Under the federal Fair Debt Collections Practices Act (“FDCPA,” 15 USC §1692, et seq.), a “debt collector” is an individual or business that regularly attempts to collect debts owed by consumers to third parties.  15 USC. §1692a(6). Whether an individual management company falls within that definition is a case-by-case question. Ultimately, it boils down to what the “principal purpose” of that specific company is.

If a management company focuses its time and attention on collecting unpaid assessments and enforcing liens, there is a good chance a court would view it as a “debt collector” under the FDCPA.

On the other hand, a management company more concerned with maintaining the association’s facilities but occasionally tries to collect delinquent assessments as a small part of its work might not qualify as a “debt collector” under the FDCPA.  See, e.g., Alexander v. Omega Management, Inc., 67 F. Supp. 2d 1052 (D.Minn 1999); Franceschi v. Mautner-Glick Corp., 22 F. Supp. 2d 250 (SDNY. 1998).

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Understand The Law That Protects Owners From Abusive HOA Debt Collection Practices

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