Assessment collections can be a legal minefield and homeowners associations should be certain to have all of their ducks in a row when beginning collections work. Certain law firms have begun aggressively pursuing litigation under the Federal Fair Debt Collections Practices Act and California's Rosenthal Act in order to punish debt collectors and creditors alike for various missteps in collections work. In fact, some debtor defense attorneys have attempted to coerce admission to FDCPA violations during the discovery phase in suits brought by HOAs against delinquent owners. They then turn around and use the information gained in the HOA's suit against a homeowner in order to sue the HOA.

 While these practices are designed to confound HOA collections work, they can be avoided if the HOA has clear, concise, and consistent assessment collection practices. The first step toward FDCPA compliance is to ensure your governing documents, including the association's collection policy, are consistent with each other, the FDCPA, and the Davis-Stirling Act. If you would like the attorneys at Kriger Law Firm to review your governing documents and collection policy, give us a call and we would be happy to help.