It’s an awkward position to be in. If just a few homeowners aren’t paying their HOA fees, it can really start to affect your financials. But what you do can be just as important as what you don’t do in response to such situations. In fact, a lot can be on the line if you don’t act appropriately.
What’s the best course of action under such circumstances? Generally speaking. HOAs and their board members should make every effort to accommodate delinquent association members. Under the protections afforded by the Fair Debt Collections Practices Act (FDCPA), HOAs should never harass homeowners for unpaid dues. In fact, the FDCPA requires those who collect debts from individuals to refrain from tactics that might be considered predatory or aggressive. It’s a fine line to walk.
The FDCPA spells out what communication and interaction can look like. For example, it prohibits HOAs from:
- Harassing homeowners
- Threatening homeowners with violence or harm
- Publishing names of homeowners who are delinquent or refuse to pay
- Annoying homeowners with repeated phone calls
- Misrepresenting the amount homeowners owe
- Depositing homeowners post-dated check early
- Providing personal information to anyone else without a homeowner’s permission
This legislation also requires HOAs to notify homeowners in writing, if there are outstanding debts. In the event of such communication, the letter must detail the attempt to collect a debt, the amount of the debt and the association’s name, and it must state that the resident has 30 days to dispute the debt in writing. If an HOA doesn’t follow such a protocol, it could be liable to the homeowner for damages, attorneys’ fees and court costs.
This a good reminder to revisit your HOA’s governing documents so that everyone is on the same page when it comes to the appropriate course of action. If you don’t have policies and procedures in place, consider this the perfect occasion to do your due diligence. Not sure where to begin? No worries. You can turn to a trusted partner likePMI Prince William to ensure everything is on the up and up when it matters the most.
Our professionals implement proven, yet flexible, systems that resolve all association concerns. We can custom-design a solution around your association’s specific requirements and budget needs. Our main priority is to help increase the value of your community. Our managerial staff provides a variety of ways to help your association/HOA achieve this goal. Visit https://www.pmiprincewilliam.com/to learn more.
