dues

Depends.

Forget the electronic part.....

What do your association docs say about charging interest?
What do your association docs say about when dues are due?

Glen,

Usually it's at the discretion of the BOD regarding when the assessments must be paid -- monthly, quarterly or yearly. Frankly I think changing from monthly to yearly could be a really big change for some people. IMO, this should have been discussed with the membership -- perhaps even voted on -- before initiating the change.

Sending late notices and adding interest fees on delinquent assessments is proper as is placing liens if the delinquency continues. However, that fact that your assessment period has changed drastically may have imposed a hardship on some of the members.

I also think that allowing members to pay monthly if they pay by electronic transfer equates to giving partial treatment to those members. Not every one likes to use electronic transfers, for whatever reason, and those people should not be penalized by having to pay a yearly assessment for not using it. I won't say this procedure is illegal but it may be a bit unethical. IMO, your BOD needs to rethink this decision.

Are you sure this is not a "service charge" to pay for tracking all the paperwork?

We can pay in total or in payments. But if you choose payments (choice of 2 or 3 payment schedule) there is a $5 service fee. But it ALL must be paid by Aug. 15 or then the interest fee kicks in.

Chris,

You've missed the point. It may be a hardship to pay the yearly fee and perhaps they don't want to pay electronically. Remember, monthly fees has been the procedure for 17 years. Some members may be on fixed incomes and unable to come up with the yearly fee. Some seniors may not be able to understand the electronic payment process.

BTW, if the electronic payments are such a time saver I wonder if the mgmt co has reduced their monthly fee!!!

I agree with Roger and others that this BOD could have handled the matter better.

That being said I don't think I missed the point in that the residents still have the OPTION to pay monthly they just can't choose to do it by writing a check. We, along with most HOAs won't accept cash payments even though some people prefer to deal only in cash. How is that different?

At the risk of getting attacked those seniors who may not "understand" the electronic payment process will need to do so pretty quickly as the only option to get a social security check will be to do so electronically in the near future. Most of us that work for large companies don't have a choice in how we get paid, I haven't recieved a paper check in years as payroll is required to be direct deposited.