How are the fees and charges regulated in the recovery of arrear levies?
I received a summons for the payment of R17,000 to my body corporate. In October 2018 my insurance paid R5,150 for my arrear levies. My bill shows I was charged interest of R5,247, legal costs of R4,343 and assessment costs of R1,345. When I contended that the collection costs cannot be more than double the capital amount outstanding [therule], I was told this applies to agreements under the National Credit Act , and only the interest rate provision is applicable to my bill.
The rules, powers and functions of a body corporate as well as the liability to pay levies are set out in the Sectional Title Schemes Management Act. The body corporate may appoint debt collectors to collect on outstanding levies. In terms of the NCA the prescribed interest rate is 2% a month, which accumulates to 24% a year, which can be charged on default payments within an incidental credit agreement.
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