calling them just about every day until that stuff got paid.

I never had to go after anyone's badge because I always kept our A/R current.

Being treasurer is something that is a 7 day a week job. It's not like other officer positions where you are only "on" on the days you have activities. The treasurer needs to know at all times what's going on in their organization.

That the OP fell behind an entire semester is 100% the OP's fault. I hope that any chapter treasurer who reads this can at least understand that this is a sort of situation which is preventable. It is never fun having to send someone to collections, but it happens. Most of the time, it can be avoided if the treasurer is proactive.

But really.. .OP... your organization gave you 4 months to pay $755. That's not asking a lot. I'll bet you spent at least that much on beer (or something else which you didn't need). The excuse that "I just don't have the money" is pathetic.

Like I said, the OP needs to do the honorable thing here -- not because he's afraid of having his credit messed up, but because he made a promise. That should mean something.

The treasurer told me that nothing has actually been paid on my behalf yet. He showed me the run down of fees, but nothing has actually been paid. That means I have a pretty real argument.

Just because their bills haven't come due yet, doesn't mean that yours shouldn't.

Your only argument is that you didn't really want to be there anyway (but you stayed) and that you didn't pay your dues earlier, so you shouldn't have to pay them now.

They should have collected from you earlier, but that doesn't get you out of your debt.

That would piss me off to no end if I were in your position! UGH! THAT's why I was never treasurer, lol.

That doesn't mean your national hasn't charged or won't charge the chapter. New members cost a lot of money -- insurance, fees and such. Further, you signed up and agreed to pay whatever fees the chapter charged. That's your responsibility.

If I had been the chapter treasurer in this situation, you'd already be with collections.

AHHHHH!!!!! YES, I agree 100%....I was FVP for 2 years and I'm now a financial advisor.....I LOVE it.

And to the OP.....I dont know if they can force you to pay the initiation fees. However, depending on what the breakdown of the other items are - monthly dues, semi annual dues to FHQ, etc etc, they could send to collections, and probably will. If they get you to pay initiation though, that's lame.

If you cant afford or couldnt afford that amount at one time why didnt you talk to the treasurer when you first pledged about setting up a payment plan so you could pay what you owed over the course of the semester instead of all at once? Most chapters I would think allow for this.

Be a man, and pay what you morally and legally owe. If you don't have the money to pay in full right now, set up a payment plan.

You used the fraternities' resources on a chapter level for an entire semester (which is payable and due to the National or International org).

I believe in Karma. Pay your debt, and everyone can move on.

If were a neo for one semester then you should pay. Im sure this was said to you in begining," This a business". Frats and sororities are not hobbies. Take responsibility for your actions.