On August 10th, HB 22-1137 became law. All associations not exempt from the relevant provisions of CCIOA, must now take the following actions regarding delinquent accounts:
- Maintain a record of any contact with a delinquent owner, to include the type of communication (phone, email, etc.) and the date and time of contact.
- Before a delinquent account is referred to the collection attorney (or agency), a majority of the board must vote to approve referral of the account. The vote must be conducted in “executive session” and a permanent record of the vote must be maintained.
- Associations are required to send to each owner who has any outstanding balance a monthly statement (ledger) itemizing all charges imposed on the account. The requirement to send the monthly statement each and every month makes no exception for files referred to the association’s collection attorney. Accordingly, we believe it is essential that the statement (ledger) include an obvious disclaimer to the affect:
“BE ADVISED, YOUR FILE MAY HAVE BEEN REFERRED TO THE ASSOCIATION’S COLLECTION ATTORNEY. THEREFORE, THE BALANCE REFLECTED ON THIS LEDGER MAY NOT BE ACCURATE OR REFLECT LEGAL FEES WHICH YOU ARE OBLIGATED TO PAY. IN THIS CASE, YOU MUST CONTACT THE ASSOCIATION’S ATTORNEY TO OBTAIN A CURRENT ACCOUNT BALANCE.”
** This disclaimer is not a requirement of HB 22-1137**
The list above is not a complete list of new requirements imposed by HB 22-1137, but merely a highlight of those items which the association should immediately undertake. For a comprehensive discussion of HB 22-1137 or to update a collection policy, associations should consult their attorney.
