In All Service Charge Arrears Cases We Will

In All Service Charge Arrears Cases We Will

Service Charges Arrears

CARRICK HOUSING LIMITED

LEASEHOLDER SERVICE CHARGES

ARREARS PROCEDURE

ACTION STAGES IN SERVICE CHARGE ARREARS PROCEDURE

Most service charges are payable within 14 days of the demand for payment, after which time, interest may be added to the debt on a daily basis.

Where the lease specifies a different time scale for payment, Carrick Housing will take action in accordance with the terms of the specific lease.

Home visits will only usually take place where the leaseholder fall within those categories outlined in the customer safety checks.

Debt recovery action will be taken only after checking to make sure that there is no Service Charge Loan in operation.

Where the lease does not provide for adding interest after the date that the debt becomes due, and Carrick Housing go to Court for Debt Recovery Action, Carrick Housing will apply to the Court to have interest added to the debt at the Court’s interest rate.

If debts are recovered through the County Court, the leaseholder will also be responsible for paying Carrick Housing’s legal fees.

COLLECTION OF SERVICE CHARGE ARREARS

The Carrick Housing will aim to operate a ‘firm but fair’ approach towards the collection of arrears. However, if there are persistent arrears, Carrick Housing will be prepared to take legal action to recover the debt and, when all else fails, will seek forfeiture of the lease.

In all service charge arrears cases we will

  • take early action in every case
  • make personal contact with leaseholders - backed by letters if there is no response
  • provide up to date service charge account balances
  • document all actions and conversations
  • write service charge arrears letters in plain English
  • agree negotiated payments based on the leaseholders income and reasonable expenditure.
CUSTOMER SAFETY CHECKS

Carrick may have leaseholders who are elderly, who are vulnerable through mental or physical disabilities, who have young dependant children and who have literacy problems. In accordance with our Service Standards Policy these leaseholders will be treated as special cases. All leaseholders must pay service charges but for those leaseholders listed below the following safety checks will be adopted.

For leaseholders who are either over 65 years of age, disabled or with mental health problems/learning difficulties

  • always ensure the repayment plans are realistic for the leaseholder
  • application for County Court Judgement will not be made until all other means including home visit/interview have been completed

For households with young children (i.e. under 16)

  • always ensure the repayment plans are realistic for the leaseholder
  • application for County Court Judgement will not be made until all other means including home visit/interview have been completed

For leaseholders with literacy problems

  • we will attempt to communicate all decisions verbally

For leaseholders whose first language is not English we will

  • provide all written information translated into their chosen language
  • conduct all interviews through appropriate translators.

CUSTOMER CARE, LETTERS, HOME VISIT AND INTERVIEW PROCEDURE

At all times consideration will be given to the Customer Safety Check to make sure that any vulnerable leaseholders are dealt with in the appropriate manner.

LETTERS

All letters will be in accordance with our Customer Care Policy and be

  • in plain English
  • correctly addressed
  • have the Carrick Housing freephone number
  • be in sealed envelopes

Letters following an interview or home visit will

  • summarise the key points of the meeting
  • show a current service charge balance including the most recent payment

Letters sent in accordance with the Leasehold Charging Policy will

  • show a current service charge account balance with date
  • request to pay outstanding debt with suitable repayment plan
  • a summary of the action that will follow if the leaseholder does not repay outstanding debt.

HOME VISITS

Should a home visit be necessary, Carrick Housing staff will

  • introduce and identify themselves with ID cards
  • explain the purpose of the visit
  • ensure there is adequate privacy for the leaseholder.

INTERVIEWS

All interviews, at the leaseholder’s home or in Carrick Housing offices, must be sensitive and non-threatening. They must take place in private and be confidential. For interviews without prior appointments at the leaseholder’s home or in the office, the leaseholder must be made aware that a service charge interview is to take place. If it is not convenient for the leaseholder to discuss service charge account details an alternative appointment must be agreed and documented.

Failure by the leaseholder to agree or keep a subsequent appointment will be deemed as approval to move to the next stage of the service charge arrears policy unless there is good cause not to do so.

