Can an HOA or Mgmt company hired by HOA charge a finance charge on top of dues or late fees owed?

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Can an HOA or Mgmt company hired by HOA charge a finance charge on top of dues or late fees owed?

The management company that was hired by the HOA is charging over 500 in
finance charges to my overdue balance of HOA dues. This is on top of the late
fees. I understand I owe the HOA dues and the late fees but do not believe I
owe a finance charge. I have never been informed that there would be a loan
taken out against dues I owe or that I would be charged a finance charge. I
only found this out when I received a bill not itemized that stated ‘Notice
of Intent to File a Lein’. I then had to ask for a detailed statement since
this notice did not detail each transaction or amount owed. I have only
received two 2 statements, ever. They do not send paper or electronic
statements. I would have questioned these finance charges sooner. I have
attempted to offer full payment of HOA dues and late fees, but have asked that
the finance charges be removed. I was denied this action as they stated the HOA
board would not allow it.
I do not understand what the finance charges are for and was not informed they
would be charged. I need to find out what my options are for recourse in this
matter.
Thank you kindly,
Gabriella Dorrity

Asked on August 9, 2019 under Real Estate Law, Colorado

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

They can charge those fees, and only those fees, authorized by the Association's rules & regulations or the community's by-laws. So you need to check those rules, etc. to see what you can be charged: if a finance fee is allowed, you can be charged it, otherwise not. The management company cannot charge you whatever it wants; it must have legal authority for the charge, which is found in the association's rules, etc.


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