Debt collector in violation of the law?

[kimr0519]

To make a very long story short, the ONLY reason we know about a debt collection attempt was because of an unauthorized hard inquiry on my husband's credit. *We have had zero written correspondence OR phone calls regarding this debt* We called the credit bureau and said that that is illegal, for one, because they obtained a copy of his credit report as if they were a lender, which is not accurate. They are a collection agency.

Two) Apparently they have had this debt since July, hard hit my husband's credit in September, and WE initiated contact with them, then less than a month later, put it on his credit as a collections account. Again, we had no idea we had this debt. We discharged a house in a chapter 7 in 2011 along with past due HOA fees. Apparently, according to the collector, the HOA started collecting again in 2012 and just sent the debt to collections in 2018, a month shy of Colorado's statutes of limitations. The HOA has not even attempted correspondence.

Anyway, so it that a legal practice? They had an account against us since July of 2018 and did not attempt any correspondence with us at all until this hard inquiry, and even then we had to call them. And THEN less than a month after the hard inquiry, they put it on his credit as a collections account.

My husband's job relies on a clean credit report and this has already threatened our livelihood.

Advice from here?

What we have done so far:

-Ask for debt verification, which they have yet to send us

-File complaints against them and the HOA

-Put a fraud alert on hubby's credit

-Disputed the hard inquiry

What else needs to be done? We are not arguing the validity of the debt, but that is also a long story. We are arguing their practices.

 

[TigerD]

You are not going to like the answer.
You can pay it in full with all of the accrued interested and pay the HOA bill in a timely fashion going forward and in a few years, this will not impact your husband's credit nearly as much.

We are not arguing the validity of the debt...

Really that is the end of the discussion. Nothing else in what you posted is relevant or particularly important.

1. I'm not sure you understand the difference between a "hard" pull and a "soft" pull. But it doesn't matter. Look at your contract with the HOA. You have paid attention to the bylaws, right?
2. I don't think you understand how Statutes of Limitation works especially in connection with your HOA debt -- which isn't even remotely close to passing the SOL. See every month or every year, you make a new transaction with the HOA. Every transaction either stands alone or has the effect of renewing the SOL. I am willing to bet that the HOA has some statute or caselaw in Colorado that renews the SOL with every missed payment. (I'm not going to look it up - but you are welcome to.)
3. They don't have to contact you.
4. Perhaps you and your husband could, I don't know, pay the debt? Then you wouldn't have to worry about his livelihood. And the HOA would be happy too.
5. As for what you have done: They don't have to respond to you; your complaints are rather meaningless - to whom did you complain and did you tell them that you are upset because you owe a valid debt and they are not contacting you about?; A fraud alert will serve to inform potential creditors that they should look at your file a bit closer before approval - very wise; dispute the hard inquiry - okay that and a cup of coffe will get you a quarter.

Now try this:
Call the collection agency.
Offer to settle the account for payment in full.
Make said payment.
Wait six months for the files to be closed and shipped to storage.
Then file a dispute with the credit bureaus.
Maintain all future HOA payments on time.
Consider moving out those little Nazi encampments calling themselves HOAs and sacrifice your freedom to one again.

TD

PS.... added: I mean really? Why would anyone want to pay for similar rules and conditions as living in your parents' basement? And give the neighborhood gossips veto power over your enjoyment of the single largest purchase of your life? HOAs are really, really dumb things for people to buy into.

 

[kimr0519]

We have not lived in this house since 2010, as per our lawyer's advice, and it was foreclosed in 2014.

And how do they not have to contact me? How am I supposed to know we owe someone money without them telling us that we do?

Trust me, no HOAs ever again.

 

[kimr0519]

You are not going to like the answer.
You can pay it in full with all of the accrued interested and pay the HOA bill in a timely fashion going forward and in a few years, this will not impact your husband's credit nearly as much.


Really that is the end of the discussion. Nothing else in what you posted is relevant or particularly important.

1. I'm not sure you understand the difference between a "hard" pull and a "soft" pull. But it doesn't matter. Look at your contract with the HOA. You have paid attention to the bylaws, right?
2. I don't think you understand how Statutes of Limitation works especially in connection with your HOA debt -- which isn't even remotely close to passing the SOL. See every month or every year, you make a new transaction with the HOA. Every transaction either stands alone or has the effect of renewing the SOL. I am willing to bet that the HOA has some statute or caselaw in Colorado that renews the SOL with every missed payment. (I'm not going to look it up - but you are welcome to.)
3. They don't have to contact you.
4. Perhaps you and your husband could, I don't know, pay the debt? Then you wouldn't have to worry about his livelihood. And the HOA would be happy too.
5. As for what you have done: They don't have to respond to you; your complaints are rather meaningless - to whom did you complain and did you tell them that you are upset because you owe a valid debt and they are not contacting you about?; A fraud alert will serve to inform potential creditors that they should look at your file a bit closer before approval - very wise; dispute the hard inquiry - okay that and a cup of coffe will get you a quarter.

