Can my sorority take my unpaid fees into collections?

Last fall, I decided to join a sorority as a Freshmen. I realized that it wasn’t for me and I wanted to out. I was never officially a member and I dropped out two weeks before initiation. Two months later, I’ve received emails from the headquarters of this sorority threatening to take my remaining fees into collections if I don’t pay up and that I signed a contract agreeing to this.

I’ve done some research about what sororities can and cannot do, and luckily I’ve found a loophole. At the time I signed this contract and pledged, I was 17 and under-aged. I was also 17 when I dropped out, too. According to federal and state laws, any contract a minor signs cannot be legally binding, unless their parent co-signs it. So, how could this organization still find a way to force me into paying these remaining fees?

You’re probably right. But I’m not a lawyer. Good catch.

I’d also like to add that this organization, never at any point, asked for my parents’ consent when I was signing all of this stuff even though I was a minor. My parents were never informed at all that if their minor child didn’t pay these fees, this organization could try to destroy my credit. I mean, how is this crap ethical or legal?

That seems so strange that they are billing you for fees if you were never initiated into the sorority. What fees do they say you owe?? Pledge fees? Maybe you just need to contact them and say that you were never initiated? Maybe they don’t realize? They should know that already but you never know.

Good job on investigating. I would think that since you were not the age of majority (18) the contract would not be binding. But… I’m not a lawyer either.

Are these for a college meal plan?

When they send you a bill, point out that you were a minor when you signed. Work it out. In the long run, it is best not to have them sue you and have it hit your credit report than to try and fix it after a suit.

@twoinanddone @pkchamp89 This sorority had all sorts of fees, initiation fees, campus fees, chapter fees etc. The only fees that were not included were room and board, since my university does not have housing for sororities,

In the contract, it states that I must pay the remaining balance of fees even decide to disaffiliate from the sorority.

Disaffiliating is not the same as never having been initiated.

I think @pkchamp89 has a good point. It could just be a clerical error. Maybe they never got the paperwork saying that you did not initiate. Pick up the phone and make a call. Be very nonchalant about it. “Hi, I keep getting these bills, and I wanted to make sure you knew that I am not a member of the sorority. I never initiated and never became a member. Thanks for taking me off the list.”

If they still insist you need to pay, then you can say, “Well, I don’t think I owe the fee because I was not ever a member of the sorority—but in addition, I was a minor when I signed the papers, so it is not an enforceable signature.”

Don’t use the word contract. Say “papers.”

Not a lawyer, but here’s what to do:

  1. Dispute the debt in writing AT ONCE! Typically, you only have 30 days to dispute the debt otherwise, it could be held as valid. Get the name of the collector, whether it's the organization or a 3rd party collector. They must provide that information. Of course, keep a copy of the letter and the receipt for yourself.
  2. Send a letter to the collector, certified mail with a return receipt. Also send by regular mail.
  3. Give the reasons that you dispute the debt: (a) Although you were at one time interested, you never were initiated (b, the BIG one) that you were a minor at the time thus any contract signed by you and not co-signed by a parent is invalid.
  4. Demand a copy of the (a) co-signed contract; (b) if a 3rd party collector, their license to collect a debt in (your state);
    (c) the name and address of the creditor (the sorority HQ)
  5. End with this: "I demand that you immediately cease and desist any and all attempts to contact me to collect this invalid debt. If you persist — or seek judgment for payment of the debt — without first providing the above written verification, you will be in violation of the Fair Debt Collection Practices Act and the proper authorities will be notified. Additionally, the debt can not accrue any fees or interest beyond what is allowed by state law or by contract with the original creditor.

Sincerely,
(YOUR NAME)
(Date)"

Good luck!

The Fair Debt Collection Practices Act applies to those trying to collect the debts of others, not their own debts. As long as it is the sorority making contact, it’s fine.

Per Nolo:

Minors Have No Capacity to Contract

Minors (those under the age of 18, in most states) lack the capacity to make a contract. So a minor who signs a contract can either honor the deal or void the contract. There are a few exceptions, however. For example, in most states, a minor cannot void a contract for necessities like food, clothing, and lodging. Also, a minor can void a contract for lack of capacity only while still under the age of majority. In most states, if a minor turns 18 and hasn’t done anything to void the contract, then the contract can no longer be voided.

Look up the laws for your specific state. @SpacemanEd seems like he’s provided you with a good letter template for addressing the collections situation. Go get 'em!

So if you’ve turned 18 already, it may be too late, according to the above.

Have you replied to any of the emails stating you were never initiated? If yes, what was their response?

Many orgs have pledge dues so I would first clarify what is being asked of you. If they are pledge dues, I think you should pay them because you did pledge. If these are dues for initiated members then I agree that you should not pay and you should contact the national org to make sure this isn’t being billed in error.