Punitive interest rates
Definition: Usury
Interest at unreasonably high rates.
—Oxford dictionary
“Take thou no usury of him, or increase: but fear thy God; that thy brother may live with thee.”
—Leviticus 25:36
In a recent Superior Court judgment, (Court File #: CV-13-493321)
Justice D.L. Corbett suggested that the mediator/arbitrator that hears
this application replace the condo corporation's "punitive" interest
rates that are allowed under the Condominium Act and it would be
appropriate to award interest at the Courts of Justice Act.
The present Condominium Act does not limit the interest rates that a
condo corporation can charge an owner for outstanding fees or charge
backs and these fees are often set at 18% and at some condos 24% per
annum.
These rates are deliberately set high to discourage late fees but these
rates are punitive in nature and an Act that falls under consumer
protection should regulate the interest rates that non-profit condo
corporations can charge the owners.
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