Legal Question in Credit and Debt Law in California
Non-Profit CC Collection
We are a private Country Club. Our members have accounts that they charge their meals, drinks and Golf on. The statements go out every month on the 1st and are to be paid by the last day of the month. We have a member whom owes us several thousands of dollars and hasn't made a payment in months. We have stopped his charging priveleges but have still not received any payments. The Board sent him a letter to join the board meeting by a delivery service to his work, and he did not attend. Hoe can we collect the money from him?
2 Answers from Attorneys
Re: Non-Profit CC Collection
If he owes $5000 or under, you can go to small claims court to collect. If more, you will have to go to regular court. Feel free to contact me if you'd like to discuss this further.
Re: Non-Profit CC Collection
Be careful about calling or sending notices to third parties or otherwize publicizing the member's arrearages. You could run afoul of fair debt collection practice laws. Call me or some other lawyer, leave the soiled laundry to us.
It might also be a good idea to have a lawyer take a look at your by-laws and membership agreements with a view toward ensuring that, for example, members with serious arrearages can be held liable for interest and collection costs including attorney fees.
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