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?
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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 8 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.
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