Credit Control Process

Our credit control process is integral to the smooth running of a development. All service charge monies are paid into a named, interest-bearing trust bank account which is specific to your Consort development.

When service charge invoices go out at the beginning of the financial year it is essential that we collect money in accordance with your lease in order that we can pay contractors, utility companies and insurance premiums promptly.

For property owners who fail to pay their service charge we do have to commence a credit control process in the interest of all other owners at your development. Our initial Credit Control process is run to an agreed standard and again in accordance with what is stated in the lease. Most leases have a standard policy to give resident customers 21 days to pay.

If no payment is received from a resident then we send out a 2nd Credit Control letter which involves an administration charge and interest can be charged.

If payment is not received, a further letter is sent indicating it is the final notice before legal proceedings. The letter confirms that the additional charges have been added as indicated in the first letter and that if payment is not made within 7 days the debt will be referred to a Debt Collection Agency or a solicitor, which will then incur legal costs.

In certain circumstances involving Leasehold properties, we will instruct our solicitors to issue forfeiture proceedings against property owners due to long term and persisting debt. If such action is taken this can result in a property owners Lease being cancelled which means the property will revert to the ownership of the freeholder.