HB25-1043 – Strict Adherence Processes for Collections
As you may be aware, various legislation and changes were enacted this year. We’d like to bring your attention to a few changes:
HB25-1043: This bill requires strict adherence in the implementation of the Collection Policy for Foreclosure actions. As it cannot be assessed which files will get to the Foreclosure status, strict adherence must be followed for all collection matters. As such, the Association must now:
Send the Notice of Delinquency via Certified Mail. We recommend that proof of the Notice and the day it was mailedbe documented. Some firms are scanning copies of the posted Notice showing the Certified Mail tracking number, etc.;
Send the Notice of Delinquency via two of three other methods, which are text, email or phone call. This activity must also be documented; or
In the absence of a phone number or email on the Owner’s account, the Association must send the Notice of Delinquency via First Class mail. Note: this method does not satisfy the statute if the phone numbers and/or email are available to the Association.
The Payment Plan offer letter must include information regarding free resources related to the collection of assessments and foreclosures; see 38-33.3-209.5(5)(a)(V)(E);
Provide an Owner with a ledger within seven (7) days from the date an Owner requests such a ledger.
It is important to note that if the collection file gets to the Foreclosure status, an Owner can claim violations of the strict adherence process. The statute states the following:
38-33.3-316.3(5)
“If an association has violated any foreclosure laws, the unit owner in relation to whom the violation occurred may, within five years after the violation occurred, file civil suit in a court of competent jurisdiction against the association to seek damages. The court may award the unit owner damages in an amount of up to twenty-five thousand dollars, plus costs and reasonable attorney fees, if the unit owner proves the violation by a preponderance of the evidence.”
For additional assistance with this or other matters, please contact our office.
Do you have additional questions about these or other legal matters? If so, we are here to help, please contact us at: info@westernlawgroup.com | 9351 Grant Street, No. 120, Thornton, CO 80229
Phone: (720) 542-8724 | Fax: 720.542.8726 | Toll Free: (844) 518-4684 | info@westernlawgroup.com | WesternLawGroup.com
THIS IS NOT LEGAL ADVICE. FOR INFORMATIONAL PURPOSES ONLY.