Does the management company have a right to accrue interest on my account?

[Paulk]

Hi All,


I would be grateful for any advice on the following.


My apartment complex has been taken over a new company and I recently received an invoice for this year and outstanding fees from last year.


I was late paying fees from last year, as the previous company did not issue an invoice or any reminders. It was only after I phoned the company about a problem that they said fees were outstanding. I immediately paid half of the fees for the year and explained I did not receive any invoice.


The company did not send any receipt or invoice for the outstanding amount.


When a new company took over, I was informed in writing that interest had been accrued from the outstanding amount from last year. I explained that I never received an invoice (for last year's fees) and will make every effort over the next two months to pay all outstanding fees minus the interest accrued.


Their response was that I was invoiced and as I was 6 months late paying, they will be charging the interest and adding more if I do not pay all the outstanding fees immediately.

My question is, can they make me pay the interest as I never received any invoice (for the previous year's management fees) in the post? Would they not have to send an invoice by registered post or at least phone me regarding outstading fees before applying interest?

Any advice would be much appreciated. Thanks

 

[DianeC401]

Check the terms of your lease. Many state that interest can be charged if fees are late. If that is the case I don't think you will have any comeback. Non-payment or late payment of fees can be a huge problem for management companies as services still have to be provided and suppliers paid. Charging interest is one of the few ways management companies have to persuade owners to settle bills promptly.

Not having seen an invoice is not generally considered a good enough reason - owners know this is a regular annual bill and that they are obliged to pay it. It seems a little harsh if your bill genuinely went missing but think of it from the MC's point of view and everyone could say the same and try to get out of paying fees/interest this way.

Sending everyone's bill by registered post would be unworkable; expensive for the company and inconvenient for residents who are out at work all day. No other regular bills come by registered post (ESB, Bord Gais etc) so why should the management fees? You should not need to be 'chased' to pay a bill, the onus is on you to organise and plan for regular bills.

In our MC interest is sometimes waived as a 'goodwill' gesture if outstanding fees are paid promptly, the next year's fees are settled promptly and/or if the owner has a genuine case. If you have always paid previous fees on time and have a good record this will help your case. It might be worth reiterating this once more in a letter or contacting the MC Board of Directors directly. But if you still don't have any joy, I would just settle the account and notch it up to experience.

Finally, do your management company let you settle the fees on a monthly, quarterly or half yearly basis? I am lucky that our MC have let people pay by direct debit. This is very handy - I don't have to worry about saving for a large yearly bill and remembering to send payments manually. This could help for paying fees going forward so may be worth raising with them.

 

[Paulk]

Many thanks for your advice Diane.

I paid all the outstanding fees and the MC cancelled the interest.