Late Fees

We have instituted some late fees for people who haven't paid their dues on time. However, is anybody aware of any laws that prohibit organizations charging more than a certain percentage. My husband brought up this point there is a major crack down on credit cards and other institutions in Pennsylvania saying that if you charge a late fee over a certain % that it is consider gouging?

Sharon,

You should check your policy against PA law and then run it by the Association attorney prior to implementation.

Here are some notes from PA Uniformed Planned Community act

"(b) Allocation and interest.--Except for assessments under subsection (c), all common expenses shall be assessed against all the units in accordance with the common expense liability allocated to each unit in the case of general common expenses and in accordance with subsection (c) in the case of special allocation of expenses. Any past due assessment or installment thereof shall bear interest at the rate established by the association at not more than 15% per year." - 5314. Assessments for common expenses

"Unless the declaration otherwise provides, fees, charges, late charges, fines and interest charged under section 5302(a)(10), (11) and (12) (relating to power of unit owners' association) and reasonable costs and expenses of the association, including legal fees, incurred in connection with collection of any sums due to the association by the unit owner or enforcement of the provisions of the declaration, bylaws, rules or regulations against the unit owner are enforceable as assessments under this section. If an assessment is payable in installments and one or more installments are not paid when due, the entire outstanding balance of the assessment becomes effective as a lien from the due date of the delinquent installment." - 5315. Lien for assessments