Member Direct Billing means what it sounds like. Every individual Board member would be responsible for providing payment of their dues and fees directly to the FVREB, rather than through their brokerage.
Resolution 4 would revise the Board’s By-laws to permit a Member Direct Billing option for brokerages who requested it. Even if the members approve this resolution, it doesn’t mean the Board would be switching everyone over to Member Direct Billing.
Member Direct Billing is a value-added service that many of our brokers have been requesting for a long time, because it would lessen their administrative burden, particularly for those brokerages with more than one office and many members.
Any brokerage that preferred to stick with the current system of collecting fees and dues from members in their offices and submitting payments to the Board themselves, can do so.
However, if a brokerage chose Member Direct Billing, all the members in that office would be required to pay their dues directly. No single member could opt out of it..
And the 7.5% rebate brokerages receive for providing this service would no longer be available to those that switch to Member Direct Billing.
The Board has a fully developed business plan for Member Direct Billing, including maintaining the service over the long term. Digital banking and accounting are now the norm and the Board must offer these kinds of services if it hopes to stay competitive.
How does a brokerage sign up with Member Direct Billing?
Once the brokerage has notified the Board it is opting for Member Direct Billing, the members in that office will be asked to provide a credit card number to the Board, authorizing it for automatic withdrawals for payment of fees and dues including those for CREA and BCREA. This would all be done through the Member Portal. Invoices will be sent out to members who pay directly, prior to due dates.
What happens if a member fails to pay their dues and fees?
If a brokerage has signed up for Member Direct Billing, the Board will send out invoices and reminders directly to the Members and there would be a short grace period. Non-payment of fees and dues is extremely rare at our Board, but members who do not honor their accounts could lose service which would only affect that member, rather than the entire brokerage.
As with many of the Board’s proposed resolutions, this one is intended to increase the range of services and improve members’ choices.