Association Dues - HOA - ClickPay - all payment methods require a surcharge

[LdiJ]

I'm quite sure my HOA pays them for this service, why should I pay twice?

If you read what I wrote, you would already know the answer to that question. However I will try again.

Money does not go electronically directly from your bank to your HOA, or anywhere for that matter. All electronic transfers go through a servicer who accepts the money and forwards it to the appropriate party. Those servicers are businesses who have to make money in order to exist.

So, if the fee is $3.00 either the receiving party pays the fee, or the paying party pays the fee. I suppose it is also possible for it to be set up that the paying party and the receiving party split the fee. However, one way or another there is a fee to be paid.

Obviously in the past your HOA absorbed the fee. Obviously they are now choosing not to do so.

 

[cinderbeau]

We all are. You don't seem to understand the answers that you are being given.

So you are an attorney, in Minnesota?

 

[cinderbeau]

So you are an attorney, in Minnesota?

Just a yes or no is sufficient

 

[cinderbeau]

If you read what I wrote, you would already know the answer to that question.

I'd just like to add, if my HOA chose this company, and they agree this is the company to collect the association dues, and they pay them for it, they do pay them for that service of collecting this debt from the homeowners - then they paid them. I still don't understand how your response means I need to pay them twice, just for being a for profit business. They're already paid.

 

[LdiJ]

I'd just like to add, if my HOA chose this company, and they agree this is the company to collect the association dues, and they pay them for it, they do pay them for that service of collecting this debt from the homeowners - then they paid them. I still don't understand how your response means I need to pay them twice, just for being a for profit business. They're already paid.

I very plainly explained that to you multiple times now.

 

[cinderbeau]

If you read what I wrote, you would already know the answer to that question. However I will try again.

Money does not go electronically directly from your bank to your HOA, or anywhere for that matter. All electronic transfers go through a servicer who accepts the money and forwards it to the appropriate party. Those servicers are businesses who have to make money in order to exist.

So, if the fee is $3.00 either the receiving party pays the fee, or the paying party pays the fee. I suppose it is also possible for it to be set up that the paying party and the receiving party split the fee. However, one way or another there is a fee to be paid.

Obviously in the past your HOA absorbed the fee. Obviously they are now choosing not to do so.

So, this is exactly what I mean. I'm sorry I made any other responses.

ClickPay says I need to pay $3 to transfer funds that is paid to ClickPay - but that's the only option I have. End.

 

[LdiJ]

So you are an attorney, in Minnesota?

No I am not. However, this is not a legal issue. It is a business one. Your HOA controls this. Your beef is with them. If you don't like it lobby them to change things.

 

[cinderbeau]

No I am not. However, this is not a legal issue. It is a business one. Your HOA controls this. Your beef is with them. If you don't like it lobby them to change things.

Thank you, the first actual answer to my question!!!!

 

[cinderbeau]

but is it legal for my HOA collection company to charge for ACH transactions?

 

[quincy]

The short answer to your question is, “yes, it is legal.”

 

[Zigner]

You could always lobby the board HOA to change providers to one that does not charge so much.

 

[quincy]

You could always lobby the board HOA to change providers to one that does not charge so much.

The $3 fee is pretty standard.

 

[adjusterjack]

ClickPay says I need to pay $3 to transfer funds that is paid to ClickPay - but that's the only option I have. End.

You didn't need two pages and a lot of kvetching to figure that out.

 

[Taxing Matters]

I agree with you, and if it was $3 from my bank I'd absolutely agree. But it's $3 that a 3rd party has decided to collect, and that is absolutely beyond my control. I had a choice when I bought this house, and committed to this HOA, to pay the HOA fee - yes, I bought this house. But I didn't agree to having a fee charged on top of my HOA payment to this third party debt collection service. What if ClickPay decides they want to charge $15 for a ACH transfer? $20? Why is $3 okay?

The answer to that is what authority the HOA has to impose fees on homeowners. Sure, the HOA is not itself charging the fee directly but it selected the payment processing company that does charge the fee for payment of the HOA dues. ClickPay is simply the HOA's agent in collecting the fees. The HOA has to follow what the HOA documents say. So the issue is whether there is something in the HOA governing documents that may reasonably be interpreted to conclude the HOA either must provide some fee free way of making payments, that the HOA can't pass on the fee to the homeowners, or that the HOA lacks the power to spend money for those fees and to impose the fees on the homeowners. If the problem is that there is a fee free way to pay but it's just not a convenient way for you to pay because it's not an online payment system, you'll probably lose on that.

 

[quincy]

So, this is exactly what I mean. I'm sorry I made any other responses.

ClickPay says I need to pay $3 to transfer funds that is paid to ClickPay - but that's the only option I have. End.

If there is really no option available to you to pay the dues without incurring the fund-transfer fee, speak to your HOA. Get other HOA members to speak to the HOA. Make some noise.

But if you are looking for the convenience of paying your dues electronically without incurring a transfer fee for this convenience, you will probably be disappointed.

Good luck.