Question: Are the costs involved in issuing levy recovery letters reasonable?
I don’t believe the recovery costs for my overdue levies are reasonable.
Under the body corporate manager’s (BCM) “internal debt recovery” procedures, I was charged a debt recovery fee of $50 for being 15 days overdue with my levy payments. The BCM sent a “reminder contribution notice”. I paid my levies and included the 2.5% penalty for my late payment, but not the debt recovery costs, as I did not believe it should have been charged according to the debt management item in our AGM.
The item states that recovery proceedings can be commenced via a mercantile agency after 54 days.
My latest contributions notice included an additional $85 for arrears. I did not receive a first reminder letter regarding this additional fee. When I questioned these amounts, the BCM stated: “These costs are directly related to the issuance of the letters and are added to the outstanding levies of the lot owner”.
Are the costs involved in issuing these two letters (one of which I never received) considered reasonable?
Answer: The fee could have been avoided if you paid on time or contacted your manager about your situation.
Yes, the costs of issuing letters would be considered reasonable. They are a fee applied to remind you your levy is due, and they could have been avoided had you paid on time or contacted your manager if you were experiencing difficulty paying.
It is also not necessarily the body corporate’s fault if you didn’t receive one of the letters. Letters can only be sent to your registered addresses. If they have made a mistake inputting your address, the body corporate may be at fault, but otherwise, they can’t guarantee the post goes through or how you set up your email.
In addition, it sounds like debt management procedures have been agreed by owners at the AGM. This is a good thing. It makes the collection process clear for all owners. To check that the costs applied against your lot are correct, obtain a copy of your statement, which should list each cost applied. You can cross reference the costs against the items in the motion to ensure they correspond. If they don’t, ask your body corporate company why.
William Marquand Tower Body Corporate E: willmarquand@towerbodycorporate.com.au P: 07 5609 4924
This post appears in the September 2024 edition of The QLD Strata Magazine.