Our HOA has a late payment rule whereby we charge 10% of what is due, and annual non-cumulative interest of 12%. At about 3:15 in this video, the collection agency indicates that it will retain the late fees, and mentions a different set of late penalties than exist in our governing documents. Does this collection company intend to keep all of the late fees and interest, or just that related to the percentages indentified by the collection company in this video? Are the collection company's late fees and interest additional to those in our governing documents? If they are additional, how might this relate to our state's possible limitation on interest that can be charged regarding late payment penalties? If we use this collection company, are collections automatically refered to them by Community Financial, or is that first approved by our HOA?
Hello, Thanks for our question. To work with Axela the Board first approves using them our staff makes the introduction. Axela's fee is they keep the late fees and interest. In my experience this is much more economical than paying an attorney an hourly rate. They late penalties mentioned in the video are for discussion purposes and they take into account the governing docs and state statutes when not provided for in the governing docs.
Our HOA has a late payment rule whereby we charge 10% of what is due, and annual non-cumulative interest of 12%. At about 3:15 in this video, the collection agency indicates that it will retain the late fees, and mentions a different set of late penalties than exist in our governing documents. Does this collection company intend to keep all of the late fees and interest, or just that related to the percentages indentified by the collection company in this video? Are the collection company's late fees and interest additional to those in our governing documents? If they are additional, how might this relate to our state's possible limitation on interest that can be charged regarding late payment penalties? If we use this collection company, are collections automatically refered to them by Community Financial, or is that first approved by our HOA?
Hello, Thanks for our question. To work with Axela the Board first approves using them our staff makes the introduction. Axela's fee is they keep the late fees and interest. In my experience this is much more economical than paying an attorney an hourly rate. They late penalties mentioned in the video are for discussion purposes and they take into account the governing docs and state statutes when not provided for in the governing docs.