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#690378 - 02/21/07 04:32 PM condo association lock box
Lele Offline
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Lele
Joined: Feb 2007
Posts: 827
In the Sun
My bank wants to have a new product: a lock box for condo association fees. I am unfamilar with this process as the bank's I have worked for in the past did not have anything remotely like this.

As I understand this process, this is the deal: the condo association members have a coupon and pay their dues this way. their check is made out to the bank; we as the bank process this and give access online to the Condo Association to see who has paid their dues and who hasn't.
Help!
Lele
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Operations Compliance
#690458 - 02/21/07 05:18 PM Re: condo association lock box Lele
uncle_milty_too Offline
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uncle_milty_too
Joined: Mar 2002
Posts: 23
I have built a similar program for tuition collections at private K-12 schools. While quite successful, it took a large sales effort and big investment in IT - online access for both the primary (school/assoc) and secondary (parent/homeowner) customers, various payment method choices (ACH recurring, telephone, web initiated, credit card, coupon) loads of delinquency follow up (mail/e-mail/phone), etc. Schools also like to break down the payments into various fees - associations may need separate tracking for one-time capital assessments, etc. Profitability comes with scale, I can't see making much if you only have local associations participate. Success also breeds competition, so you need to stay ahead.

Compliance issues we needed to consider include GLB privacy, CIP, fair debt collection, nondiscrimination (do all qualify) and TIL (late charges).

You can PM me if you want further details.

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#691630 - 02/22/07 09:14 PM Re: condo association lock box uncle_milty_too
Big Dog Offline
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Big Dog
Joined: Mar 2005
Posts: 2,659
Kennel
My guess is that you are just going to handle the checks received for payment. We have done this service for several customers. You would need a seperate PO Box that the payments are delivered to. The bank picks up the mail, processes the payments (checks) to the account and then provides the association with the coupons to update their records. Association would be responsible for all returned checks just as if they had deposited them personally.
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#691965 - 02/23/07 02:21 PM Re: condo association lock box Big Dog
Lele Offline
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Lele
Joined: Feb 2007
Posts: 827
In the Sun
What kind of disclosures did you do? Anything out there I can use as a template?
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#692557 - 02/23/07 08:07 PM Re: condo association lock box Lele
Big Dog Offline
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Big Dog
Joined: Mar 2005
Posts: 2,659
Kennel
If you are simply processing the checks, you have no disclosure requirements that I am aware of. If you are converting checks to ACH, then your customer would have to disclose that to their customers (homeowners).

I was not involved with the set-up, so I don't have any sample agreements or anything that would help you. Maybe someone has a sample they can send you.
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