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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 110493
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Management company every month charging me late fee, though

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Management company every month charging me late fee, though I pay my monthly dues in time and in full. They explain it that they apply my monthly payment to cover previous debt and so my current payment is not sufficient. Accountant started doing this when I didn't agree to pay extra amount for water they wanted. I didn't agree after that to pay for lawyer they hired to collect mentioned above extra amount for water (they say that was "fine").
Besides, the lawyer they hired demand to make payments long time before due date including those payments in so called debt.
Is it normal business practice?
Thank you for your question. I look forward to working with you to provide you the information you are seeking.

I am sorry to say that if there is some past due balance that has not been paid, even if it is part of a dispute, then any future payments you make are first applied to the past due balance and if they are not sufficient to cover the past due balance and new payment, then your new balance is short and becomes delinquent.

If you disputed a particular fee with them, then you had to go to court and fight over that fee to get a court order declaring that fee improper or reducing that fee. To simply refuse or not agree to pay the fee, even though they said it was "fine" does not mean you do not owe it. They said it was "fine" because they knew they would continue to charge you for it and it would accrue fees and penalties.

At this point you need to either take them to court for a declaratory judgment disputing the fee or you need to make some deal to pay it up and get current to avoid future late charges and penalties.

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Customer: replied 3 years ago.

What about this part:

Why do I have to pay for lawyer they hired ? Do I have to pay for pizza they eaten calculating my "debt"?

Can that collect a payment which is not due yet?

I have paid with coupons stated what that payment was for certain month and what that payment consist of (not counting check itself stating "paid for...". Are you saying that I can not pay my money for what I want?

I have paid my monthly payment money in full and in time. Late fee is for the certain payment in case if it was late. Business law is different than common sense?

I could understand interest charge on balance left unpaid, but late fee??????

Thank you for your response.

If they were trying to collect a debt you owe, then they can charge you for the attorney's fees expended to collect that debt. In fact, if you read your contract with them, it would state that in the contract itself.

You have a payment you have been objecting to and refused to pay, as you said in your original statement, that is what has caused you to have late payments even though you are making the new payments on time, which is what I explained above and the management company has a right to apply your new payments to the past due amount FIRST, regardless of what you want it to go towards.

This is why you have to go to court for a declaratory judgment and to fight that old payment you objected to. You cannot just decide not to pay it and think it would go away I am afraid, you have to take the management company to court to resolve that.
Customer: replied 3 years ago.

You didn't answer: can they demand payment which IS NOT due yet ?

They cannot demand a payment that is not yet due, but you stated above that the delinquency they were demanding was from a "previous debt."
Customer: replied 3 years ago.

No did not state so. They added current charges to what the would like to collect

Thanks, XXXXX XXXXX your point.

Thank you. XXXXX misunderstood, but you said above, "They explain it that they apply my monthly payment to cover previous debt and so my current payment is not sufficient." If that was a correct statement by you, then the explanation I provided is correct. However, if there is some payment that is not yet due they cannot charge you for not paying something that is not yet due.
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