• Creator
    Topic
  • #8415

    Hello

    I have inadvertently fallen foul of the early payment discount rules in place for my strata levy (Sydney inner city).

    My payment for levies due November 2011 was late by 1 day (due to delay in transfer between banks, my debit against my account occurred early).

    I am obviously rather obtuse because I didnt notice the fine print of levies in arrears (around 10% of the levy fee) plus interest on my next invoice in Feb (& I paid the usual amount on time). By May this was around $115 in arrears (because having levies in arrears apparently automatically cancelled my right to the early payment discount). It was only in July of this year when I was sent a separate reminder notice (the first)  by this stage for nearly $200 that I realised what was going on.

    I paid versus this notice promptly only to also be slugged for $180 odd dollars on top of my usual quaertery levy for August (again because according to the rules as interpreted by the strata management agent I wasnt entitled to a discount).

    My request for an explanation resulted in the calculations rather than the applicable rules. My question is – how do I find out exactly what my rights are in this matter ? I have paid almost $400 extra (versus around $9 interest) due to not being entitled to early payment before the due date for levies across the period Feb-Aug 2012.

    I feel this is a little unfair given this was not brought clearly to my notice as well as what appears to be a punitive interpretation of rules (to which I would like to have access). The annoying thing is that had this matter been brought to my attention clearly & promptly this could have been largely avoided.

    Appreciate any advise.

Viewing 2 replies - 1 through 2 (of 2 total)
  • Author
    Replies
  • #16598
    scotlandx
    Strataguru

      You didn’t pay the levies prior to the due date, so the 10% discount didn’t apply. It is not up to the owners corporation or strata manager to alert you, how you pay the levies is up to you. The calculation basis on the later fees may be arguable, but it isn’t a matter of you being slugged with excessive penalties, you have just missed out on the discount. That is the $400 extra to which you are referring.

      #16608
      Whale
      Flatchatter

        Having just reconciled levy payments made by my Proprietors 7 calendar days in advance in order to avail themselves of our Plan’s 10% discount, I’m totally in agreement with scotlandx, although as we’re self-managed I’m in a better position to “manually” show a little latitude (1 day) than would a Strata Manager’s automated system covering many payments from many Plans.

        Assuming you’re in NSW, the detail of your Plan’s early payment discount would need to be provided in a Special By-Law, and the detail of all Fees for late payments, and how they’re implemented, would be outlined in the Agency Agreement that your Plan has with its Strata Manager. You can obtain copies of both of these from your Strata Manager, and thereby ascertain your “rights” with regard to both.

      Viewing 2 replies - 1 through 2 (of 2 total)
      • You must be logged in to reply to this topic.