Should a late fee be posted IF???

Heres the situation. Manager started doing the ACH for condo fees. Are policy is due by the first. They have til the 25th then a late fee goes on their account by the 26th.. With the ACH if someone pays by checking account the money comes out it gets into the checking account the next business day. If someone pays with a credit card. It takes four days to get into our checking account. meaning pay on the 25th. on a friday. IT gets into our checking account on the tuesday 29th is what I saw in the financials. What would your condo assosciation follow.

1) it is not late because the transaction happened on the the last day before the late fee date but the funds do not make to the checking account.. Who cares if it takes a long time to make it to the HOA checking account

2) Because they get 25 days past the first to pay their fees. They shouldnt be given and extra 4 days for the money to hit the checking account. without a late fee attached to their account.

3) Be thankful they are paying their fees and ignore.

Which would your HOA follow. TY in advance...

Me I use to be an auditor and if the other unit owners pay and get their fees in by the 25th. why are the other unit owners aloud extra time before the money hits out checking account. Its all about having the money in the account by the 25th so we can use it and spend it on things we need done. So a solution anyone using this service for Credit cards has to pay by the 21 otherwise they could be subject to a late fee. Am I thinking right. This could be an auditors find. It is not fare that someone s fees gets put into our checking account after the late fee date and does not incure a late fee. Please help me to understand what your view is on this subject.

I have to present this to the board and management. that it isnot right. So as a solution if a unit owner is paying by credit card through the ACH we will wend a memo to all unit owners must pay by this date or possibility of late fee..

This was my first thought as well. We have people who pay by check and, say, the check arrives at the PM's office on Tuesday but they hold them and deposit a batch all at once on Thursday or Friday... it's not late. Look at the actual bank statement which will show the exact date, not the financials which aren't always precise as to dates received, deposited and credited to various accounts. However, if you're right and the actual CC payments don't come through for several extra days past the deadline, then they are late.

The date on the statement is for when it was/should have been posted not deposited.

IF the check arrives on Tuesday, it should be posted that day, when it gets deposited shouldn't affect the homeowner.

Yes but the Credit card does not get posted til 4 days later. because that's when it arrives to management by computer. last day due 25th. unit owner goes in pays with credit card.. So you are saying because the management has records of it coming in from unit and we dont physically have the funds that it is ok.. and we should wait til the credit card company posts it into our checking account of 4 days later the 29th. Im just trying to understand. This is how the manager feels about it. My question If we get audited. How is the auditor going to feel about it. When thee is a rule to follow and the funds are not physically present during the audit. and she wonders why isnt their a late fee on this account.becasue she is doing the audit on the 27th.

Our owners can pay via electronic each month or set up automatic each month. They can pay via check. No service charge from us.

They can pay by via credit or debit card but there is a service charge. $2 to $4, I forget the fee.

Not late . Because management physically has the cash in hand. CC the cash is not in hand. nor is it the fees physically being in the account from the cc company. either. thats where my issue comes from.

The date the check/acceptable method of payment is RECEIVED is the 'record date' of payment.

HOW the HO gets the check to y'all is the HO's problem.

The DATE y'all receive payment is Y'ALL's problem.

ps. i pay 'my' HOA via bank bill-pay / arranged date for MAILING by bank is the 3rd / due date = 1st, late after 30 days / never a problem

... because they can ...

be happy that they pay

FOR REAL??? In WHAT alternative universe do you live on?

No! They paid you by the due date the fact it doesn't get posted as quickly as you would like is between you and the credit card company. If you wanted you could maybe change the due date for credit card payment but I think that would be petty. Over a year how much money is the association losing? Who pays the processing fees for credit card payments? Why do you have a 25 day grace period?

My point is that the payment is made when the check is RECEIVED, not when the check clears.

My point is that the payment is made when the charge is ACCEPTED, not when the charge clears/posts.

If the HOA charges a 'late fee' after a certain date, then payments tendered on or before that date are 'good-to-go.

If the HOA does not like credit cards then the HOA need not accept same as payment.

?better? eg.

electric co. will cut power after the 21st if bill not paid

visa tendered and accepted on the 21st

power stays on

D'OH

I think before people here make assumptions, you need to know how payments by credit card works and read their fine print. I have never taken one, but know fully how they work and the length of time it takes to process.

Unit owner pays 5.00 to use credit card...and as for the 25 day Grace time. 29 years condos formed...

When you buy anything with a credit card do you pick it up when the money shows up in the sellers checking account or when you give them the credit card?

What you're failing to realize is that when making a credit payment to the HOA through a third party provider. All your little scenarios you are making the payment directly to the company. Doesn't work the way you like to imagine.

Next back to the Super Bowl.

OK, if you say so.

No late fee. When the funds hit your bank account is not reverent.

So if the HOA set up the relationship with the third party why wouldn't it be the HOA's problem with how long it takes the HOA to get the money?

precisely

the HOAS's problem

NOT the payer's

ergo: no late fee

HOA DID N OT SET IT UP. MANAGEMENT DID

The OP's original dealt with ACH and Credit Cards.

ACH is set up by a party, like the management who uses the homeowners banking account information to withdrawn their assessments on a pre-determined date every month. Mine is the 5th (unless a Sunday or holiday) The software creates the file, I send to the bank's portal and funds are withdrawn on the date specified. Once the funds are transferred, the accounts are updated with the payment date of the funds transferred. Very simple process.

How credit cards are handled, well, they are all over the place. I know the timelines for me in different scenarios, but can't speak for others.

People think if they do bill pay that once the funds are taken out of their account, the HOA has their money. NOPE. You go online to pay a bill, fill out all the information and hit send. The money is withdrawn from your account, and file is sent to be printed and a check is printed and mailed to the payee. It can take up to ten days to reach its destination. Did you know you are still charged the amount even if the check is never cashed until you question it?

Here is how I process late fees. I will use the 15th being on a Friday. All accounts managed have due on the 1st and delinquent on the 16th.

1) If the 15th is on a Friday, then late fees are assessed on the 16 and statements are processed and mailed on the 18th.
2) If the 15th is on Saturday, then late fees are assessed on the 17th and statements processed and mailed on the 18th.
3) If the 15th is on Sunday, then late fees assessed on the 16th and statements processed and mailed on the 18th.

If a customer calls about the late fee I have the authority to waive the fee and have done so on numerous occasions.

Word to the wise, if payment is mailed on the payment never go to a judge and tell them I made my payment by the due date.

Did not mean capitals sorry everyone. I had to go into an appt. Did not verify..oopsie

Hi Richard,

Yes, I am linked to a third party website through a portal.

Amen!