All Topics / Help Needed! / Levies have not paid on time, huge interest rate and debt recovery fee charge

Viewing 18 posts - 1 through 18 (of 18 total)
  • Andrew2017
    Participant
    @andrew2017
    Join Date: 2017
    Post Count: 5

    i have recently received an email from debt recovery institution which said I have not paid strata levies for nearly 2 years, so it will charge me debt recovery fee and interest fee.

    Since We moved in this property, We never received the letter or email regarding the levies fee, I even forgot we have strata levies fees. I have been told the strata management kept posting letters to my old address, it’s reason why I have not got the letter. But I have questions for why they have record my mobile phone and email address, but did not send me a reminder to me via phone or email at first. Why they don’t call me once the first quarter payment has not been received.

    The strata management told me it’s lot owner’s responsibility to chase the levies if they have not received. But anyway, I have paid the full amount owned and interest and debt recovery fee once I received the email from debt recovery.

    I also asked the community executive can waive my interest and debt recovery fee and give me the credit to my next quarter levies bills. But they refused to do that after a couple of days later.

    I just seek for suggestion or help, is any way I can retain my rights to claim back the interest and debt recover cost as I think the strata management also is not competent and due diligence to give my lot owner’s reminder.

    Also I am not sure, the community executive has responsibility to notify the lot owner as well.

    Because I think the law is not fair, just say it’s owner’s responsibility to pursue the levies if did not receive.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    I don’t think you will have much luck.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Ethan TimorEthan Timor
    Participant
    @ethantimor
    Join Date: 2016
    Post Count: 282

    I don’t know the law but I would check with the tribunal in your state and/or a solicitor that specialises in such matters. If the law is on your side, they should be able to help. If it’s not on your side, then you could try to change the law.

    Ethan Timor | Aligned Finance Pty Ltd
    http://www.alignedfinance.com.au/
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    Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)

    Andrew2017
    Participant
    @andrew2017
    Join Date: 2017
    Post Count: 5

    Any possible to change the law? What is the process?

    Andrew2017
    Participant
    @andrew2017
    Join Date: 2017
    Post Count: 5

    Just think the law is not fair, not protect lot owner very much.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    THe law is clear. You contracted to pay a certain amount and you didn’t – you breached the contract. The other side incurred a loss due to your actions and they incurred additional costs which you should be liable for. They shouldn’t be liable for your actions.

    What is there to change?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Ethan TimorEthan Timor
    Participant
    @ethantimor
    Join Date: 2016
    Post Count: 282

    Any possible to change the law? What is the process?

    I really don’t know. People have changed laws in the past via many ways (from social/public demand to lobbying to protesting to pationing). It’s worth noting that even if the law changes, it probably won’t change in arrears, just for future cases but if you strongly feel it’s unjust and want to change it, maybe contact your local politicians and/or the governing bodies and see how and what can be done to change the law?

    THe law is clear. You contracted to pay a certain amount and you didn’t – you breached the contract. The other side incurred a loss due to your actions and they incurred additional costs which you should be liable for. They shouldn’t be liable for your actions.
    What is there to change?

    I think the OP is not disputing that he breached the contract. I think he’s saying that he believes the other party should have contacted him, at least once, via email and phone (which they had on file) instead of just using the mailing address and then giving the case to a debt collector which added their fees on top of the original debt and interest. Makes sense to me to have the body Corp use “all means possible” and not just the mailing address.

    Ethan Timor | Aligned Finance Pty Ltd
    http://www.alignedfinance.com.au/
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    Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)

    Profile photo of Luke TaylorLuke Taylor
    Participant
    @world-changer
    Join Date: 2005
    Post Count: 415

    It would have been the kind thing to do -Chase you on yr email address .
    It looks like the strata manager needs to put better systems in place if they don’t receive a reply initially.
    It was a huge over sight in their case but I think they are still within the law as it was you who provided the address they were sending to.
    Sorry you had this hard lesson but hoping the strata company learn from it too.

    Luke Taylor | Hope Property Investing
    http://hopepropertyinvesting.com
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    Property Support,Strategist and Buyers Agent

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    You would think they would have tied to contact you.

    I have a woman call me a few years ago who was actually bankrupted because she didn’t pay the strata fees for a couple of years. She was actually solvent but had some sort of dispute with the building management and refused to pay. She was served legal documents and ignored them. Next thing she knew she was bankrupt and her apartment was being sold. She quickly changed her mind and decided to pay the $9k or so owning. Except now the costs where up to around $50k because a trustee had been appointed. She was asking for help, but nothing could be done at that stage. She had to somehow pay out and come out of bankruptcy or lose her apartment.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,376

    Hi Andrew,

    A Financial Ombudsman might be worth contacting to put your case to them, then see what they recommend you do. Their role is to help with disputes…

    Simply Google those two words and choose the one that seems right for your situation,

    Benny

    • This reply was modified 3 years ago by Profile photo of Benny Benny.
    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    I dont think the financial ombudsman would have any jurisdiction over this.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,376

    Hmm, OK – could you share then just where a FOS limits are?

    I thought they would go into bat for a “David” versus any Goliath who was playing hardball!! Not so?

    Benny

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    Financial ombudsman look after companies offering financial advice and/or products – banks, financial planners etc. It is an external dispute resoluation service for members and their clients.

    strata is not a financial product and they would not be a member of FOS so they could not assist. What we have here is just a plain old civil dispute.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of vyaw2003vyaw2003
    Participant
    @vyaw2003
    Join Date: 2006
    Post Count: 185

    you go in to the real estate (BC) agent office and demand to speak to the owner. Take some food and a bottle of water, say you are not leaving until you negotiate with the agency owner.
    No doubt a junior admin (23 year old) is in charge of your half million $$ investment.

    Andrew2017
    Participant
    @andrew2017
    Join Date: 2017
    Post Count: 5

    Thank you for all viewer’s comments.
    I have contacted the fair trading (NSW), they said it’s my duty to update address or contact strata management to get levies based on the law. There is not too much things can change or done for me.

    This poster can reminder others if they have issues, just pay the amount own to strata.

    If you are looking for waiving the interest and debt recovery, better to lobbying all executive committee before you ask for waive.

    My mistake for case is I did not lobby all executive member, they have rights to vote in the meeting in terms of whether waive extra cost or not. So giving this example, I advise people to understand how games work, before take any actions.

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,376

    Hi Andrew,

    So giving this example, I advise people to understand how games work, before take any actions.

    That applies to so many things in life, eh?

    Thanks you for sharing your story, Andrew – I too hope it helps someone else to stay ahead of the game !!

    Benny

    Profile photo of blackhotelblackhotel
    Participant
    @blackhotel
    Join Date: 2010
    Post Count: 139

    Who forgets to pay 2 years of levies – porky’s! Amnesia is not a good defence.

    Andrew2017
    Participant
    @andrew2017
    Join Date: 2017
    Post Count: 5

    Yes, you are right, Considering We are immigrants into Australia with limited knowledge about how the whole game works. It’s a expensive lesson for us and remind us to learn things everyday, especially for our immigrants.

Viewing 18 posts - 1 through 18 (of 18 total)

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