› Flat Chat Strata Forum › Levies and Unit Entitlements › Can’t pay, won’t pay › Current Page
I've had the same problem with non-payers in our self-managed Plan, and have found that the permitted 10% interest is no encouragement for these proprietors to pay-up.
Further, the Administratve Fees that our Plan applies to the arrears in an effort to cover reminder letters, final notices, and collection fees under our Debt Recovery Process were NOT taken into consideration the one Court Judgememnt that we obtained, where by the way the Court-Ordered Payment amount will never see the Proprietor's arrears paid before the subsequent Levy Payments become due.
Out of despiration, I put a Motion before our last AGM whereby Contributions would be increased by 20%, and put a complementary Motion to offer a 20% discount on Contributions that were received in-full before the payment due-date.
Those Motions were passed, and thus far it's worked a treat!! Typically, we had 6-8 Proprietors out of 27 in arrears to varfying degrees up to 90 days (most would make part-payments at every reminder letter), and presently we have only one Proprietor in arrears, and only for around 50 days, and making regular part-payments to catch-up.
Worth a try !!!!
Cheers – The Whale