This guide outlines the two methods of arrears management available on the Solution: Pre-legal and Legal. The pre-legal process involves issuing arrears notices to owners (noting that there is no fixed industry standard). However, before an account can proceed to legal action, a formal letter of demand must be issued.

Additionally, the guide explains Debt Statuses, which apply when the Property Managing Agent is a registered debt collector. In such cases, a collection fee up to 10% may be charged (as per Annexure B, Section 11)

TABLE OF CONTENTS

• 1. Arrears Notice Management 
  • 1.1 Set up of Arrears Notice Messages
  • 1.2 Set up of Arrear Notices Charges
  • 1.3 Sending Arrears Notices
• 2. Debt Collection Management 
  • 2.1 Set up Debt Collection Cost Table
  • 2.2 Set up Collection Statuses
  • 2.3 Set up Default Billing
  • 2.4 Apply Debt Collection Statuses

1. Arrears Notice Management 

1.1 Set up of Arrears Notice Messages

Navigation: Global Overview > Settings > Communication

These steps can be followed to set up the default message that will be sent within communities when notices are sent from Customer Age Analysis.

From the list of different available default messages to set up, select the relevant message to be set up. The Letters of Demand have already been populated but can be amended.

By clicking on the relevant message, the following pop-up will appear. Complete the fields provided.

This email message will be sent to the owner notify them that their account is in arrears. When drafting the email message, navigate to the appropriate section in the message box and insert the required wording. Please ensure that the relevant Tags are used for details such as the owner's name and outstanding amount, rather than capturing this information manually.

Example: Notice the words with the [ ] around them, the WeconnectU Solution will automatically change the data applicable to each owner. So that the Property Manager does not have to manually update each Notice email with the relevant owner details. This ensures a more personalized notice for each owner.

1.2 Set up of Arrear Notices Charges

Navigation: Community Level > Settings > Charges

Set up the amounts charged for each notice type under the Charge section, specifiying the applicable fees for both Email and SMS notifications. 

Select the amount to be charged for the 1st, and 2nd notice, as well as the Letter of Demand, sent to the client. If there should be any statuses exempt from the notices that will be sent, select in the dropdown menu next to Notice Exemption.

If relevant, complete the following charges for Phonecall and Handed Over.

Notice Threshold Amount: any amount below this amount set will not receive any notices, they will be exempt from the list.

Warning Admin Fees & Penalty Admin Fees: This relates to the Warnings and Penalties function.

1.3 Sending Arrears Notices

Navigation: Community Level > Finance > Customer Age Analysis.

On the Customer Age Analysis page, the appropriate ageing date should be selected.

Filters can be applied to hide customers with zero, or negative balances. Additionally, the Exclude Debt/Arrear Charges filter can be used to display on the capital amounts, excluding any email or arrears charges.

To run notices, Click on Run Automatic Notices.

A list of all relevant customers who meet the defined criteria for notices will be displayed. From this list, any Email or SMS notification that should not be sent can be deselected. If a notification is unticked, the owner will not receive the communication and no associated charge will be applied. These notices will also not be reflected on the owner's statement.

Click on Confirm and Run Notices when all necessary internal checks have been done. The following screen will appear, where it will list the charges of the notices.

The customer will receive an email, an invoice, as well as a PDF statement, which will always be attached. This will be an updated statement up to the date the arrears notice has been sent.

2. Debt Collection Management 

2.1 Set up Debt Collection Cost Table

Navigation: Global Overview > Settings > Debt Collection

If the company is a registered debt collector, complete the Debt Collecting Cost Table as per the example below. Should the Property Management Agency be VAT registered ensure to tick the Apply VAT box.

The Invoice date for charges can be configured to either align with the date on which the status is applied, or to be set as the first day of the following month's invoice cycle.

2.2 Set up Collection Statuses

Navigation: Global Overview > Settings > Debt Collection

Different collection statuses can be created by clicking on Add Status. These statuses can be applied within each community.

The following Pop-Up will appear. Complete the fields provide:

• Status Title: This will be the name of a specific status which will also appear in the body of the Debt Collection Email.
• Status Code: This is the code that will appear next to the name in the status management screen once the status has been applied to the specific customer.
• Cost override: This is used when a different amount needs to be charged for a specific debt status, instead of the default amount defined in the cost table.
• Email Text: This email message will be sent to the owner to inform the owner that they have been placed in a specific status. Navigate to the specific place in the message and then select the tag to be inserted. Please do not type this in manually.

• SMS Text: There is an option for an SMS message to be sent out as well. 
• Apply Collection fee: This will be the fee set up in the debt collecting cost table. This is the option to charge the owner with the debt status being applied. If the company is not a registered debt collector, may not apply these costs however, the company can still use the collection status function to manage debt in arrears.

The Status should look similar to the below:

2.3 Set up Default Billing

Navigation: Community Level > Settings > Default Billing Setup

Ensure the default billing accounts, specifically the debt collecting field, have been selected under default billing. This is usually completed by the WeconnectU Take-On Team. This is a permission-based function.

2.4 Apply Debt Collection Statuses

Navigation: Community Level > Finances > Customer Status Management

On Status Management, the appropriate ageing date should be selected.

It is best practice to select the tick boxes "Hide Zero Values" & "Hide Credit Values". This will prevent any owner who is not owing to receive any form of Debt Status Notification. Additionally, the "Exclude Debt/Arrear Charges" filter can be used to display on the capital amounts, excluding any email or arrears charges.

Select the tick box next to the owner that requires a specific status. Next, navigate to the drop-down list which states Select Status.

Notice that there are three headings. Please scroll down and make use of the Debt Statuses list.

• Select the status relevant to the owners selected. 
• There will be an option to send an Email and/or SMS with this status selected. 
• Use the note field to add any note relating to this status. These notes will appear on the customer profile which only Business Users and Attorneys can see.

Scroll down and then click on Apply Statuses.

The customer's updated status will now be displayed next to their name, using the specific code defined during the setup process.

Please note:  The blue note icon can be selected to view a detailed breakdown of all statuses and any notes recorded for each customer. Here is where the Property Managing Agent and or the Attorney can make notes and upload relevant documentation to the customer profile regarding debt recovery.

The customer will receive an invoice as below. A PDF statement will always be attached to this email being sent. This will be an updated statement up to the date the arrears notice has been sent.