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Billing and Collection Procedures
Bad Checks On the date that a check for insufficient funds is received from the bank, a form letter will be mailed notifying the consumer of the returned check, the total amount due with the return check fee and the person to contact. The consumer will be given five working days to come to the Cooperative office and settle the account with cash, a United States Post Office Money Order, or a certified check. If unpaid after five working days, the account will be forwarded to the service department for immediate disconnection and, after 10 days, the dishonored check or instrument and all other available information relating to this incident will be forwarded to the District Attorney for criminal prosecution. A charge which is the maximum amount as allowed by law (See Schedule of Fees), will be imposed and added to the current bill of a consumer for a returned check. Bad Debt Accounts Within ten (10) days after the date of the Final Bill a letter will be written to the consumer whose account is delinquent informing the consumer that unless the account is paid in full within seven (7) business days the account will be referred to the Cooperative attorney for collection. A copy of this letter will be maintained in the consumers’ file. The Billing/Collections Clerk will review the consumer’s application for place of employment, nearest relative and/or landlord. Documentation is to be maintained on each consumer disconnected with a Final Bill past due. The Collection Documentation Record will be maintained in the Consumer’s file. Dates of calls made and responses received will be recorded. If in six (6) days the consumer has not paid or made specific arrangements, a Second letter is to be sent to the consumer demanding settlement or the consumers payment history will be forwarded to On Line Collection Services for collection. If the account is not settled or there is no response, the following steps are to be taken: If the account is less than $3,000 and there is no response, a Certified Letter will be sent to the consumer demanding settlement within seven days or the Billing/Collections Clerk responsible for write-offs will file in Small Claims Court. At the time the Board approves the account as a write-off, the Billing/Collections Clerk will forward the account to On Line Collection Services for collection. If the account exceeds $3,000, it will be referred to the Cooperative attorneys who will write a letter advising that the account will have to be settled or arrangements made within seven days from the date of the letter of suit will be filed. (Before a suit is filed by the attorneys, a determination should be made that actual collection can be reasonably expected.) At the time the Board approves the account as a write-off, the Billing/Collections Clerk will forward the account to the attorneys. A Fee equal to 35 percent of the Gross Bill will be added to the amount owed to the Cooperative. Up to 35 percent may be paid to the Attorney/Collection Service on the amount collected. |
