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Collections Policy

Policy Overview

  • Purpose: Define the objective of the collections policy to maintain financial stability and ensure continued services.

  • Scope: Applicable to all members regarding dues, fees, and any other charges incurred through club participation.

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Billing Procedure

  • Invoice Issuance: Bills for membership dues, registration fees, and other charges should be issued on a regular schedule (e.g., monthly, or quarterly).

  • Payment Terms: Clearly state payment due dates and acceptable payment methods (e.g., credit card, direct debit, online payment platforms).

  • Billing Inquiries: Provide a contact method for members to discuss billing issues or discrepancies.

 

Late Payment Policy

  • Grace Period: Allow a grace period (e.g., 10 days post-due date) during which members can settle their dues without incurring penalties.

  • Late Fees: Implement a late fee for payments made past the grace period. Clearly outline how late fees are calculated.

  • Notifications: Send reminders via email or SMS before the due date, at the start of the grace period, and when the account officially becomes past due.

 

Collections Communications

  • First Notice: Issue a formal notice immediately following the grace period, reiterating the amount due, any late fees incurred, and the potential consequences of non-payment.

  • Subsequent Notices: Send additional notices at set intervals (e.g., 30, 60, 90 days overdue), escalating the urgency and outlining any further steps the club will take if the account remains unpaid.

 

Payment Plans and Hardship Considerations

  • Offer Payment Plans: Allow members experiencing financial difficulties to enter into a payment plan agreement to settle their dues in smaller, manageable installments.

  • Hardship Policy: Develop criteria under which members can apply for temporary relief from dues due to financial hardship.

 

Collection Agency Intervention

  • Criteria for Escalation: Define the conditions under which an account is forwarded to a collections agency (e.g., accounts 90 days past due).

  • Agency Interaction: Choose a reputable agency and outline how they should interact with members to ensure fair treatment and compliance with legal standards.

  • Member Notification: Inform members before transferring their account to a collection agency.

 

Record Keeping and Confidentiality

  • Documentation: Keep detailed records of all communication and transactions related to overdue accounts.

  • Confidentiality: Ensure all member information is handled confidentially and under privacy laws.

 

Review and Appeals Process

  • Dispute Resolution: Offer a clear process for members to dispute charges or collections actions.

  • Policy Review: Regularly review and update the collections policy to adapt to new financial situations or legal requirements.

 

Communication and Training

  • Staff Training: Train staff involved in the billing and collections process on policy details, empathy, communication skills, and legal compliance.

  • Member Awareness: Ensure all club members are aware of the collections policy by including information in the membership agreement and on the club’s website.

 

Implementation and Monitoring

  • Policy Launch: Announce the introduction of the new collections policy well in advance of its implementation date.

  • Ongoing Monitoring: Regularly assess the effectiveness of the collections process and make adjustments as necessary based on feedback and performance metrics.

Implementing these procedures will help SWU manage its finances more effectively while maintaining a positive relationship with its members.

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