HOA Reporting "Paid" Fees to Credit Bureau

Actually I have found my answers. we have no rights.

https://www.sperlongadata.com/legal-memorandum-on-hoa-reporting

II. Conclusion

Based on the analysis below, HOAs and their management companies are legally permitted to furnish payment information to CRAs and there is little legal risk should they elect to do so under FCRA or the Fair Debt Collection Practices Act.

https://www.sperlongadata.com/faq

Does Sperlonga need SSN's, dates of birth, or bank account information?

No, we do not need that information from you, the Data Furnisher, in order to produce credit reports files. Our API will not have access to that kind of information in a management company’s software system. The credit bureaus already have the owner information and accounts are connected via the property address and title information.

I would check with a lawyer in your area that specializes in credit repair, credit fraud. You mentioned that these entries are being reported as revolving credit, I would challenge that because HOA assessments are not revolving debt. originators of debt have an obligation to accurately report data to collection agencies and those agencies need to accurately report data to the CRBs.

Just my opinion, HOA assessments are not revolving debt, they're obligatory and should only be reported to the CRB upon default i.e. lien or foreclosure.

Sounds like your declarant is setting themselves up for a lawsuit.. My opinion is to set your home up to a trust or LLC so that way these things stay off of personal CBR.

Well, yeah - it's no different from what the credit card companies do. How do you think bankruptcies, liens and all that stuff wind up on one's credit report? If the information's good, I don't see an issue and if your credit application was shot down because of this, that's all the more reason you need to get clarity.

Before you scream "I'm gonna sue," read the credit report to see what it says. If your HOA fee is being reported as a revolving charge account that IS incorrect and the credit reporting agency should fix it. You should be able to file a complaint with Equifax or whomever and see what happens first. If they won't correct it, you can still submit a comment of your own regarding that account and it would have to be sent along with your credit report when it's requested.

And talk to the developer about this, if you haven't done so already - what did they say when you expressed your concerns?

Such is HOA life. When you buy into a HOA community, you become an association member, and as a member, you're legally obligated to pay for maintenance of the common areas that you and all your neighbors own collectively. If you aren't getting the services you're paying for, you should be holding the developer accountable. It is a drag to pay and then duke it out in court, but my experience in consumer protection taught me the same thing can happen over airline tickets or replacement carpet, which you often pay with - a credit card.

The problem with developers is that as long as they run the show, the association documents (Bylaws and CCRs) and other policies will be written in a way that benefit THEM, which is what any business does. Once the community is turned over to the homeowners, the association board of directors (elected by homeowners like you) take over and then policies can be enacted, tweaked or tossed altogether, according to the documents. Sometimes, the documents themselves need to be reviewed by the association attorney to ensure they keep up with changes in state and federal law - that may be what will need to happen here.

You're correct that assessments are not like loan payments or lines or credit, BUT they do help to pay for maintenance and replacement of the common areas which you and your neighbors own jointly as members of the association - stuff like lawn care, clubhouse cleaning, street repaving or whatever else your assessments are supposed to cover. Indirectly, you are getting services, although the board, not you, hired the lawn care company.

As you know, when some people can't or won't pay their fair share, everyone else winds up indirectly subsidizing those who don't. The association board of directors (elected by homeowners like you) are supposed to oversee the operations of the association, so if they can't or won't do their job, it's up to homeowners to vote them out and put in people who will. Part of that supervision includes making sure EVERYONE pays assessments in full and on time.

I was board treasurer of my association for five of the 10 years I served and collecting delinquencies wasn't pretty - it was downright unpleasant, to be frank. The biggest thing that irked me was that the deadbeats (and we had quite a few) continued to get their snow shoveled, a new roof and trees pruned, but not pay anything, while the rest of us work every damn day to pay our bills like we were taught grown folks do. We are a townhouse community, so if you're delinquent, we couldn't refuse to clean your portion of the roof gutter for non-payment - that can impact the portion of the owners who do pay. Is that fair? You don't pay, but when I see you, you're driving a new car? If putting the smackdown on your credit report, or the threat thereof, will keep you from skipping out on your legal obligation, whatever works. I suspect that's why these companies came into being and have grown (capitalism and all that).

All that said, I agree with you that credit reports must be accurate and if yours isn't, you do need to file a complaint (the consumer protection division in your state would be a start).