Complying With Debt Collection Laws When Collecting HOA Assessments

A vital function of the operations of a homeowners association is getting their owner-members to pay assessments on a regular and timely basis. The timely and consistent collection of assessments by associations managed by volunteer boards is impacted by state and federal regulatory oversight of collection practices. Although there have been conflicting court decisions on the applicability of debt collection laws to a homeowners association’s efforts to collect assessments from homeowners, state and federal fair debt collection practices laws are likely to apply to community association collection efforts, particularly when the association enlists the assistance of third parties in the collection effort.

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