Leasehold Debt Recovery Policy
Arrears Recovery Procedure
Where debts accrue the debt recovery procedure for LSC arrears is as follows:
• First reminder to be sent out 30 days after the issuing of service charge invoices.
• Second reminder to be sent after a further 14 days requesting payment and warning of potential court action and further costs being added to the account if payment not received in 7 days.
• If no contact from leaseholder attempts will be made to contact by telephone to discuss debt and sign post to sources of assistance and advice.
• Mortgage Company / lender written to - informed interests in property at risk, as insurance claims may be declined due to non payment of premiums, and asked to consider capitalising debt.
• If no contact can be made, lender refuses to capitalise debt and there are no valid reasons for non-payment debt will be referred to solicitors to begin recovery proceeding through the county court.
• If judgement awarded Mortgage Company / lender written to requesting they reconsider capitalising debt.
NB: All reminders will include signposting information to sources of assistance (i.e. CAB, National Debt Line) or the Financial Inclusion / Tenancy Sustainment Services within Housing Management Services.