Credit reporting on assessments
“Sperlonga Assessment Reporting” flyer is in our board packet for review and discussion at our next board meeting. This looks like a new movement to add homeowner assessment payment tracking to their credit report. I’m initially feeling uncomfortable. Do you know anything about this? Your thoughts?
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Barbara,
While I’ve not heard about this product or firm, HOA attorneys and association boards have made many efforts to use reporting to the three major credit rating systems for assessment delinquencies to drive homeowners to correct those delinquencies. While nothing in law allows them to do this, nothing in law prevents them from doing it. While I understand that there are many reasons why homeowners fall behind in assessment, the whole purpose of HB-2648 last session was to protect homeowners’ ability to pay that debt. If you pay off what you owe in assessments, then the association cannot report delinquency on that assessment even though you may also owe other money associated with that debt. That law will go into effect tomorrow, but any collection activity initiated before tomorrow may contain excessive and unreasonable collection fees.
Dennis