A TOOL FOR YOUR BOARD
Use this Sample as a Template to Craft Your Collections Policy
Sometimes, homeowners miss payments or simply don't pay the assessments for their HOA or Condo association. Delinquencies left unchecked can cause major harm to your community. A uniform collections policy protects your community association by establishing the legal standard for the procedures your community will follow in collecting on delinquent fees.
Your Collections Policy establishes that the board has the authority to collect, and describes the plan of action (and timetable) for enforcing collections. This is your best front-line defense against discrimination claims from collection procedures.
A uniform collection policy:
- Communicates how delinquencies will be treated (thus encouraging homeowners to pay to avoid penalties)
- Clearly states the timeline for the actions that will be taken
- Establishes clear guidelines for late fees and interest
- Ensures homeowners are given ample opportunity to settle debts prior to any drastic measures being taken
- Prevents accusations of discrimination by applying a uniform policy to all members
Complete the form to download this Sample Collections Policy to use as a template for your board of directors when crafting your own collections policy.
Download the Policy
Sample Uniform Collections Policy
Updated on 2020-05-14T18:35:44-04:00, by .