The Delinquent Accounts Policy (the “Policy”) is to provide a framework for the consistent handling of member accounts which have fallen into a state of delinquency pertaining to the timely submission of reports and/or remittances.
For the purposes of this policy, “Board” means the CESA Board of Directors and “Program Manager” means the assigned and contracted administrative management company(s) for the CESA program.
“Delinquent” means a member who is late or overdue on submission of reports and/or on remittances.
Delinquent Account Classification Categories: CESA uses two delinquent account classification categories (“Categories”), defined as follows:
(a) “short-term” delinquency means member accounts that are delinquent in either reporting sales units or remitting payment for sales units for a period of less than 90 days from the date the report(s) and/or remittance(s) was due;
(b) “long-term” delinquency, which means member accounts that are delinquent in either reporting sales units or remitting payment for sales units for a period of more than 90 days from the date the report(s) and/or remittance(s) was due.
Delinquent Account Criteria:
Any account for which reports and/or remittances are not current and up to date may be considered an account in a state of delinquency. Allowing for time lags in postage and other potential delays, an account is considered delinquent and will be contacted via the communications schedule outlined in the Communications with Delinquent Account Members section below, when one of the following criteria are met:
(a) Reports are outstanding by more than 60 days from the date the report was due.
(b) Reports have been submitted, but no remittance received, and the account’s balance exceeds $50.00 (fifty dollars). If the account continues to default on reporting and remitting, but does not meet the minimum threshold of $50.00, the member will be contacted if/when the threshold is met, and shall be considered a long-term delinquent account regardless of time period over which the account was delinquent.
It is the responsibility of each member to ensure both reporting and remittances are current and up to date. In the event that an account becomes delinquent, all costs associated with the recovery of the overdue amounts will be the responsibility of the member. A flat fee of $25 will be applied to each report or remittance that is classified as a short-term delinquency, which is not received within 90 days from its due date. These fees are intended to cover the administrative costs incurred to recover the debt. If the member account is not paid in full and falls into a “long-term” classification, an additional $25 flat fee administrative penalty will be applied to the account. These fees are intended to cover the continuing administrative costs incurred to recover the debt.
Communications with Delinquent Account Members
It is the responsibility of the Program Manager to identify delinquent account members, and to provide such information at the monthly CESA Finance Committee meeting, as well as at the quarterly Producer Relations Committee meeting. Based on the category into which the member account falls, one of two forms of communication will be exercised, by the Program Manager:
(a) Short-term: Members with a short-term delinquency will be contacted via email after 60 days, using both primary and secondary contacts, to inform the member of the state of delinquency. A standard template (attached as appendix A) will be used in all cases.
(b) Long-term: Members with a long-term delinquency will be contacted via registered mail after 90 days, using the primary and secondary contact mailing names and addresses. A standard template (attached as appendix B) will be used in all cases. If no response is received from members with a long-term delinquency within 30 days of receipt of the registered mail notification (appendix B), a termination of membership notice will be issued to the primary and secondary contact mailing names and addresses by registered mail, and the Ministry of Environment will be copied on the termination notice. A standard template (attached as appendix C) will be used in all cases.
Any information pertaining to a delinquent member’s accounts that is disclosed to a recipient who is subject to this Policy shall only be disclosed to and used by those of the recipient’s employees, agents or representatives who have a legitimate need to know such information, are aware of the confidential nature of such Information and agree not to use or disclose same except as permitted herein.
As stated in section 5.2 of the CESA Membership Agreement, this policy may be enforced by way of injunction or any other equitable or other relief deemed appropriate. CESA may pursue any remedies available to it in contract or at law, in addition to any other remedies available to CESA, including termination of the Member’s membership in CESA. Nothing in this Policy shall be interpreted or applied contrary to the CESA by-laws, Articles, the Canada Not-for-profit Corporations Act or Regulations, or applicable privacy legislation.