Florida Community Association Manager Practice Exam

Which of the following is NOT a component that should be included in a collection policy?

1. Court charges for filing of liens

2. Payment deadlines for assessments

3. Methods of communication for overdue payments

4. Procedures for dealing with creditors

The correct answer is: Court charges for filing of liens

A comprehensive collection policy is essential for community associations to effectively manage delinquent accounts. Among the various components of such a policy, the inclusion of payment deadlines for assessments provides a clear timeline for residents, thereby promoting accountability and ensuring that members understand when payments are due. Methods of communication for overdue payments are critical because they outline how the association will notify residents of their delinquency, fostering transparency and encouraging prompt payment. These communication strategies can include letters, emails, or notices, which help maintain an open dialogue between the association and its members. Procedures for dealing with creditors are also vital in a collection policy. These procedures might outline how the association will engage with third parties in the event that pursuing a resident for overdue assessments requires external assistance. This ensures that the policy addresses all potential scenarios that may arise during the collection process. On the other hand, while court charges for filing liens are relevant to the overall process of debt recovery, they are more about the costs associated with enforcement rather than the policy's framework. Including this as a standard component in a collection policy may not directly contribute to the strategies for managing overdue payments and, therefore, would not be considered a necessary element of the policy. Instead, they could be seen as informational and context-specific rather than foundational