I am a director of an OMC. A decision was taken at this years AGM to introduce clamping in the estate. It has been very effective and debtors who had avoided paying fees for years have now paid up. We have found it a very efficient way of collecting monies owed and works out a lot cheaper than hiring debt collection firms or going down the legal route.
u need to check who collect the serevice charge in the lease. If they are not collected by man co then man co cannot use lease but the MUD Act.The strategy now is to see if the lease specifies whether or not interest can be applied to overdue accounts and at what rate. If this doesn't work then we will be forced to go the legal route via debt collection.
Gebbel- I would not recommend selling the debt.. I would suggest you engage a solicitor who will go after the debt.
A communication to all the members advising what the Board are going to implement is a good plan too.
I have read that another strategy could be to try and remove the non-paying unit from the block insurance policy. This in turn would violate the terms of any mortgage agreement, and would have the banks also on their backs. Can anyone comment on this? Thanks.
Finally, most leases provide for the addition of interest and fees to outstanding arrears. You will be entitled to the fees which have been incurred on legal letters, debt collection agencies etc, but if challenged you will not get the interest.
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