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We inadvertently sent in two checks for our October mtnce. The coop cashed the over-payment entitling it "unapplied prepaid mtnce" The month it was intended for was clearly written in the 'memo' line.
Can a coop cash two checks that were written for the same month or should they have caught this mistake?
In addition, there was an arrears amount in dispute (for a repair that is 100% the coops responsibility) and they applied the over-payment to this arrears portion despite the fact that the check was clearly written out to " monthly mtnce only" in the memo line. and also the payment has been split in half btw actual mtnce and the repair fee in dispute.
As an owner of a management company, many of our clients have their maintenance go directly to a lockbox. In this scenario, each Shareholder sends their maintenance to the address of the maintenance envelope and once it is deposited by the lockbox they credit your account and then transmit the records and the payments into the management software the next day. The people on the other end of your transaction are not looking at each account to see if the maintenance was already received (most companies manage thousands of units and that would be impractical).
Being that you had an open balance, whether or not it was being contested is irrelevant in this scenario. The computer will automatically apply the open balance and then credit the excess.
I can't fault the management company in this scenario as the onus is on the Shareholder to send in the correct amount of maintenance, or in this case, the correct number of checks.
Luisan,
To me it is clear that you are a shareholder. I am not a lawyer but I believe when an amount in dispute once has to be very careful not to pay a penny over the monthly maintenance. Yes it was a mistake to pay twice the same month because of the abuse shareholders suffer; but does not mean you have to accept it to be part of the dispute amount (I wonder if they will use it as you admitting that you have to pay the disputed amount). I would write a certify letter letting them know that you are still disputing the amount. Just make sure from now on you write the date to apply payment to (month and year). Keep sending payment every month and just put to be apply to the correct month (one month in advance to compensate for the 2 payments). If you ever have to go to court you bring all the checks as proof of payments; the judge can read and if housing court does not listen you can always go to appellate court to appeal it. You can call the Bronx Defenders (googgle the address and phone). They might give you legal advice or tell you where to go.
Also be aware that coop abuse is an epidemic. Check out COOPABUSE.COM to read about horrible stories and what we, Cooperative Community Organization, is doing to pass laws to protect our coop homes. At this time we have no right at all. We can be evicted from our home just for a few hundred dollars; specially if one has NO MORTGAGE. We are like third class citizens.
This week we have meetings with two strong politicians and we are to discuss coop issues and how to implement laws to protect our home. I, along with other people, will be representing the Bronx at this meeting. It is important that we fight together against this abuse. Perhaps an issue should be for shareholders to get list of all repairs that the coop has to pay so you don't have to be fight for it. It is sad that shareholders have to spend so much time and money fighting this that should be very clear. Also, it seems that target people to be abuse are shareholders with NO MORTGAGE; it is easier for the coop to take away your home at the housing court level. Shareholders are loosing their homes in housing court and do not have any protection under bankruptcy court.
Email me ROSA.NAZAR@GMAIL.COM to let me what borough you are in (or part of NYS). Today we are fighting together and only VOTING for politicians willing to fight to protect our coop homes. The formation of COOP was a fraud bigger than ENRON and needs to be investigated by the attorney general. Also register in COOPABUSE.COM to get info.
Forest Hills, Queens.
77 units, gorgeous art deco pre war that has been so terribly neglected for so long due to sponsor control!!!
The sponsors in our co op REFUSE to sell, and keep renting their units. They still own 50%!!! We need the AG's office and the politicians to pass a law that forces them to sell.
They keep our co op as a rental with strangers moving in and out and causing damages. I serve on the board, and my shareholders who elect me, feel they bought into a co op, not a rental. When we ask them at an annual or I ask at a board meeting, when they will sell, they say NEVER, and you can't force me!!
Please help!!!
hello,
unfortunately writing something in the memo section of your check doesn't offer you any sort of protection. as others have said, if you want to protest the arrears, handle that officially in writing with your board.
hello,
unfortunately writing something in the memo section of your check doesn't offer you any sort of protection. as others have said, if you want to protest the arrears, handle that officially in writing with your board.
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Hi Luisan,
I am taking a leap here and assuming that you are a shareowner. The reason that is it a leap for me is that your e-mail sounds like it is written by a renter.
You sent two checks. It was your error. If you think there is sufficient staff to review every payment (even if it goes directly to the management company instead of a bank lockbox like mine does); you are mistaken. Their focus is on people who don’t pay. And no – they don’t have the staff to read each memo line. Depending on how your payment is processed – it may have been electronically converted too which means that nothing written on the memo line is transmitted to them at all. In short – you may have been writing just to yourself.
In my co-op we have people to pay in advance all of the time for reasons that suit them. We don’t ask about it – we are grateful in that this will usually cover for someone that is late.
If you think about it – you sent funds from your personal account to a company of which you own a part – the funds aren’t stolen – you still own a portion of them through your share interest.
I would suggest that you call it your error and drop the complaining. If you have a problem with one of the charges, bring it up with the Board.
Good luck
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