Our accountant sends out the original invoice. If payment is not received, reminder statements are sent.
The Directors may approve a payment plan (contact the Treasurer). Two copies are sent to the lot owner, one to sign and return, and one to keep for their file. Note that interest (2% per month or 24% per annum) will continue to be calculated on the outstanding balance of the annual fee. Interest is not compounded.
Six months after the invoice date, if the debt has not been paid or if the payment plan is in default, LLE will proceed with collection action to recover the debt. This action will consist of a series of follow up letters and could result in court action. Costs incurred will include but not be limited to $50 for the first letter, $75 for the second letter and $100 for the third letter. Postage will be charged in addition to these amounts. In the event payment is not made as a result of these letters LLE will engage the services of an attorney to pursue the matter in court.
Once LLE has a judgement in our favour and the lot owner has not paid the debt or defaulted on a payment plan, LLE will turn the collection activity over to a bailiff. It takes time for the bailiff to go through all the necessary steps to seize and sell the property to recover the debt owed. Until the day that the Court accepts an offer to purchase the lot, the lot owner still has the option of stopping the process by paying the debt in full.
In the event that the lot is sold to recover the debt, the amounts owed to the bailiff and LLE are paid in full first. Any remaining balance will be paid to the former lot owner. Note that the debtor is responsible for the interest on the debt and for the cost of collection.