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does anyone know if this is illegal?
Our monthly bills usually list late fees as a separate line-item: 'late
charge'.
If this portion of the bill remains unpaid into a second or third
month it generally continues to be listed separately from the monthly
"maintenance" portion.
Recently, there was a bill where a late fee (in dispute) appeared
initially on the first month as a "late charge" but then appeared on
the second month listed as "Maintenance." This seems irregular and
possibly inappropriate. Can you roll a late fee like this ?
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how about the statement below? (from an article) and what would the current interest rate be?
Care must be given, however, to ensure that the proprietary lease authorizes those particular charges, otherwise the co-op opens itself up to counter-claims by the shareholder and for his or her legal fees, if the shareholder is successful.
The most common abuse by co-ops is the inclusion of cumulative late charges, such as $25 the first month, $50 the second month, $75 the third month and so on.
This type of late charge structure violates not only most proprietary leases (which provide that late fees can only be charged equal to the maximum legal rate of interest), but also violates usury laws. Since the purpose of the rent demand, or "Notice to Cure," is to afford the shareholder the opportunity to determine the claim’s accuracy, only those charges which are legal and permissible should be included in the notice.
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