Condo Association Dues

[BruceZ]

Illinois

I pay dues to a condo management association. Since 2005 I've had them withdraw the same amount automatically from my bank account every month. In February, they decide to raise my rates by about 10%. They want a new authorization form to withdraw the larger amount. I never send them this form. The last form that I sent authorized them to withdraw a certain amount until further notice. Months go by, and they take nothing from my account. Now they want me to pay late fees and finance charges for all of the months, plus legal fees.

I told them that I had authorized in writing for them to withdraw a given amount until further notice, and if they didn't withdraw that amount, then that is the same as if I wrote them a check that they never cashed. I argued that I should only owe late fees and finance charges for the amount that would have been late had they made those withdrawals, which is less than half of a single payment. They didn't respond to that.

I think I am going to pay what I think I owe, and tell them to let their lawyers take whatever action they want to get the rest. Then when they don't win, they can pay their own damn legal fees. I'm tired of these people making up their own internal rules and pretending that it's the law.

What is the chance that I can prevail here?

 

[NC Aggie]

What is the chance that I can prevail here?

NOT A CHANCE!! By not authorizing the new automatic payment amount, the management company was no longer able to draft your association fees. Many companies/entities cannot and will not do partial payments. You knowingly allowed these fees to go unpaid for several months, thus you have to pay the penalty.

 

[dmcc10880]

You actually have two chances of prevailing. 1. Slim. 2. None. You're likely looking at the HOA foreclosing at worst or placing a lien on your condo at best.

 

[BruceZ]

OK, thanks guys, but they did have my authorization to withdraw a particular amount until I gave further notice. I felt that had the same legal power as a check. They even had an actual voided check from my bank. They had withdrawn that amount since 2005, so if it was legal for them to do that then, I don't see why it isn't legal now. All my other bills are paid automatically with a different amount each month. I understand that their internal policy prevented them from withdrawing a smaller amount, but their internal policy is different from the law, isn't it? Can you cite a law that clearly indicates that I'm wrong?

In my state, can they kick me out of my condo without going to court for only withholding a small percentage of what they say I owe, even if I dispute the rest?

 

[dmcc10880]

OK, thanks guys, but they did have my authorization to withdraw a particular amount until I gave further notice. I felt that had the same legal power as a check. They even had an actual voided check from my bank. They had withdrawn that amount since 2005, so if it was legal for them to do that then, I don't see why it isn't legal now. All my other bills are paid automatically with a different amount each month. I understand that their internal policy prevented them from withdrawing a smaller amount, but their internal policy is different from the law, isn't it? Can you cite a law that clearly indicates that I'm wrong?

In my state, can they kick me out of my condo without going to court for only withholding a small percentage of what they say I owe, even if I dispute the rest?

My suggestion? Go and pay the dues in arrears. Get yourself caught up. Try and negotiate the removal of interest, late fees and other costs you're being charged with. Your HOA, if it's like mine just wants members to pay their fair share to pay for common area maintenance, repairs, operating expenses and reserves for future maintenance and repairs.

 

[BruceZ]

My suggestion? Go and pay the dues in arrears. Get yourself caught up. Try and negotiate the removal of interest, late fees and other costs you're being charged with. Your HOA, if it's like mine just wants members to pay their fair share to pay for common area maintenance, repairs, operating expenses and reserves for future maintenance and repairs.

That's good advice; I will definitely do that in any case. It's just that if the negotiations turn into threats to go to court, I'm wondering what kind of legal chance I would have. And whether I'd be going to court from a box on the street.

 

[dmcc10880]

That's good advice; I will definitely do that in any case. It's just that if the negotiations turn into threats to go to court, I'm wondering what kind of legal chance I would have. And whether I'd be going to court from a box on the street.

I don't think you're going to have a chance in court. And the reason is based on your governing documents, the HOA is likely to be awarded the dues in arrears, late fees and attorneys costs. Therefore, my suggestion is to de-escalate and work things out.

Remember, they requested that you provide a new authorization for the increased HOA dues. You admitted that you did not provide it. Therefore, they did not collect the dues.

Seriously, I think a little humble pie and reasonable desire to make yourself and the association whole will get you a long way to resolving the matter.