Collecting Overdue Accounts

Methods of Timely Collections

  1. All Dues for the academic school year are due two weeks after returning to school every fall quarter.
  2. In all cases, have each brother sign the board and dues contract, and stress that it is a legally binding agreement. After having signed such a document, members are required to make prompt payments.
  3. Educate the associate & initiated members on the need to share in the financial responsibility of supporting the chapter and fraternity.
  4. Send a letter to parents whose sons have accepted a bid to associate, explaining the financial commitment involved in fraternity affiliation.
  5. Send letters each summer to members with an outline of the chapter budget, financial obligations and due dates.
  6. Give associate members an opportunity to have their bills sent directly to their parents.
  7. When a member makes a payment, credit the fines and miscellaneous bills before crediting the dues.
  8. Ask each member to pay an extra sum of money for a personal accommodations account from which fines and damages can be deducted. At the end of the year, the unused money can be returned or credited toward next year’s bills.

Methods to Collect Delinquent Accounts

  1. If a member is financially unable to make the entire payment on the established due date, design a payment plan which will allow the member to pay in monthly installments. Make sure a promissory note is signed.
  2. For those members who are financially able to make the payments promptly but have neglected to do so, a penalty system may be established to encourage them to be more responsible. The penalties could include restricted participation in intramurals and limitations on social privileges. Chapters incur finance charges of 1.5% per month once the balance is older than 30 days, so it is not unreasonable for a chapter to do the same to its delinquent members.
  3. Parents of negligent members should be sent a letter informing them of their son’s financial delinquency the day the bill becomes past due. Often this will get the desired results. Remember to be courteous; however, remain firm in explaining the need for members to be prompt in payment.
  4. After the collection date has passed, those brothers who still owe money should be required to appear before the Executive or Finance Committee to explain how much he owes, why, and when he plans to pay it.
  5. Another way to stimulate collections on those who have delinquent bills would be to announce their names at the chapter meetings. Tell all members the social budget for the semester will be cut by the total amount of money owed, and then watch the reaction. Also post the names and amounts owed where everyone can be reminded daily of those members who are delinquent.
  6. If, after 60 days, the payment is still not made, the chapter has several options. These options should be outlined in the chapter’s Bylaws.
    1. After a hearing, suspend the member or recommend expulsion to the Board of Governors.
    2. Attempt to recover the unpaid monies through the Small Claims Court.
    3. Call the member in front of the Board of Governors.


How to use small claims court
Sample letters for collections


Being a brother involves more than showing up for social/athletic activities. A member who does not have sufficient integrity to pay his lawful bills does not deserve the privilege of being a brother of any fraternity.

Fraternalism will prosper only when each affiliate takes an equal part in financing the activities of the chapter and Fraternity.

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