#13359
Jimmy-T
Keymaster

    Let's not be coy about this – fees for letters and late payments are, to some extent, de facto fines (except ECs can't impose fines).

    The unwritten decision not to collect debts may be OK but that doesn't mean those debts aren't accruing interest.  The two relevant sections of the Act seem to allow some leeway but not much.

     

    79   Interest and discounts on contributions

    (1)  Any contribution levied by an owners corporation becomes due and payable to the owners corporation in accordance with the decision of the owners corporation to make the levy.

    (2)  A contribution, if not paid at the end of one month after it becomes due and payable, bears until paid simple interest at an annual rate of 10 per cent or, if the regulations provide for another rate, that other rate.

    (3)  However, an owners corporation may by special resolution determine (either generally or in a particular case) that a contribution is to bear no interest.

    (4)  An owners corporation may, by special resolution, determine (either generally or in a particular case) that a person may pay 10 per cent less of a contribution levied if the person pays the contribution before the date on which it becomes due and payable.

    80   How does an owners corporation recover unpaid contributions and interest?

    (1)  An owners corporation may recover as a debt a contribution not paid at the end of one month after it becomes due and payable, together with any interest payable and the expenses of the owners corporation incurred in recovering those amounts.

    (2)  Interest paid or recovered forms part of the fund to which the relevant contribution belongs.

    I may be wrong but it reads to me like you can collectively decide not to pursue debts (or not decide to collect them) but if you want to waive interest payments it has to be by special resolution.

    The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.