Have you Revised your Collection Policy Yet?
I previously blogged about the necessity of updating association collection policies and procedures as a result of recent legislative changes effective on January 1, 2014.
In addition to preparing a revised collection policy, associations are also required to send new collection notices which provide specific information to delinquent owners. The notices must provide the owner(s) thirty days to cure the delinquency and provide additional information about the debt before an account can be turned over to an attorney for collections. An association will also be required to offer and approve a ‘one-time’ payment plan of not less than six months to delinquent homeowners.
To ensure that there is no disruption in the collections process, it is critical that associations obtain and approve the revised collection policies and notices NOW! Failure to have a revised collections policy in place prior to January 1, 2014 will unnecessarily delay the collections process by several weeks or more and jeopardize the association’s ability to collect delinquent assessment fees. Associations should also seriously consider immediately implementing the revised collection policy to ensure that any ‘kinks’ are worked out before January 1, 2014.