If a renter with BondCover fails to make payment in accordance with a tribunal order, 30 days after the date of the order the owner or property manager may claim the amount under Snug BondCover.
Snug will then take the following steps:
- Verify the tribunal order and claim of default with the owner and renter.
- Promptly settle the valid claim with the owner or property manager.
- Offer the renter the opportunity to reimburse Snug.
If the renter does not reimburse Snug within 14 days, Snug may:
- Cancel any current BondCover certificate. Deny any future BondCover application from the renter.
- Record the default in the renter's profile- this may affect the renter's future ability to rent.
- Notify tenancy database providers of the default, where permitted by law.
- Appoint a debt collection agency or lawyers to recover the amount of the claim, interest and our recovery costs.
Snug does not use collection services that impact on a Renter's credit score.