Topic: How do interest charges work?

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26/02/2016 at 6:27 am #10335 Reply | Quote
jpsblue75
Does anyone know how the interest that is charged works? My strata manager charges interest after just 20 days or so after the levy notice is sent out and i have since found a interesting piece of information that interest can only be charged after 30 days, the details are;

There is a small safety net for owners is that Interest can not be charged within the first 30 days after the levy is due.

http://www.stratatalk.net/uncategorized/levy-contributions-by-nathan-clarke/
Nathan Clarke, Newcastle NSW Licensed Strata Managing Agent.

Has anyone had heard of this? Is this correct?
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26/02/2016 at 5:35 pm #24555 Reply
DaveB
Flatchatter
Mostly correct. Though the date the notice is sent or received has no bearing on when interest becomes due, in fact there is no requirement to send a notice out. It is good practice however for this to be done in advance of the due date to remind owners of their obligation to pay. If the levies are not paid within thirty days of the due date, then interest is chargeable at the rate of 10% per annum, calculated from the due date till date of payment.

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Reply To: How do interest charges work?

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