Collection agency for HOA fees

I am trying to bring myself current on past due HOA fees. The account has been sent to a collection agency, and I am told the only way I can bring my account current is to pay them. Aside from late fees and interest, they collection agency has a number of other fees that total about 35% of the total amount owed. The fees are all very inflated charges for things that I never agreed to, such as Copying Fees, Mailing Fees, Courier Fees, and the most ridiculous to me: Partial Payment Return Fees, which are from checks that I sent to the HOA rather than the Collection Agency when I did not know the account had been sent to the Collection Agency. In all, the fees total over $3000.

My question now is, what, if anything, can I do about this? The Collection Agency is telling me that I am responsible for all fees. What is my best course of action? Is it possible to at least negotiate?

Appreciate the quick reply. I apologize if I have made mistakes in my posting here.

I have contacted the HOA and they said that I must contact the collection agency now because they are in charge of the account. I was told this by an employee at the HOA Mgmt office and I have tried getting in touch with the president to see if they could help, but have been unsuccessful in doing so.

Nobody has cashed the payments I sent to the HOA. They were sent back to me and I was charge $250 for each of 3 returned checks.

I am not positive that it has been "sold" to the collection agency. I was only told they hold the account now. Are these one in the same?

They have offered payment plans, but all include the over $3000 in fees. I'd be willing to pay all at once if I can get a significant portion waived. Just thought I'd check here as to my best course of action.

frastew:

I am not positive that it has been "sold" to the collection agency. I was only told they hold the account now. Are these one in the same?

Doesn't really matter.

If the account was sold then the collection agency controls and collects.

If the account was assigned to the collection agency on a commission basis, then there is a contract between the HOA and the collection agency saying that the collection agency controls and collects and the HOA doesn't.

You could try negotiating a lump sum cash settelment to reduce some of the fees, but the collection agency has no obligation to accept anything other than 100% of the arrears plus interest, fees, and costs. Your contract with the HOA makes you responsible for all of those additional costs.

You are especially vulnerable because the HOA can just put a lien on your property while the balance grows to double or triple the amount over the next few years if you keep arguing about it.

Bottom line: You screwed up by going into default. Your only way out is to pay what the collection agency says to pay and move on. They have you over a barrel.

Thanks for your reply. I have realized how vulnerable I am and obviously I wish this had never happened. It just seems unbelievable that they can charge me anything they want for whatever amount they want. Are there any limitations on the fees?

What would be the best way to attempt to negotiate a lump sum settlement?

frastew:

Are there any limitations on the fees?

No really. It's basically a legal form of extortion. You either pay the fees now or you end up in court where you end up paying thousands for their attorney fees, and then some.

frastew:

What would be the best way to attempt to negotiate a lump sum settlement?

Same way you negotiate buying a car.

Ask how much of the fees they'll waive for a cash settlement today. Then, if you don't like the answer, you offer less.

Keep in mind that the collection agency doesn't get paid until you pay. So your leverage is that you can come up with a large amount of cash today if they cut you some slack.

Thanks for the help. I'll have to give that a try. Better to do it myself or try to hire someone with experience in this sort of thing?

"Better to do it myself or try to hire someone with experience in this sort of thing?"

Since you are not experienced with this, I recommend all comminication be done in writing.  Also, check online to make sure this collection agency is a valid one.

They seem to be a real collection agency anyway.

Is email ok for doing it in writing?

Yes, because that way you can always refer to what they have said, and it avoids any "misunderstanding" that a phone call has the potential of.

Email's OK for negotiations.

But the settlement agreement should be a written document signed by a corporate exec of the collection agency and you want that in hand when you hand over the check.

Ok, thanks. Please let me know if you, or anyone else, thinks of any other tips. I appreciate the help.

TIP # 1:  Check all 3 of your Credit Reports.  If this Collection Agency (CA) is reporting this account, make sure they will stop doing so upon settlement, OR REPORT IT AS "PAID IN FULL".

TIP#  2:  Check, or make sure this CA operates in your state, and has no negative complaints with the Better Business Bureau (BBB), and has a license under the name they are telling you.  This can be inquired online without there knowledge.