SamE2 (New Jersey)
Posts: 310
Posts: 310
Posted:
Does anyone know what the maximum interest a HOA can charge an owner for past due assessment? Docs say what the law allows.
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Interest in New Jersey
Started by SamE2 • 15 replies • 759 views
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MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
It varies state to state I believe. Rough estimate is whatever your credit card company can charge. Has something to do with prime rate. Typically 5 -6 % interest.
Former HOA President
CjC
Posts: 210
Posts: 210
Posted:
Our HOA charges 18% interest
SamE2 (New Jersey)
Posts: 310
Posts: 310
Posted:
Thanks CjC.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Typically an HOA can go as high as the state allows which in most cases is 18% a year. They also can add "service" charges and if turned over to an attorney, the attorney can add charges. I know of one situation where the person owed 3 years of due ($1,800) but with interest, service charges, and legal costs, they owed over $5,000.
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
A simple internet search provided the answer.
See:
https://davidrichlaw.com/what-rate-of-interest-can-my-business-lawfully-charge-in-new-jersey/
See:
https://davidrichlaw.com/what-rate-of-interest-can-my-business-lawfully-charge-in-new-jersey/
GeorgeS21 (Florida)
Posts: 3,808
Posts: 3,808
Posted:
Sam,
See Tim’s reference ...
You did a thorough search prior to posting, right?
See Tim’s reference ...
You did a thorough search prior to posting, right?
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
You know, George? You so often seem like a very kind & warm person. Other times you are hypercritical & judgmental about tiny things that often aren't the subject of the O.P.
There is no requirement here to do a search before folks post a question. Some don't know how; some have time issues.
Actually help might be to suggest to Sam how to do the search.
There is no requirement here to do a search before folks post a question. Some don't know how; some have time issues.
Actually help might be to suggest to Sam how to do the search.
SamE2 (New Jersey)
Posts: 310
Posts: 310
Posted:
Quote:
Posted By GeorgeS21 on 04/15/2019 4:27 PM
Sam,
See Tim’s reference ...
You did a thorough search prior to posting, right?
Sam,
See Tim’s reference ...
You did a thorough search prior to posting, right?
I did George, thanks for asking. I also read the link but I can't tell if it applies to HOAs that have units that are past due. It may but I'm not sure from reading it. It seems it is more focused on businesses that are selling products on credit and my HOA is not selling any products we are just dealing with trying to collect money that is owed to us.
RichardP13 (California)
Posts: 3,868
Posts: 3,868
Posted:
This from a HOA in New Jersey.
Section 9. Interest and Counsel Fees. The Board, at its option, shall have the right in connection with the collection of this, or any other charge, to impose a late fee, or an interest charge at the legal maximum rateif such payment is made after a certain date stated in such notice. In the event that the Board shall effectuate collection of said charges by resort to counsel, the Board may add to the aforesaid charge or charges a sum or sums of twenty (20%) per cent of the gross amount due as counsel fees, in addition to such costs allowable by law.
Section 9. Interest and Counsel Fees. The Board, at its option, shall have the right in connection with the collection of this, or any other charge, to impose a late fee, or an interest charge at the legal maximum rateif such payment is made after a certain date stated in such notice. In the event that the Board shall effectuate collection of said charges by resort to counsel, the Board may add to the aforesaid charge or charges a sum or sums of twenty (20%) per cent of the gross amount due as counsel fees, in addition to such costs allowable by law.
GeorgeS21 (Florida)
Posts: 3,808
Posts: 3,808
Posted:
Gee, Kerry ... I’ll try to be more consistent.
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
You know, George? You so often seem like a very kind & warm person. Other times you are hypercritical & judgmental about tiny things that often aren't the subject of the O.P.
There is no requirement here to do a search before folks post a question. Some don't know how; some have time issues.
Actually help might be to suggest to Sam how to do the search.
There is no requirement here to do a search before folks post a question. Some don't know how; some have time issues.
Actually help might be to suggest to Sam how to do the search.
RoyalP
Posts: 1,104
Posts: 1,104
Posted:
https://davidrichlaw.com/what-rate-of-interest-can-my-business-lawfully-charge-in-new-jersey/
SamE2 (New Jersey)
Posts: 310
Posts: 310
Posted:
Quote:
Posted By RoyalP on 04/16/2019 6:37 AM
https://davidrichlaw.com/what-rate-of-interest-can-my-business-lawfully-charge-in-new-jersey/
https://davidrichlaw.com/what-rate-of-interest-can-my-business-lawfully-charge-in-new-jersey/
I read that and don't know if it answers my question. I'm asking what interest rate can I charge someone past due on his HOA laws. It says loans have to be between 6 - 16 percent. Is someone being past due considered a loan? It also says there are many exceptions but does not list them. Is a past due account an exception? Thanks for the post.
RichardP13 (California)
Posts: 3,868
Posts: 3,868
Posted:
N.J.S.A. 54:4-67 states that delinquency in real estate taxes can accrue interest at up to 8% per annum for the first $1,500 that is delinquent and 18% per annum for any amount in excess of $1,500. Therefore, if an association has language in its bylaws similar to that set forth above, it may assess interest plus late fees (or as an alternative to late fees) at the maximum rates provide for in N.J.S.A. 54:4-67.
You want want to get a lawyer involved.
You want want to get a lawyer involved.
SamE2 (New Jersey)
Posts: 310
Posts: 310
Posted:
Thanks Richard that helps. I will call attorney if we can't work something out but right now we are offering a settlement at less than 6 percent so we should be good.
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