Collection of Past Due Rents

How to stay stable and solvent with acceptable cash flow while insuring harmonious community relations

Published:

I. ACTIONS BY FACILITY

  1. Upon admission, always copy the check and banking, assets- real estate and banking, for payment security and information for utilization in a future collection action.
  2. Verify existence of accounts, balances and title to real estate.
  3. Upon non-payment, send initial letter and make contact.
  4. After repeated non-payment: follow up telephone call by your receptionist, not your bookkeeper, to determine if bill received.
  5. If bill received, "When can we expect payment?"
  6. Obtain specific date, and confirm conversation in writing, promising payment to your facility.
  7. Upon repeated non-payment, keep billing and repeating this process determining correct person in charge with authority to write checks and pay you.
    1. Power of Attorney
      1. Powers and Authority of the Agent/Principal. See Index on Form of Power of Attorney
    2. Guardians
      1. and initiate selection/ proceedings if needed due to lack of capacity by referral to attorney/contact with Resident’s/family’s attorney
    3. Estates- Personal Representative Powers and Duties- See Index Inherent Powers

II. COLLECTION LETTERS

  1. Pennsylvania Statutes prevent Unfair or deceptive acts or practices by Creditors with respect to debt collection activities. See Index 73 P. S. 2270.4
  2. Pennsylvania Statutes also prohibit Unlawful collection agency practices. See Index 18 PA. 7311.
  3. Federal Statutes on Debt Collection Practices purpose is to eliminate abusive debt collection practices by debt collectors. A creditor is also included in the definition of a debt collector.
  4. "Consumer" = Debtor is defined as the consumer’s spouse, parent(if consumer is a minor), guardian, executor or administrator. Power of Attorney included also, probably. Collection Letter Language”:
  5. THIS IS AN ATTEMPT TO COLLECT A DEBT. ANY FURTHER INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. THIS COMMUNICATION IS FROM THE DEBT COLLECTOR.
  6. VALIDIATION NOTICE

    If you do not dispute the validity of the debt, or any portion thereof, within Thirty (30) days of the receipt of this letter, we will assume it is valid. If you dispute the validity of this debt or any portion thereof, in writing within Thirty (30) days of receipt of this letter, we will obtain and mail you verification of the debt or a copy of the Judgment against you. At your request, in writing within Thirty (30) days of receipt of this letter, we will provide you with the name and address of the original creditor, if different from the current creditor.

  7. Timing, good cop/ bad cop.

III. THE NEXT STEP

  1. Legal Process: District Justice Action
  2. See Civil Complaint and Fee Schedule in Index. Contents of Complaint: copy of Agreement for Residence; bill
  3. Right to Appeal De Novo
  4. Jurisdictional Amounts and Common Pleas actions
    1. Estates and Orphan’s Court jurisdiction
    2. Actions by Guardians and Powers of Attorneys

IV. RETAINING LEGAL COUNSEL

  1. Fee agreements
  2. Inclusion and recovery of interest, attorneys fees payable and recoverable

V. ENFORCEMENT AND COLLECTION OF JUDGMENTS

  1. Identification and recovery of assets
  2. Proper Parties: Relatives, Power of Attorney, Guardian, Executor or Administrator
  3. Social Security Representative Payee. See Index.
    1. Request to be Selected as Payee
    2. Physician’s/Medical Officer’s Statement of Patient’s Capability to Manage Benefits
    3. Statement of Care and Responsibility for Beneficiary

VI. DISCHARGE AND REFUNDS

  1. Pennsylvania Code Title 55. Public Welfare Chapter 2620 Personal Care Home Licensing.
  2. Landlord and Tenant Act