Outstanding dues from past years

[UWOAPhi]

I am the finance adviser for our chapter for the past year. The chapter's financial records have been kept in a ledger book for the past few years. I believe that no receipts were issued when dues were collected.

In this ledger book, there are several names from previous years with outstanding dues. Letter were sent out and now I am getting responses such as "It has been paid. Check with so and so." and "I was not active in my last year. The then president knew of this and we agreed that I was not to pay dues for that year."

I do not know who "so and so" and "then president" is. I am trying to contact them but I'm pretty pessimistic about their response, like "I can't remember" and "I guess she's right".

I am trying to clean up the finances so that we can start on the right foot next year, but I am concerned about these outstanding dues. If anyone has dealt with this situation or has any thoughts or suggestions on how I should proceed, it would greatly appreciated.

Sherry

[Kevin]

Most GLO's have a built-in system of dealing with delinquent dues. If you can PROVE that they do in fact owe this money (and you'll need to refer to your organizations governing paperwork to see what all the criteria are for this) then you can often threaten them with suspension (if they're active) or loss of their alumni status and membership to your GLO if they're alums.

Also, they LEGALLY owe you that money and probably at some point signed some sort of document to the effect that they do. You can always turn them over to a collection agency if they refuse to pay.

To be realistic, if these problems go too far back, it's not worth the trouble. Just write them off and move on. To stay current however, I suggest you look into Omega Financial Services, Inc. at www.omegafi.com. They make your collections VERY managable so that as financial advisor you can focus on what you should be doing, planning, etc.

Good luck!

LHT
Kevin
MT #5
University of Central Oklahoma

[NeonPi]

Originally posted by UWOAPhi
I am the finance adviser for our chapter for the past year. The chapter's financial records have been kept in a ledger book for the past few years. I believe that no receipts were issued when dues were collected.

In this ledger book, there are several names from previous years with outstanding dues. Letter were sent out and now I am getting responses such as "It has been paid. Check with so and so." and "I was not active in my last year. The then president knew of this and we agreed that I was not to pay dues for that year."

I do not know who "so and so" and "then president" is. I am trying to contact them but I'm pretty pessimistic about their response, like "I can't remember" and "I guess she's right".

I have been where you are Sherry (Canadian FA's Unite!!), and it's a tough road to go through everything.

I would suggest going through and try to match up the payments to the deposit book vs the ledger.

I used to work at a collection agancy (administration, but I still had to know collection practices), so the next bit is important...

What kind of documentation do you have?

Hopefully, promissory notes/payment plans were used and are still on file. Along with the ledger, this would be what is needed to file with a collection agency. If not, unfortunately you won't have the necessary documentation to file.

You need to make sure you have matched up the deposit book and ledger and have as accurate recrod as possible. Otherwise, you may need to just cut your losses, and start fresh.

"I had a deal with so-and-so"
These women will then need to prove it. THEY should find so-and-so and get them to contact you what arrangement had been made. It is their responsibility to make sure that their accounts are clear before they graduate - and because there is no documentation to their claims, they are still on the hook....(just like ktsnake noted)

Collection Agency's in Canada

Because you are in Canada, a filing with Omega will not show up on a debtor's credit file. I would recommend that if you decide to use a collection agency, that you should file with Equifax Canada - they are the only credit file reporting agency in Canada. This will ensure that any debt over $100 will show on a debtor's credit file for 7 years (even if they pay it will still show). Some Canadian collection agency's don't have an agreemnt with Equifax to list debts, so they won't get on.

Collection agency's in Canada have to abide by strict collection laws where you as the client must provide sufficient proof of agreement for payment (an invoice or promissory note or payment plan as noted below). Otherwise, it becomes a she said/she daid, and they will close the file beacuse of insufficient proof.

Alumnae Not in Good Standing
From a fraternity standpoint, they should be listed as alumnae not in good standing with your HQ. Check with your Regional Finance Team, and they can give you directions on what they need to do and file for this to happen.

As well, these alumnae should be notified by yourself and the chapter that as they have an outstanding debt, that they are going to listed as alumnae not in good standing, and will be unable to attend chapter events. You'd be amazed how some debts get taken care of quickly when alumnae find out they won't get their Quarterly any more or can't attend Founders Day!

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I know that some may think that the above is a bit hard-line, but at the same time, it is not fair to those members who did work during the summer/school, and paid their dues on time. As well, the chapter may never recover from such debts and this will contribute to stress on the current membership to remain solvent.
Sisterhood does not run on love alone, eh!

One of the goals of sorority membership is to prepare young women for the real world. By letting members slide/not pay, we are doing a real disservice to these women in not holding them responsible. In the real world, if you have debts outstanding, you sure find out quickly how hard it is to get a car loan, a line of credit for your wedding, or get denied for a credit line so you can do your MBA.

I have also PM'ed you in case you would like discuss this further.

Best of luck!!!

Panhellenically,
Shala