This is really a legal question. I need to know what the maximum late fees a vendor can charge for due payment

Question

This is really a legal question. I need to know what the maximum late fees a vendor can charge for due payment

I am late on HOA fees and they are trying to charge astronomical fees.

Answer 1

35% and higher

Answer 2

Clarify HOA. My guess is HomeOwners' Association, but may mean anything.

Generally late fees are controlled by the contract, and some states have statutory limits. I suspect that most companies know enough not to violate statutes, and only rarely do they exceed their contract limits.

Even with the contract or statutory limits, the penalties usually include making you responsible for "legal fees" if they have to put the bill into "collection". With a Home Owners Association, the dues are probably around $100 per month, and if you get 45 days behind, they hand it to the attorneys, and you instantly go from owing $200 plus a $10 late fee to $210 plus $500 in legal fees and they'll foreclose on you if you don't pay it.

You just have to read the document that creates the obligation to see what they're entitled to do if you don't pay on time. My guess is it probably says they can stick it to you. Since you probably didn't plan to be late when you signed it, you might not have heard that part.

Answer 3

Yes, any landlord can charge a late fee if the rent is late (and if it's in your lease). Did you ask him/her to wave the see due to FLMA? If not, try doing so.