In West Virginia, homeowners associations (HOAs) now need to worry about how they go about collecting delinquent fees. If HOA debt collection efforts do not comply with the West Virginia Consumer Credit and Protection Act (the WVCCPA), an HOA could face a civil suit and steep penalties. The Supreme Court of Appeals in West Virginia recently examined HOA collection of delinquent association fees in Fleet v. Webber Spring Owners Association, Inc., No. 14-0637 (January 2015).

The first issue raised in the appeal was whether the Association had the right to place a common law lien against real property as part of its efforts to collect delinquent fees.Unlike the lien issue, the second issue addressed by the Court creates a number of issues that may pose significant liability for any HOA attempting to collect delinquent fees.  In particular, the Court concluded that HOAs attempting to collect delinquent fees are “debt collectors” as that phrase is defined under the WVCCPA.     Read the article