Fees, fees, fees…. they seem never ending and there seem to be more each and every time a service is rendered or a product is purchased. Fees are also applied on a punitive basis when an expense is incurred but the cost has not been paid by the due date.
The majority of our homeowners make timely payments which allows the VCA to invest funds and earn interest to pay for our common areas, ongoing operations and to set aside monies for reserves. Unfortunately, on a monthly basis the VCA must add late fees and finance charges to homeowner accounts that have an unpaid balance. Late payments place an unfair burden on neighbors who pay on time and can affect the community’s financial stability.
The VCA adds late finance charges to homeowner accounts when there is a balance due because payment was not made on time. When this occurs, there is a loss of interest earnings on those funds and the finance charge is added to offset the loss of earnings. That finance charge is assessed at a rate in accordance with Florida law.
Late fees are also assessed as a collection process begins when payments are not remitted on time. That process includes notices and statements to homeowners advising of the past due balance. When it happens, the late fee is a charge intended to offset the administrative costs of additional collection procedures. Ultimately, accounts may be referred to legal counsel for collections and all direct legal expenses are also added to the account of the homeowner.
The VCA does receive requests for waiver of such charges and late fees and generally these requests are denied. That is not to say that every request is denied! Generally an assessment is based on an analysis of payment history over the previous 2–3-year period and the merits of the situation. However, holding our residents accountable when they fail to pay on time requires a firm, consistent, and proactive approach that balances professional courtesy with the protection of our community’s cash flow.
How can fees and finance charges be avoided?
• Stay aware of your account activity! For those on “auto pay”, there should not be an issue. Payments will be collected through an ACH charge to your account on file. Remember if you change banks, close an account, or take some other action to that bank account, you will need to reauthorize your “auto pay.” If you don’t update as changes are made, your collection will be denied by your bank and you will be assessed a “returned auto debit” fee along with possibly a “late fee” and a finance charge.
• When making a payment by your bank’s bill pay service be sure to read your bank’s bill pay disclosures. Payments are to be received by the VCA on the 1st of the month of each quarter. Dating them on the 30th or 31st and postmarking them on the last day of the month does not constitute timely receipt. Payments are received at a lock box facility operated by First Citizens Bank in Phoenix, Arizona. Generally, the Bank’s lockbox processing unit will process payments within a business day of receipt. The VCA considers the date of receipt as the day it is processed by the lock box facility.
What else can cause my payment to be late?
• Payments submitted without an account number listed in the memo section of the check may be subject to processing delays.
• Checks made payable to the wrong entity such as the Verandah Club instead of the Verandah Community Association, or checks filled out with discrepancies, will also be subject to delays.
• Ever since the pandemic, there has been an increased amount of time for USPS first class delivery. One bill pay site recently reviewed states: “We suggest you schedule your payment at least 5 business days before the bill is due.” As a matter of practice, we believe such advice is prudent to avoid late fees and finance charges. Some, not all banks, continue with their bill payment guarantee. They “guarantee” that the payment will be “delivered by the date selected.” Those guarantees are the bank’s guarantee and not those of the USPS. Should a payment arrive late and a late fee and finance charge be assessed, it is the responsibility of the homeowner to pay the charges to the VCA and recover such amounts from their bank which provides such guarantee.
• If the homeowner doesn’t pay the late fee and finance charge after the late payment, the charges remain on their account. When the next quarter arrives, and the homeowner pays the regular quarterly amount, it nonetheless becomes an incomplete payment because the late fee and finance charge from the previous quarter(s) have not been satisfied. This results in the addition of another late fee and finance charge. This cycle continues to compound until the homeowner has addressed their account. You may be surprised to learn that there are a number of homeowners that have $100+ balances past due simply because they have not addressed the fees which have been levied to their respective accounts.
• Check your account balance online. You have a specific account number that can be accessed online. If you do not have access and are uncertain how to obtain access, please call the VCA office and they can assist you. Don’t let late fees and finance charges remain on your account and compound future charges.
