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A report published today has found that approximately three-quarters of UK universities looked at by the OFT have terms and conditions that could prevent students from graduating or enrolling onto the next academic year if they owe non-tuition fee debts, such as for university accommodation or childcare services.

The OFT considers that the blanket use of academic sanctions in such instances, regardless of the circumstances, could breach consumer protection law. It is particularly concerned that some terms allow the university to impose sanctions on students even when they owe small amounts or a debt is disputed. 

The OFT is therefore writing today to over 170 universities and higher education institutions, urging them to proactively review their rules and practices, and revise them where required. It will continue to work with sector representatives such as Universities UK to encourage increased awareness and compliance with the law amongst their members.

Nisha Arora, Senior Director in the OFT's Services, Infrastructure and Public Markets Group, said:

'Preventing progression or graduation not only affects students' educational experience but could also significantly harm their future employment prospects and ability to pay off their debts.

'That is why we are writing to all universities today to ask them to review their terms and practices in light of the OFT's report. Not all universities use these terms, and our report identifies some examples of alternative approaches. We expect all institutions to ensure that their rules and methods for debt collection are fair and comply with the law. '

The OFT opened this investigation in July 2013 following a complaint from the National Union of Students. 

NOTES

1. You can see all updates and the case closure summary on the case webpage.
2. In the course of the investigation the OFT wrote to 124 UK universities that are members of Universities UK for copies of their rules and regulations and other terms and conditions. This did not include members of GuildHE or private universities. One hundred and fifteen universities provided the OFT with copies of their documentation which we analysed. 
3. Of the 115 universities that provided copies of their documentation, the OFT found that approximately 75 per cent of these universities include provision in their terms and conditions to prevent students from graduating or enrolling onto the next academic year if they owe non-tuition fee debts. 
4. The OFT has today written to 164 higher education institutions comprised of all Universities UK and GuildHE members.  The OFT has also written to a number of private universities.  A copy of the letter can be found on the case closure page.
5. The findings of this investigation will be fed into the OFT's ongoing call for information into the provision of undergraduate higher education in England by universities and other institutions. For further details please visit the case page.
6. On 1 April 2014, the Competition and Markets Authority (CMA) will become the UK's lead competition and consumer body. The CMA will bring together the existing competition and certain consumer protection functions of the Office of Fair Trading and the responsibilities of the Competition Commission, as amended by the Enterprise and Regulatory Reform Act 2013.