A number of organizations require members to pay membership dues, such as country clubs and fraternal organizations. These dues can be considered a payment for services to the organization, one secured by a contract. If a person fails to pay these dues, he can be found in violation of the contract. Theoretically, the organization could hire a collection agency to extract payment from the debtor.
Membership Dues
Although a failure to pay membership dues may not strike the same chords of fear in debtors as, say, a failure to pay back a credit card, dues are not optional. If a contract specifically requires a person to pay a set amount to an organization to retain membership, then he has a legal responsibility to do so. If not, he could face a breach of contract lawsuit or collection actions by creditors.
Membership Suspension
An organization can only seek to collect on a membership fee if the fee is, in fact, past due. Some organizations -- AAA, for example -- are structured so that if a person fails to pay his membership dues for a particular period, his membership is suspended until he pays his fees. However, if a person has enjoyed membership for a period he did not pay for, he is legally required to make good on this debt.
Collection Agency
Collection agencies can be hired by creditors to seek out payment on nearly any form of debt, including membership. When a collection agency is hired by a creditor, the collection agency becomes a kind of representative of the creditor who carries all his employer's legal rights in regard to debt collection. In addition, a collection agency may sometimes buy a debt outright, meaning the debtor must make payment to the agency, not the party to whom the debt was originally owed.
Considerations
While an organization would not be legally prohibited from hiring a collection agency to collect dues, it might not find it worthwhile to do so. This is because collection agencies can be expensive, with companies usually charging the creditor a percentage of the money it collects. If the debt is small enough or the dues can be collected by other means, the agency may well decide against hiring an agency.
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