A.H. from Hennepin County, Minnesota writes:
Dear Mister Condo,
Is this legal? HOA just gave notice today saying all payments will be collected by autopay ACH only, no credit or debit and must be set by XX/XX/2020. I have no problem logging in and paying via e-pay, which would be great, and is offered to the rentals they manage in the building, but not the homeowners. It’s been bill pay thus far.
Mister Condo replies:
A.H., I am not an attorney so I cannot offer you a legal opinion on this matter. I will say that many associations work closely with their banks to determine the most efficient and practical manner to collect fees and assessments. It is quite possible that the bank has made the association some type of “deal” to encourage an ACH-exclusive system. The Board, democratically elected by the HOA members, does have the authority to negotiate such deals and the owners are beholden to the terms of the agreement. In this case, it would appear that they have agreed all payments will be made via ACH. In our modern world, electronic ACH is quite common and certainly saves time and effort on the part of the Property Management firm, the bank, and ultimately, the association. No more lost checks, no more bank deposits to be made. It really makes sense. All the best!