DEBT-RIDDEN students from a Scottish university will no longer be prevented from graduating or re-enrolling after a change in policy.

Glasgow University acted after it was accused of unlawful treatment of students under consumer protection legislation.

The UK-wide Competition and Markets Authority (CMA) raised concerns because the university was applying academic sanctions to students who owed non-academic debts such as rent arrears or library fees.

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And the Students’ Representative Council (SRC) said in some cases the finance department had ignored circumstances such as family bereavements, serious illnesses and loss of parental employment. Some debts were as small as £25.

Gordon Ashworth, the CMA’s director of consumer enforcement, said: “Whilst it’s right that universities are able to recover legitimate debts owed to them, they should do so in a way that is fair and proportionate.

“Students shouldn’t be prevented from graduating or re-enrolling for the following year’s study because they owe money for non-tuition fee debts, like accommodation or library arrears.”

Kate Powell, the SRC’s vice-president for education, called on other Scottish universities to follow Glasgow’s lead.

She said: “We know there are many other institutions in Scotland and the UK breaking the law in this way and we are pleased Glasgow has been at the forefront in changing its policy to apply the law in full.”

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A university spokesman said: “The university has altered the terms of its student debt policy following representations from CMA.”

He added: “It will continue to provide support and advice to students with financial difficulties and to do all it reasonably can to assist them in clearing debt.”

In 2014 a report by the Office for Fair Trading (OFT) confirmed that any institution applying academic sanctions for what is known as non-academic debt was in breach of consumer protection legislation.

The report states: “We have found that a significant majority of UK universities... include provision... to use academic sanctions that have a direct impact on a student’s academic progress or attainment when they owe any monies to the university, including charges for services such as accommodation and childcare.

“We consider that universities may be able to reduce the risk of legal challenge by reviewing their terms and conditions and practices and amending them, if necessary, to ensure terms and practices considered by the OFT to be potentially unfair are not being used.”

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In November last year University College London announced a similar change in policy after discussions with the CMA, which replaced the OFT.