Chasing outstanding debt
Please follow the steps below to ensure a smooth credit control process is in place:
- Ensure that invoices are correctly issued to avoid any delay. If invoices are not issued correctly and have to be re-sent, a further 30 days must be allowed for payment.
- Should a leaseholder request that their invoice is issued in a way the system cannot cope with, or is in contravention of company policy – (eg, a request for invoices to be sent to the leaseholder’s email address) then the leaseholder must be made aware of this.
- Carefully check the terms of the lease for service provisions to ensure that the invoice is correctly served in accordance with the provisions in the lease – for example – has it been sent via recorded delivery if the lease requires this? If the lease is silent upon the point then best practice would mean that all invoices are served first class and preferably by registered delivery post.
- Although not legally obliged to issue reminders, it is good practice to do so. Sample reminder letters can be provided on request.
- If sending reminders, there is a statutory entitlement to add a reasonable administration charge for this – but the leaseholder should always be made aware of this and a copy of the “Administration Charges – Summary of Tenant’s Rights and Obligations” should accompany the reminder. A copy of this document is available on request.
- If sending reminders, a gap of approximately 7 days should be left in between each one (if more than one is sent). It is a good idea also, in the final reminder, to inform the leaseholder that if payment is not received by a specific deadline the matter will be referred to solicitors and they will be liable for any costs incurred. You should also confirm the amount of any ‘referral fee’ that will be added to the sums due.
- Should any valid dispute be raised by a leaseholder this should be responded to prior to the matter being referred to solicitors in order to prevent any unnecessary legal costs being passed back to you.
SLC Solicitors can provide an in-house service to assist with credit control.