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40-Debt Recovery Procedure

Debt Recovery Procedure

We consider that a fair and effective debt recovery procedure is an essential element of the Core Services which we provide for homeowners.
Every homeowner should be aware that they share a financial responsibility with their co-owners to the extent that failure to meet their common charges invoices will reduce the float held for the property which in turn could compromise the proper maintenance, repair and servicing of the property and potentially put insurance, if involved, at risk.

To help protect the homeowner against the depletion of the float and the negative consequences which can follow from this, we have in place a strict debt recovery procedure which operates as follows:-

1. Following issue, each common charges invoice is due for payment within 28days.

2. 28 days from the date of issue, if any invoice remains outstanding a reminder letter is sent requesting payment within 7 days.

3. If the debt remains unpaid 7 days after the first reminder, a second reminder letter is issued and an administration charges of £12.50 plus vat is applied to the homeowners account.

4. If the debt remains unpaid 7 days after the second reminder, a final reminder letter is issued and an administration charges of £50.00 plus vat is applied to the homeowners account.
5. Debtors still have the opportunity at this point to make settlement and avoid court action and are urged to do so. They are also advised that under certain conditions Rentolease may be able to agree settlement by reasonable instalments.

6. If the debt remains unpaid, and there is a chair or committee in place permission will be saught requesting that legal proceedings are commenced. Where there is no chair or committee Rentolease will instruct legal proceedings on behalf of the other homeowners.

7. The case is then referred to our solicitor to commence legal action against the non payer.

With any debt, consideration will also be given to the recording of a Notice of Potential Liability for Costs against the title of the defaulter's property. This provides a degree of security that the debt will be met in the event of a sale of the property and is a process we often implement in the interest of the homeowners collectively where the proper maintenance, repair, servicing and/or insurance of the common property is being compromised by an individual homeowner's debt. There is a financial consideration involved in this legal process and an overall administration fee, currently £100 plus VAT is charged to the defaulter's account where it is considered necessary to take this step.
Our Core Services include liaising with legal agents and preparing documentation. No additional fee is charged for our role in this and any legal fees incurred in this process will be added to the defaulter's debt and included in the court action.

If attending court is necessary this will be charged at an additional cost and is out with our core services. Any unrecoverable legal costs will be shared by all homeowners.

In extreme cases, where a debt, either singular or collective, has the potential to impact, or is impacting, on our service delivery we will notify all homeowners accordingly. All unrecoverable legal costs will be apportioned to the other homeowners accounts.
 

NB - If any homeowner is in dispute with any element of the common charges invoice, it is imperative, in view of the above procedures, that the homeowner intimate specific details of the dispute to us. We will endeavour to resolve any such dispute as soon as practicable after notification. Where a dispute relates to a specific element of a common charges invoice, the charges relating to the items not in dispute must be paid.

 



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