HOAleader.com - Tip of the Week - September 4, 2015
Published: Fri, 09/04/15
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HOA Owner Wins Big Against Collections Company: Why You Should Care
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In this week's tip, we discuss what you should know about a troubling case in Nevada in which a homeowner won a half-million-dollar-plus judgment against two HOA collection firms.
Melinda Ellis v. Alessi Trustee Corp. involved a Nevada owner of a home in the Arrowcreek Homeowners Association. Ellis allegedly owed her HOA money, and the association referred the account to the Alessi Trust Corp., later named Alessi & Koenig LLC, for collection.
The details of the collection company's actions aren't reported, but in August 2015, a jury awarded Ellis $466,000 plus her attorneys' fees and costs, for a total judgment of $614,091.04, according to her lawyer, Mark Bourassa. Ellis claimed violations of the federal Fair Debt Collection Practices Act and civil racketeering against the collection company.
Ellis's lawyer appears to admit his client owed the HOA money: "Of course, we're pleased with the result, but the important thing here is that we saved our client's home and restored her good name," said Bourassa. "Folks mistakenly assume that if they owe the money, they don't have any recourse against aggressive collection agencies."
Whatever the collections company did, it wasn't pretty. "A $600,000 verdict doesn't happen on a whim," says Corbin Seti, senior vice president of community and lifestyle services at FirstService Residential in Las Vegas. "Something happened to put that person in collections. But then something drastic must have happened for her to get a judgment in that amount."
Nathaniel Abbate Jr., a partner at Makower Abbate & Associates PLLC in Farmington Hills, Mich., who represents associations, has encountered shady collections companies. "Our clients ask for recommendations, and we have to bite our tongue a lot of times," he says. "There are a couple of unscrupulous places in Michigan that hold themselves out as being really productive for associations. Invariably they end up pretty much bilking them. It's been the subject of a class action suit for one of the entities."
Why should you care? "You're a community, a small business, and a small government, but first and foremost, you're a community," asserts Abbate. "Everybody has reasons for falling behind. Some are bad, and some are legitimate, but collection agencies don't care."
Protect the community you've painstakingly worked to build with our new article, 6 Tips for Choosing the Right HOA Collection Company: http://www.hoaleader.com/members/1226.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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HOA Owner Wins Big Against Collections Company: Why You Should Care
In this week's tip, we discuss what you should know about a troubling case in Nevada in which a homeowner won a half-million-dollar-plus judgment against two HOA collection firms.
Click here to read full article:
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6 Tips for Choosing the Right HOA Collection Company
A homeowner in Nevada has won a half-million-dollar-plus judgment against two HOA collection firms for violations of federal and state consumer protection laws. The HOA wasn't liable, but if you're a smart board, you certainly want to avoid hiring a collection company that's going to violate your owners' rights. Here is what you should know about happened in Nevada--plus 6 tips for choosing a collection company that gets homeowners to pay up but don't harass them.
Click here to read full article:
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The Flaws You'll Find in Fundraising for Your HOA
In this week's tip, we weigh whether you should consider fundraisers to cover HOA expenses. Short answer: Our experts have concerns. But it's not out of the question.
The idea comes from a blogger who advocates holding fundraising events like holiday display tours; knitting, gardening, or car maintenance seminars with owners who have a particular expertise serving as instructors; neighborhood sales; and hosted dinners after which guests can leave donations.
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HOA Need Repairs? Have a Fundraiser! Or Not.
Trying to avoid spending money or raising assessments? One blogger advocates hosting fundraising events to help pay for HOA expenses. Examples: Holiday display tours; knitting, gardening, or car maintenance seminars with owners who have a particular expertise serving as instructors; neighborhood sales; and hosted dinners after which guests can leave donations.
Click here to read full article:
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In this week's tip, we reveal how an Arizona HOA has racked up tens of thousands in savings on its water bill.
Crystal Gardens is an Avondale, Ariz., association with more than 900 homes on 72 acres. Its board and manager declined to comment for this article, referring questions to its vendor, Chris Husband, the owner of Phoenix-based Liquid Technologies LLC, which focuses on water conservation for commercial properties, HOAs, and other clients.
Click here to read full article:
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