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Updated 8 months ago,
PM charge late fee but no reasonable reason
After pm forwarded my case (tenant did not pay rent) to collection agency, the judgement claim balance is $7,569.33. The debtor will make $200 monthly payments until paid off.
1/3 of the $200 goes to the agency, and 2/3 goes to my account and within this 10% of 2/3 goes to PM as service fee. Simple and fair.
First month received that $200 and was distributed as above, Everybody happy.
Second month received $200 on time and PM break down that amount and claim there is $45 late fee, and all that $45 goes to PM account. Means I received less then I expected. So, I sent email asking PM why there is late fee existing? And they replied:
"Hi ,the total judgement not only includes physical damages that you had to pay initially to secure another tenant but also includes outstanding rent balance if any and late fees if any and any other charges that may have been charged against the previous tenant. The $45 is most likely a late fee.
So, as the funds are received from the Attorney, they are applied to all charges in arrears. Eventually you will receive funds less the 1/3 collection fee from the Attorney forwarded to you."
After sent them third email and finally got reply but that did not answer my question. Any idea what PM trying to do? Why not just following the distribution of the first month?