Body Corporate Management Fess on late payment.

[poidda]

Can someone tell me if the BC Management company can charge additional fees that aren't set out in the AGM?

I am in the situation where I was 2 weeks late (for the first time ever) on paying my levies due to unforeseen circumstances. I paid the levies asap without the need for a reminder.

It is stated in the AGM minutes that we receive 10% discount if paid on time. Even though I was late, I still didn't pay the "discount".

The AGM minutes also state that and extra 2.5% is paid per month on out standing fees. All pretty standard.

However, 6 weeks later I have received an invoice for the oustanding discount. Fair enough, I was late, I will pay it. But on top of that I have received an extra bill for $88 for late notice admin.

So my question is, can the BC Management Company charge these extra fees that aren't outlined in the AGM minutes? Also they haven't vharged me the 2.5% interest which should be going to the sinking fund?

It all seems like a money grab to me.

 

[DistinctPM]

This is something that annoys me, especially as there is no onus on the Strata Manager to prove they actually issued the invoice in the first place. In Canberra some Strata Manager's charge up to $44 to send a 'reminder notice'. Good news is based on where the banks are at, these fees appear to be penalties as they don't actually reflect the costs incurred by the supplier, therefore they could be illegal and unenforceable.

I'd love to hear from others on this forum in regard to opinions on this.

Being slugged $44 by a Strata Manager to resend an invoice they probably didn't send in the first place is insane. It is nothing more than another way for Strata Management companies to sting their clients.

I wouldn't pay the fee and would send them a letter saying it is an unreasonable penalty and that you would be happy to pay a fee equivallent to the costs incurred by the Strata Manager in raising the additional invoice if they could demonstrate how they determine those costs, the costs are reasonable and they are not something that you are already paying for in your Strata Levies.

I would suggest part of the contract with the Strata Manager may actually state that the fees paid to them include the management and chasing of delinquent accounts which means they are double dipping.

Sorry for the long reply - this really annoys me when Strata Levies are already expensive enough and they you have ridiculous penalties in place. Imagine charging a tenant a late fee for rental arrears follow ups.

 

[Peterw]

I do believe that you should be able to get a copy of the contract that was signed with the Body Corporate Manager, as what fees etc that they can charge, including interest in late payments, will be in there.

Regarding DistrictPM's comment about tenants, I believe in Queensland, the legislation forbids charging tenants additional fees etc, however you can sign them up to a "discount" structure for prompt payments etc. Not sure how many people do this though.

 

[DaveM]

Pay them $1 extra to cover the cost of the envelope, paper and stamp.

 

[marg4000]

In all fairness, you knew you were late. Why didn't you pay the full amount (as advised on the notice) as you were not entitled to the discount for payment before the due date?
Marg

 

[poidda]

In all fairness, you knew you were late. Why didn't you pay the full amount (as advised on the notice) as you were not entitled to the discount for payment before the due date?
Marg

Because I've never been late before and thought seeing it was a discount, being slightly late still was OK.

As I said, I'm fine with paying the discount. My bad. It's the money grab by the Management Company that I refuse to pay. If they can justify their fees, than they can go through the Dispute center to get them.

http://www.qcat.qld.gov.au/matter-t...rate-and-community-management-scheme-disputes

 

[Spades]

Body corp should be run by the government,same outcome.

 

[redwing]

We've received (first) notices saying we are late, we've also received (first) notices sent out after the due date