Community Association Collections and Lists Of Delinquent Owners.
I recently posted a question on a few social media groups that are exclusive to the community association. In this question I asked; “How can the good paying members of a community association know who is delinquent in paying their maintenance fees?” It was a simple enough question, or so I thought, because the response was plentiful and a heated debate ensued.
Many felt that such information was not and should not be available to the members of the association. Others pointed out that in some states financial information, regardless of its content, must be made available to every member by statute. Some felt that it was a violation of the FDCPA (which is not so because a first party creditor (the association) is not subject to the FDCPA). So as far as the access to such information I would say that every state and almost every association needs to look at their bylaws as well as their local community association laws. So access is still a debatable issue, and I was not surprised by the responses. What came next, while not totally a surprise and to a large extent sad.
Almost everybody, in fact everybody expected that once this information was made available it would cause the worse to come out in people. The biggest issue was the possibility that this information would be disseminated in a way that would be hurtful. Lists would be published, names would be posted on bulletin boards, and confrontation would be the order of the day. Let me pause here and say, that as a collections specialist for community associations I strongly oppose the publishing of lists of such nature and making this information public. The “Scarlett Letter” of delinquency will not help and most likely be counter-productive. It is in no way near “best practices” when it comes to collections. What was sad though is that not one response hinted towards the concept that maybe if such information was available, and people could see it, perhaps those people who are delinquent could be helped.
Spontaneous and neighborly acts of human kindness are an integral part of the American cultural fabric and make us an “exceptional nation.” Recently some world leader wrote in a NY Times Op Ed Editorial that we were not an “exceptional nation,” and that is not true. I was sad to see that upon learning of financial problems and delinquencies most people expected the worse out of other people. There was not one person who responded that this list may be used to reach out and help a family or an individual, and maybe ease their way. Everybody was expecting that once this information was known, the mob would be out in the streets with torches and pitchforks hunting down delinquent owners like witches in 17th Century Salem. Why not find out who is in trouble and in a tactful, diplomatic way that does not hurt the dignity of a family in need see what can be done? I’m not going to make suggestions, because as I said we are Americans, we are exceptional, and neighbors helping neighbors is nothing new to us. Let us hear some ideas.
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