Publishing names of delinquent members

Started by MaryA1 • 10 replies • 3892 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

MaryA1 (Arizona)
Posts: 388

Posted:

From time to time we've been asked the question if it's OK to publish the names of delinquent members. You may not be aware but HOAs do come under the Fair Debt Collections Practices Act. Section 806 reads as follows:

"A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section: (3) The publication of a list of consumers who allegedly refuse to pay debts. . ."

I read this to mean it would be in violation of the FDCPA -- a Federal law -- to publish the names of delinquent members. HOA BOD's would do well to pay heed to this -- you never know when a member is not opposed to taking legal action against the assn for violation of gov docs, state or federal laws.

JohnO6 (Georgia)
Posts: 424

Posted:

I'm not an expert in the area, but I do have some experience (and legal advice) with this as Past-President of our HOA. This act refers to debt collectors. My experience was that our HOA attorney took the position that the management company and/or the attorney can be considered debt collectors under this act, but the HOA itself is not. It was on this basis that our legal advice was that while the attorney could draft certain communications (which by the nature of the communication would have let a 3rd party know about the debtors late payment status), that the communication would have to go out under the signature of the HOA Board but not either the attorney nor the management company. Perhaps this legal opinion pertained because we used a management company to send out delinquency letters and had the law firm under retainer to do subsequent collections. Perhaps if we had been self managed and performed those tasks ourselves, the opinion might have been different?

LawrenceC1 (Georgia)
Posts: 480

Posted:

The other distinction here is that the Fair Debt Collection Practices Act is talking about *public* disclosure. In an HOA all members are entitled to review the financial records of the Association, including without limitation the record of who has or has not paid their dues. As long as the Treasurer or Secretary limits the disclosure only to HOA members it is permissible. In fact, it could be considered obligatory.

SureshD
Posts: 268

Posted:

Agreed. Even if the BOD errs to the safe side and discloses addresses or lot #s, public records could be used to determine names.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

I read this to mean it would be in violation of the FDCPA -- a Federal law -- to publish the names of delinquent members.

Your interpreting it wrong. A HOA is not in the business of debt collection. It is an HOA. Thousands of towns publish the names of people and money owed who owe real estate tax, and other similar situations. Why can they do this? They are not debt collection companies.

Now if the HOA hired a debt collection company or third party to collect the money, they would fall under those rules.

We regularly publish the address of people who are behind in dues. Its much easier than publishing the names, because people come and go and get married, etc....

BrianB (California)
Posts: 2,820

Posted:

good advice here.. HOA's collecting their OWN debts are not debt collectors under the act (as many have stated). publishing names among HOA members is not a public forum (it is an internal business memo, as others have pointed out). and doing so is a slippery slope with some perils, risks, and potential rewards.

Key to the whole thing: think carefully what you really want to do, and then do it right, per your bylaws and charters. but think.

JenniferM10 (Illinois)
Posts: 97

Posted:

My question would be what purpose publishing the names would serve. My experience has been that there are two reasons people are delinquent - either 1) they don't have the money for whatever reason or 2) they don't want to pay (fighting with the board or just in general feeling they shouldn't have to).

For the people in situation 1, publishing their name is going to shame them, but won't magically make them able to pay. People with situation 2 wouldn't care, and would probably love a reason to vent their feelings to any neighbor who questioned them about it.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

Publishing dues not paid:

1. Informs members of your association that dues are not being collected. Paying members have the right to know if the dues are in trouble. Its an issue of transparency.

2. Shame. For the small percent of people who pay on time because they dont want to be on the list. Good. Better for the HOA.

3. Peer pressure. You see your neighbor on the past due list but also notice he just bought a new HDTV and hot tub. You might be inclined to shame him and he may pay.

4. Any other reason not mentioned.

Why wouldn't you want to publish who owes what? Dont you want your dues? If this is what it takes, do it! One less headache to deal with. We also have a huge fee for past due dues. Your HOA is much easier to run when your dealing with important issues and not chasing down dues.

SharonB6 (Pennsylvania)
Posts: 70

Posted:

Very Interesting.. Where do you publish your delinquent members list?

SharonB6 (Pennsylvania)
Posts: 70

Posted:

Very Interesting.. Where do you publish your delinquent members list?

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

Posted By SharonB6 on 12/10/2010 11:01 AM
Very Interesting.. Where do you publish your delinquent members list?

HOA website and at every meeting. People who did pay can even check the site to see if they have paid or not. Some pay months in advance and then forget.

Saves us from looking up accounts of forgetful owners. Anything a homeowner can do selfserve saves officers time doing repetitive tasks.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here