Definition
A written, board-adopted policy defining how the HOA handles late payments — reminders, fees, notices, and escalation.
A collections policy is the association's written procedure for handling delinquent accounts. Applied consistently, it protects the community's finances while keeping enforcement fair and defensible.
A good policy defines when a payment is late, what late fees or interest apply, the sequence and timing of reminders and formal notices, and the point at which liens or legal action begin. Following the same steps for every owner, every time, is what keeps collections out of dispute.