Late HOA Fee charge

[draco]

What is the name of your state? Minnesota

I was set up on autopay for my HOA fees. They started charging for monthly ACH withdrawals, so I switched to BillPay from my bank.

Apparently my payment arrived several days after what they claim is the date before they charge a late fee. Nothing on the regular monthly statements indicates an actual due date nor anything about a late fee. I just received a late fee on my next statement.

Doesn't the monthly bill have to indicate the due date and if there's a late fee?

 

[xylene]

What happened when you called them and explained the situation and politely asked if the fee could be waved as a courtesy for an unexpected bank issue?

 

[Zigner]

What does your HOA contract say is the due date?

 

[quincy]

If you are receiving a paper bill in the mail, the bill should include a due date but bills often don’t list late fees. Any payment received after the due date, however, is generally subject to a late fee.

You can read over your association’s governing documents to see if there is mention of association fees, due dates for fees, and the amount that will be charged if payments are late, and/or you can contact the HOA’s Board if you are unsure of the actual due date and when late fees will be assessed.

Once you find out the actual due date, I recommend you pay the fees well in advance of the due date to avoid the risk of late charges.

 

[draco]

I emailed the management company, so I'd have a record. They said it's due on the 1st, late fee on the 16th, and pay earlier next time. Ignoring everything else.

I'll have to dig out the HOA contract and check. I've lived here for almost 10 years and this is the first time I've had an issue.

They email a bill. There's no due date listed. The HOA fee is dated the 1st, but it doesn't say that's the due date. It's when they charge it to you.

Does anyone know if there are any Minnesota or Federal laws that cover this?

 

[Bali Hai Again]

I emailed the management company, so I'd have a record. They said it's due on the 1st, late fee on the 16th, and pay earlier next time. Ignoring everything else.

I'll have to dig out the HOA contract and check. I've lived here for almost 10 years and this is the first time I've had an issue.

They email a bill. There's no due date listed. The HOA fee is dated the 1st, but it doesn't say that's the due date. It's when they charge it to you.

Does anyone know if there are any Minnesota or Federal laws that cover this?

See below:

https://www.ag.state.mn.us/consumer/Publications/CondoTownAssoc.asp

i could not locate any information regarding this on the US Department of Justice website.

 

[quincy]

I emailed the management company, so I'd have a record. They said it's due on the 1st, late fee on the 16th, and pay earlier next time. Ignoring everything else.

I'll have to dig out the HOA contract and check. I've lived here for almost 10 years and this is the first time I've had an issue.

They email a bill. There's no due date listed. The HOA fee is dated the 1st, but it doesn't say that's the due date. It's when they charge it to you.

Does anyone know if there are any Minnesota or Federal laws that cover this?

I suggest you check your HOA documents to see what it says about association fees but the date on the bill would generally be the due date. There is no reason why a bunch of other dates would be listed.

 

[LdiJ]

I suggest you check your HOA documents to see what it says about association fees but the date on the bill would generally be the due date. There is no reason why a bunch of other dates would be listed.

Are you sure that is what you mean? If a bill is dated 1/1/23 then it would not make sense for it to also be due 1/1/23. That would be setting people up to be late. Generally bills are dated when they are sent out, and there is a separate due date listed on the bill.

 

[Zigner]

Are you sure that is what you mean? If a bill is dated 1/1/23 then it would not make sense for it to also be due 1/1/23. That would be setting people up to be late. Generally bills are dated when they are sent out, and there is a separate due date listed on the bill.

Not disagreeing...

Just pointing out that the due date may be specified in the contract with the "bill" being simply a courtesy notice/reminder and not an actual "bill."

 

[quincy]

Are you sure that is what you mean? If a bill is dated 1/1/23 then it would not make sense for it to also be due 1/1/23. That would be setting people up to be late. Generally bills are dated when they are sent out, and there is a separate due date listed on the bill.

The way it would make sense is if the payment is due upon receipt of the bill.

 

[LdiJ]

The way it would make sense is if the payment is due upon receipt of the bill.

As an accountant and someone who has done billing for many different companies/industries over the years I have to disagree. Even bills that are due upon receipt allow time for mailing both the bill and the payment. Even with email it is not logical for a bill to be due the date is sent out. Now, Zig's theory that the bill is not an actual bill but a courtesy notice/reminder does have some logic behind it.

 

[festival]

By the way, I suggest you pay the late fee before next month. If you don't pay the late fee, then you will have an outstanding balance and they may be able to charge another late fee, just because you did not pay the late fee. That is illegal in some states, but may be possible in your state.

 

[quincy]

As an accountant and someone who has done billing for many different companies/industries over the years I have to disagree. Even bills that are due upon receipt allow time for mailing both the bill and the payment. Even with email it is not logical for a bill to be due the date is sent out. Now, Zig's theory that the bill is not an actual bill but a courtesy notice/reminder does have some logic behind it.

It is called “due on receipt” but that simply means you are expected to mail the payment or initiate a form of payment on that date.

The following link is to an Intuit Quickbooks article about “due on receipt” billing (this is not an endorsement, just a good explanation):

https://quickbooks.intuit.com/r/invoicing/invoice-due-upon-receipt/

Have you never received a medical office bill like that?

 

[Bali Hai Again]

It is called “due on receipt” but that simply means you are expected to mail the payment or initiate a form of payment on that date.

The following link is to an Intuit Quickbooks article about “due on receipt” billing (this is not an endorsement, just a good explanation):

https://quickbooks.intuit.com/r/invoicing/invoice-due-upon-receipt/

Have you never received a medical office bill like that?

Since there are usually no interest or late payments associated with medical bills, I make them wait 3 or 4 months before I pay the ”full amount” from the time they sent the bill demanding “payment in full”. There is a lot of sabre rattling on their part during that period. The medical profession is very efficient at billing and double billing.

 

[Zigner]

Since there are usually no interest or late payments associated with medical bills, I make them wait 3 or 4 months before I pay the ”full amount” from the time they sent the bill demanding “payment in full”. There is a lot of sabre rattling on their part during that period. The medical profession is very efficient at billing and double billing.

In other words, you enter into a contract to have a service performed with prompt payment expected, and then, after the other party fulfills their part of the contract, you breach yours.

EDIT: I totally get why you do it, and I don't even blame you particularly...I'm just restating what you're doing