Collections of Dues

Started by RobertR6 • 2 replies • 1347 views

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RobertR6 (Indiana)
Posts: 2

Posted:

Is it legal to call and knock on doors trying to collect association dues from delinquent homeowners before it goes to the collection lawyer? I know there is laws on how Collection Agencys do business. But has a BOD member does those laws apply? If so what are they? Thanks

MaryA1 (Arizona)
Posts: 7,043

Posted:

Robert,

I've heard that the FDCPA does apply to collection of HOA assessments but I'm sure that means if the BOD is collecting or if their attorney is doing the collecting.

I would never telephone a member or knock on their door to ask that they pay their delinquent account! It's much better to send a letter which gives you a record of the attempt to collect and should outline the collection procedures and what costs are being charged besides the delinquent amount. Verbal discussions only result in hearsay and people have a habit of lying about what was said. Believe me I know -- been there, done that, if you know what I mean. I know you are probably wanting to be a nice guy, but it's really best to send a letter.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Somehow, our president and another board member also used to think this is was a way to "schmooze" the homeowner or to try reason with them to pay their dues.

I ,myself, think it's downright dangerous and inappropriate. No member of the board can make arrangements or take payments, so I'm not sure why the personal visit.

A firmed-up policy on collections of dues has stopped these board members from making personal visits.

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