Now try this:
Call the collection agency.
Offer to settle the account for payment in full.
Make said payment.
Wait six months for the files to be closed and shipped to storage.
Then file a dispute with the credit bureaus.
Maintain all future HOA payments on time.
Consider moving out those little Nazi encampments calling themselves HOAs and sacrifice your freedom to one again.

TD

PS.... added: I mean really? Why would anyone want to pay for similar rules and conditions as living in your parents' basement? And give the neighborhood gossips veto power over your enjoyment of the single largest purchase of your life? HOAs are really, really dumb things for people to buy into.

A

 

[kimr0519]

Oops, sorry, don't know how to use the reply function appropriately yet.

I do know the different between a soft and hard pull, thanks. They pulled his credit as if they were extending us a line of credit.

 

[TigerD]

We have not lived in this house since 2010, as per our lawyer's advice, and it was foreclosed in 2014.

And how do they not have to contact me? How am I supposed to know we owe someone money without them telling us that we do?

Trust me, no HOAs ever again.

Good on avoiding HOAs in the future. I must have misunderstood your original post, I took it to mean you were still living in the home. Did the HOA stop billing you in 2014?

I would recommend negotiating a settlement of the debt. Review the tips at the top of the debt collections forum. Pay it. Wait six months or so and dispute the entries on your credit report. Once the payment is made and the file closed, the collection agency has little reason to expend the money and time responding to an inquiry from the credit bureau.

TD

 

[adjusterjack]

I do know the different between a soft and hard pull, thanks. They pulled his credit as if they were extending us a line of credit.

That's only your interpretation but if you read the Fair Credit Reporting Act you'll find that

any consumer reporting agency may furnish a consumer report under the following circumstances and no other:
To a person which it has reason to believe
intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer;

https://www.ftc.gov/system/files/545a_fair-credit-reporting-act.pdf

We have not lived in this house since 2010, as per our lawyer's advice, and it was foreclosed in 2014.

So, you have as much as 4 years worth of post discharge HOA fees that accrued while you still owned the home.

We have had zero written correspondence OR phone calls regarding this debt

They have no obligation to chase you down.

So far, I don't see anything that is illegal about the collection agency's behavior and agree with TigerD that paying the debt is the best move you can make if your husband's job and credit are that important to you.

 

[LdiJ]

Good on avoiding HOAs in the future. I must have misunderstood your original post, I took it to mean you were still living in the home. Did the HOA stop billing you in 2014?

I would recommend negotiating a settlement of the debt. Review the tips at the top of the debt collections forum. Pay it. Wait six months or so and dispute the entries on your credit report. Once the payment is made and the file closed, the collection agency has little reason to expend the money and time responding to an inquiry from the credit bureau.

TD

I am not sure that the OP owes the debt at all. They discharged the house in the bankruptcy and if their lawyer was any good they would have included the HOA as a creditor in the bankruptcy as well.

 

[adjusterjack]

I'm reading it that the OP accrued 4 years of NEW post bankruptcy debt with the HOA while they still owned the home prior to foreclosure.

 

[LdiJ]

I'm reading it that the OP accrued 4 years of NEW post bankruptcy debt with the HOA while they still owned the home prior to foreclosure.

The OP moved out of the home in 2010 and did not reaffirm it. If the lawyer properly included the HOA in the bankruptcy the OP shouldn't have accrued any new debt, even if the bank chose not to put the property in their name until 4 years later.

 

[TigerD]

The OP moved out of the home in 2010 and did not reaffirm it. If the lawyer properly included the HOA in the bankruptcy the OP shouldn't have accrued any new debt, even if the bank chose not to put the property in their name until 4 years later.

That is incorrect. The Bank didn't foreclose on the property immediately after Bankruptcy. The OP is on the hook for HOA dues from Bankruptcy discharge through the foreclosure.

Yes it is crappy situation. And yes, it is wrong morally -- but it is legal.

TD

 

[LdiJ]

That is incorrect. The Bank didn't foreclose on the property immediately after Bankruptcy. The OP is on the hook for HOA dues from Bankruptcy discharge through the foreclosure.

Yes it is crappy situation. And yes, it is wrong morally -- but it is legal.

TD

I have heard that argument before. I have a hard time believing that an HOA is immune to bankruptcy protection.

 

[TigerD]

I have heard that argument before. I have a hard time believing that an HOA is immune to bankruptcy protection.

They aren't. But bankruptcy doesn't extinguish the debtors obligation for future debts.

 

[LdiJ]

They aren't. But bankruptcy doesn't extinguish the debtors obligation for future debts.

I see what you mean, but that is a loophole in the law that I would like to see closed. Banks should not be able to avoid dealing with a bankruptcy foreclosure and the costs of such by simply refusing to foreclose.

 

[adjusterjack]

Banks should not be able to avoid dealing with a bankruptcy foreclosure and the costs of such by simply refusing to foreclose.

Why not?

Why should a bank be compelled to take a house back if it doesn't want to. Or a car for that matter. We read a lot about people stuck with cars that they can't get rid of because the bank won't repo it.

The bank's not attempting to collect a discharged debt, it's just ignoring it.

And even if the foreclosure is on the list there may be thousands of foreclosures (or repos) ahead of that one.