All interviews will be documented and the key points confirmed in writing or via a service charge arrears agreement.

The Interview Process

The interview should be sensitive and non-judgmental

  • go through the service charge account and ensure there are no discrepancies
  • check whether the leaseholder has received all the letters sent
  • check the name of the interviewee against the lease details
  • explain you would like to discuss the leaseholder’s service charge account if the leaseholder has not responded to letters or made payments
  • discuss with the leaseholder that they should inform all adults with an interest in the property that there is a service charge debt
  • check who is occupying the property
  • explain clearly the service charge arrears procedure
  • explain the seriousness and ultimate consequence of non payment of service charge
  • make assessment of whether the household is vulnerable
  • answer any questions the leaseholders may have.

CONCLUDING HOME VISIT OR INTERVIEW AND REACHING AN AGREEMENT

  • summarise all the key points of the interview with the leaseholder
  • repayment of debt is non-negotiable - it is part of the lease agreement that service charge due must be paid. The repayment plan that is agreed with the leaseholder is a judgement made against the financial assessment of the leaseholder’s ability to repay
  • agree, then document the summary with the leaseholder
  • leaseholder to sign and keep a copy of the agreement
  • explain that the leaseholder should contact you if the agreement or repayment plan cannot be met. Remember a revision to the repayment plan can only be agreed following a change in income or exceptional circumstances and should be judged on the following grounds:
  • the long term viability of the tenancy agreement being maintained
  • the number of previous exceptional circumstances on the service charge account files
  • are the exceptional circumstances relevant to the leaseholder
  • are the exceptional circumstances reasonable
  • Ask leaseholder to sign a revised agreement form.

Stage One

Service Charge Arrears of 14 days when interest becomes payable (or other terms as specified in the lease).

Carrick Housing will

1)send a reminder letter stating that interest may now be added on to the debt on a daily basis, in accordance with the leaseholder charging policy.

2)The letter will request that the leaseholder contact the Carrick Housing to arrange payment.

Stage two

Service Charge reminder letters will be sent every 28 days until the debt has been cleared or has reached a total of less than £500.

The letters will request that the leaseholder contact the Carrick Housing urgently to discuss the debt and arrange a payment plan.

If no response is received to letters then other inquiries should be made to find out if the leaseholder has moved address.

Where the records indicate that the leaseholder was occupying the leased flat then a letter addressed to the occupier requesting the current address of the leaseholder will be sent. If this receives no response then a visit to the leasehold property will be undertaken to find out if the property has been let or the lease sold.

If the address on record is other than the leasehold address then a letter to ‘the occupier’ will be sent asking about the person shown in our records as being the leaseholder and requesting a forwarding address for them.

Stage three

Service Charge arrears of more than £500.

Carrick Housing will

1)Contact the leaseholder by telephone, or

2)Send a strong letter with an interview date and time to discuss the matter.

If this is successful, a letter will be sent to the leaseholder confirming the payment plan and the dates of payment.

Stage four

When stage three has become unsuccessful

Carrick Housing will

1)Contact the leaseholder to advise that the Finance Director of Carrick Housing was to consider whether action should be taken in the County Court unless a payment plan was put in place within the following 14 days.

Stage five

Where the leaseholder does not respond, and the Finance Director so instructs, then Carrick Housing will instigate court action by way of a claim form for the recovery of the sums due. Carrick Housing will apply to the Court for the amounts owing, interest on the debt, court fees and solicitors costs.

If the leaseholder does not pay within the time allotted by the Court, Carrick Housing will apply for Judgement immediately.

If the Judgement is not satisfied Carrick Housing will enforce the Judgement which may involve one or more of the following:-

1)A request to the Court for a warrant of execution. This may involve a baliff seizing and selling the leaseholder’s goods.

2)An attachment of the leaseholder’s earnings.

3)A charging order to be placed on the property.

Stage six

If a County Court Judgement remains unsatisfied and/or the debt is greater than £1000.00, the Carrick Housing will, as a last resort, consider taking the required legal proceedings for the forfeiture of the lease.

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