Pay Ready (previously Debt Logic)- Site Managed

Purpose (Why we do this):

Some sites are responsible for managing their own bad debt on site. This helps past residents have one point of contact for collection, payments, questions, etc.

Policy (What you're supposed to do):

Sites should follow the below procedures for managing their own bad debt:

• If Bad Debt collection responsibilities are assigned to you by the appropriate parties (Corporate Bad Debt contacts or regional managers), those collection efforts are considered part of your standard job responsibilities. This includes (but is not limited to) all former resident communication, in-house collection efforts, collection agency submission & any/all required account housekeeping items. Collection efforts should only occur within the weekly allotted total work hours. It is not an overtime approved activity.
• Bad Debt is considered any amount owing on the account after 15 days of FMO completion. This is applicable to all HRA properties & no individual bad debt structures should be created on site.
• A 10% commission is paid on all Bad Debt collected in-house (without the use of a collection agency/attorney). This commission will be paid to the person who has exerted the most effort in obtaining payment as determined by the Property Manager. The Property Manager has the authority to vary from this amount if he/she deems it appropriate to do so. The Property Manager has the authority to disallow some payments from commission eligibility if he/she believes the payment was obtained independent of any effort exerted by site staff.
• Commissions will be paid quarterly unless indicated otherwise in writing by appropriate parties (Corporate Bad Debt contacts or regional managers). Site should keep a commission log to ensure that commissions are not paid out multiple times on the same bad debt payment. Commissions should be paid after being approved by the Corporate Bad Debt Contacts.
• Any files that go more than 90 days without payment will be automatically sent to collections via Pay Ready's (previously Debt Logic) 3rd Party Marketplace. We don't want to market 90 days, but rather 45 days as a final deadline. Please ensure an updated statement, signed lease contract, approved application, & invoices (if applicable) are uploaded. 3rd party collection agencies will keep 40% of the total amount collected.
• All formal communication must be approved by the appropriate parties (Corporate Bad Debt contacts or regional managers).
• Pay Ready account should be regularly inspected to confirm that all contact information (email, phone number, etc.) is accurate. If an account does not have an email address, the automatic follow up will not be activated and resident will not be notified of his/her balance.
• All contact with the resident should be logged in the activity section of Pay Ready. Lack of personalized activity can result in withholding of commissions.

Failure to adhere to any part of this SOP could result in delay/withholding of commissions, employee write-ups or termination. If you have any questions or concerns, please address them immediately with the appropriate parties (Corporate Bad Debt contacts or regional managers).