A Paddocks Sectional Title Lifestyle Blog
by Jennifer Paddock
Hello Thinking Inside the Boxers!
An attorney contacted me recently telling me about a client of his who had been charged interest on arrear levies at a rate of 40.9% per month.
Isn’t that outrageous?!
I decided to create a video tutorial for Paddocks Club to take our members through the law relating to maximum interest rates applicable to arrear levies.
I’ve put the video on YouTube to give my lovely blog followers this important information too.
Click on the image below to watch the video:
Here’s a cheat sheet for those of you who don’t want to watch the video:
1) If the trustees set the rate of interest – the Prescribed Rate of Interest Act applies (the current maximum rate is 15.5% per annum).
2) If the owners by agreement at the AGM or an SGM set the interest rate – the Prescribed Rate of Interest Act does NOT apply and the rate of interest is simply agreed to by the owners.
How much interest is charged on arrears by your body corporate? Comment below.