Problems with direct debit HOA dues?

[kyc]

Am I the only one having problems with direct debit of HOA dues? I've been doing this with no problems for almost 10 years now, but all of a sudden I got a letter from the HOA indicating that my account is past due by two months. Looking at my checking account transactions I see that the amount for January was debited; the amount for February was supposed to be debited yesterday so I guess it should post on Monday. Since the debit is to L&N, it would seem somewhere between L&N and the HOA accounting system my payments have been missed.

I'm calling the office on Monday when they're open to sort all this out, but I was just curious to see if this was widespread or perhaps I was just unlucky.

--Kin

[Scott]

Got the same letter. My account has been debited for the past three months (December - February), so I think they must have an accounting problem. Plan to call them in the morning.

[Mr Brian]

Come to think of it, I got a letter from them as well and I mail in a check. I'd better look in to that...

B.

[glickri]

I received same letter on Sat that my HOA dues are 2 months past due. Checked my bank account and the automatic withdrawal from my account took place on time for both Dec and Jan.

[RandyW]

L&N sent out a letter a few months back stating that the account numbers were changing for all HOA accounts, I believe it was an additional 4 digits that were added to the account numbers. At any rate, whatever the specifics, if you did not update the account numbers in your automatic withdrawal setup then the funds would not get to the correct account.

It sounds like some of you may have missed that letter. I don’t recall seeing anything on it in the Cascades Current, or on the website, though.

But that’s what’s happened. Your account number has changed and needs to be corrected.

[Scott]

Just got off the phone with L&N and they advised that there was an error in their accounting department and that I should disregard the letter. Hopefully, nothing further will show up in the mail.

[kyc]

Scott:
Thanks for the update. I tried calling in twice this morning but got the hold music and didn't have the time to perservere. They're probably inundated with calls regarding this. It looks like the error is fairly widespread, if so they need to call or send out letters to everyone affected to calm things down. As I understand it, one of the consequences of not paying dues it the HOA can put a lien on the home, ultimately selling it in foreclosure to recover past due fees (in fact, some HOAs have foreclosed on certain bank owned prior foreclosures due to missed dues); therefore I take any notification of late HOA dues very seriously.

RandyW:
Now that you mention it, I recall seeing a letter mentioning something along those lines. However, I don't remember anything related to direct debit was mentioned there.
Besides, I don't think it should be our responsibility to update the account numbers, they should be able to do this automatically on their end. The banks wouldn't be involved here since all they deal with are bank account and routing numbers. The bank would not be providing any additional information to L&N such as HOA account number, so it is bookkeeping on the L&N end that should be responsible for crediting my payments. It certainly seems inefficient to send a letter with new account number information and then require me to call them (L&N) subsequently to update their internal systems to the new account numbers.

[jlchellman]

I also called while driving to work this morning. Spoke to someone named Jesse (?) who told me that ALL of the late notices that were mailed went out in error. He advised me to simply discard and forget. Done!

[RandyW]

RandyW:
Now that you mention it, I recall seeing a letter mentioning something along those lines. However, I don't remember anything related to direct debit was mentioned there.
Besides, I don't think it should be our responsibility to update the account numbers, they should be able to do this automatically on their end. The banks wouldn't be involved here since all they deal with are bank account and routing numbers. The bank would not be providing any additional information to L&N such as HOA account number, so it is bookkeeping on the L&N end that should be responsible for crediting my payments. It certainly seems inefficient to send a letter with new account number information and then require me to call them (L&N) subsequently to update their internal systems to the new account numbers.[/quote]

Depends on which way your debit is set up. Mine is via BoA Automatic bill Pay, not with the L&N debit system. So I did have to go in and change the account number in my BoA payment profile to the new account number.

But from the additional posts, looks like it was an error on the L&N system, or something. I suspect there were a few others that didn't make the changes.

[Miss J]

Has anyone had the quarterly payment amount drafted from their bank for April when it should have been the monthly amount? The rep at Legum & Norman says it was a "software glitch" (user error?) and that they are willing to refund the extra funds but refuse to draft the correct amounts for May and June. They told me they will not draft for the monthly amounts for just a handful of homeowners who want this done correctly and aren't willing to let them keep the money for the quarter and tell me that I will be required to mail in payments for the remaining two months of the quarter.

Nothing posted on HOA website to indicate problems. Lovely.

"Assessment Coupon Information
Summary:
Effective April 1, 2010, Legum & Norman will begin using Community Association Banc (CAB) to process condominium and homeowner association assessments. A division of Mutual Bank of Omaha, Community Association Banc specializes in providing services to Community Associations nationwide.

You should begin recieving the new coupons in early March. If you have not recieved them by March 20th, please contact the Management offices at 703-406-0820. Please note that owners currently using direct debit will not be affected and no action is required."

[Brian]

Hi Miss J,

I agree, "software error" is usually human error, either a data entry error or a programming error. But calling it a "software error" sidesteps responsibility.

Brian

[W&M Girl]

Same thing happened to me. Between this and the screwup mentioned earlier in the post, I decided to cancel our direct debit. I do not think they are trustworthy enough to have my account information on file. Interesting to note that in their email, they did not mention reimbursal of overdraft fees for anyone who may have been overdrawn due to the error (I wasn't but I am sure that some people may have been, since it was 3x the normal debit).

By the way, when I spoke to them, I was told it was a "bank error".

[Brian]

As a subscriber to general correspondence (I don't use direct debit), I just received the following email:

Attention all Direct Debit Homeowners:

Due to a software programming error that occurred during our transition to Community Association Banc, the assessment payment due April 1, for the property you own within Cascades Community Association was debited for the full quarter (April, May June) instead of only one month.

We apologize for this error and any related inconvenience. The program is being corrected and will be working properly before the July quarterly fee is withdrawn.

Should the withdrawal of the extra funds cause a hardship, we will be glad to refund the amount paid for May and June. If you choose to have this portion of the payment refunded or have other concerns, please contact us at
(703)653-3398, or toll free at 1-800-255-3486 to speak with a member of our Communications Center staff during business hours, or to leave a detailed message when our office is closed. If you receive a refund, fees due for May and June will need to be paid by check. Checks should be mailed to Cascades Community Association, c/o Legum & Norman, Inc., P.O. Box 65645, Phoenix, AZ 85082-5645. In July, we will resume direct debit by deducting one third of your quarterly fee each month.

If you have additional questions, please contact Nikki Perrin, the Bookkeeper located in the Management Office at Cascades, 703-406-0820 extension 101 or Martha Kaczmarskyj, General Manager, at 703-406-0456.

[jlchellman]

Happened to me too. I called L&N, told them I wanted my 2 months refunded, and the refund check is going out tomorrow. Thought it would be a big deal but it really wasn't at all. Will mail the payment to L&N for the next 2 months until the direct debit program is back up and running.