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Subject: Interest in New Jersey
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Author Messages
SamE2
(New Jersey)

Posts:162


04/15/2019 10:26 AM  
Does anyone know what the maximum interest a HOA can charge an owner for past due assessment? Docs say what the law allows.
MelissaP1
(Alabama)

Posts:8599


04/15/2019 12:56 PM  
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:197


04/15/2019 1:17 PM  
Our HOA charges 18% interest
SamE2
(New Jersey)

Posts:162


04/15/2019 1:33 PM  
Thanks CjC.
JohnC46
(South Carolina)

Posts:8729


04/15/2019 1:54 PM  
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
(Virginia)

Posts:16479


04/15/2019 4:10 PM  
A simple internet search provided the answer.

See:

https://davidrichlaw.com/what-rate-of-interest-can-my-business-lawfully-charge-in-new-jersey/
GeorgeS21
(Florida)

Posts:1285


04/15/2019 4:27 PM  
Sam,

See Tim’s reference ...

You did a thorough search prior to posting, right?
KerryL1
(California)

Posts:6632


04/15/2019 4:51 PM  
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.
SamE2
(New Jersey)

Posts:162


04/15/2019 4:53 PM  
Posted By GeorgeS21 on 04/15/2019 4:27 PM
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


Posts:0


04/15/2019 4:57 PM  
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.
GeorgeS21
(Florida)

Posts:1285


04/15/2019 5:31 PM  
Gee, Kerry ... I’ll try to be more consistent.
KerryL1
(California)

Posts:6632


04/15/2019 5:31 PM  
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.
RoyalP


Posts:0


04/16/2019 6:37 AM  
https://davidrichlaw.com/what-rate-of-interest-can-my-business-lawfully-charge-in-new-jersey/
SamE2
(New Jersey)

Posts:162


04/16/2019 1:05 PM  
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/





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


Posts:0


04/16/2019 1:10 PM  
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.
SamE2
(New Jersey)

Posts:162


04/16/2019 1:21 PM  
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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