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More than two dozen HOAs face allegations of violating the Fair Debt Collection Practices Act

Dec 03, 2012 Philip Burgess

A number of Homeowners' Associations are finding themselves in hot water over their debt collection and payment practices. More than 24 HOA management companies are the subjects of a class-action lawsuit filed in Maricopa County Superior Court in Arizona, KPHO-TV reports. The lawsuit alleges the firms violated the Fair Debt Collection Practices Act when trying to recoup payments. Specifically, residents are claiming the companies charged them hundreds, if not thousands, of dollars in unnecessary fees. Robert and Kristy Leatham, for example, were surprised when their HOA management company put a lien on their home after claiming they owed hundreds of dollars. "We keep up our house, we keep up our yard, don't park on the street and pull our garbage cans back," Kristy Leatham told the news station. "For them to place a lien on our home, it's just not fair." HOAs are no strangers to controversy. Many have begun to "ticket" speeding residents, who are unsure whether such tickets are legal and would affect their insurance or driving records, Nasdaq reports.