"Unconscionable:" A Dramatic Term of Art...

...Yet It's Still Prompted by Ye Olde HOAs.  See below.

In response to an online query, which merited some extra room herein:

QUESTION:

"I'm in California and my HOA is suing me for $8,000 for an unpaid principal balance of only $1,800.00. The difference is their collection costs and attorney fees. I believe this amount of fees is excessive, "unreasonable," and a violation of the Fair Debt Collection Practices Act ["FDCPA"]. I have found successful consumer cases in Nevada but is there any state or federal protection (statutes?) I have here in CA? I plan to pay it, then sue them to recover my money."

Source: www.lawguru.com A great general-legal-information website

OUR ANSWER:

The FDCPA at 15 U.S.C. §1692f(1) describes the following violation:

"The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law."

Other consumer protections may apply; CA has its own "Rosenthal Act," a State version of the FDCPA.  In any event, it's advisable to consult with an attorney specializing in fair debt collection.

A caveat regarding HOAs: With many homeowners now in default, they have fallen upon hard times, and are motivated to aggressively collect.  There may be conditions that prompt retaliation against a specific homeowner. Hence, we espouse consumer rights, but don't recommend jumping the gun with a lawsuit-- that may result in a Pyrrhic victory--prior to attempting to negotiate a fair resolution. 

From a personal standpoint: a purpose of HOAs is more-or-less to police neighbors' conduct.  Yet, having resided in both HOA-regulated neighborhoods and HOA-free ones,  it was in the latter that I consistently enjoyed greater Quiet Enjoyment (peace and quiet). 

San Diego Bankruptcy Attorney, Asaph Abrams
Offering free, no-obligation bankruptcy consultations in San Diego. Visit us at http://www.bankonitsd.com/ or call 858-344-0500. E-mail admin@abramslawsd.com to set an appointment.