If we were behind on our HOA dues so entered into a repayment arrangement but we weren’t told that there would be interest charges as well, do we have any recourse?

Get Legal Help Today

 Secured with SHA-256 Encryption

If we were behind on our HOA dues so entered into a repayment arrangement but we weren’t told that there would be interest charges as well, do we have any recourse?

Entered into a payment plan which was drafted by the HOA attorney. Completed the required payments 10 months ago. Now, we have been advised that we still owe over $1300 in interest on those payments. When this payment plan was presented to us, there was no mention of additional interest. Had we been told of the interest, we would have included that in the payments but we took the attorney’s offer to mean this was what was needed to satisfy our debt to the HOA. According to the letter just received, they are charging us 10% interest and expect this to be paid in less than 7 days now. We will pay it but cannot pay in full in this short amount of time.

Asked on September 23, 2015 under Real Estate Law, Georgia

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Go back to your original written agreement.  The HOA cannot charge interest on past due amounts if a the agreement doesn't mention it and b your bylaws don't mention it. 
Review both documents and then if neither mention interest, provide both letters in your response to be sent via certified mail to all parties to highlight their inability to charge interest and your refusal to pay a nonrequired fee. Then contact your city attorney's office, who may have authority over HOA agreements.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption