Dues & Assessments

HOA Collections: Payment Plans, Late Fees and the FDCPA

By The HOARebel Team · October 14, 2026 · 16 min read

Statutes last fully checked against the official text in October 2026.

Not legal advice. This article is general information based on publicly available state law, which can change and varies by state. It is not legal advice and does not create an attorney-client relationship. Your community's governing documents may impose additional requirements. Verify the current statutes and consult a licensed attorney in your state about your specific situation.

Once an HOA account falls behind, the questions that matter are less about the stages of non-payment, covered in what happens if you stop paying HOA dues, and more about the money and the people involved: what the association can add to the balance, whether it has to offer a way to pay over time, and who is allowed to collect and under what limits. Those answers come from three layers: the state's HOA statute (where one exists), the community's own declaration, bylaws and collection policy, and, once an outside collector is involved, the federal Fair Debt Collection Practices Act (FDCPA). The state rules below are examples, not a national standard. For the lien and foreclosure side, see what an HOA lien is and whether an HOA can foreclose on your home. For your specific situation, a licensed attorney in your state is the right resource. This is general information, not legal advice.

Which states require an HOA to offer a payment plan?

Only some states require one. Texas requires an association with more than 14 lots to adopt payment-plan guidelines with a minimum three-month term (Tex. Prop. Code § 209.0062), and Colorado requires a good-faith effort to set up a plan with equal installments over at least 18 months (C.R.S. § 38-33.3-316.3). Many states have no such statute.

The states that do address payment plans take noticeably different approaches. A few examples:

Texas. A property owners' association composed of more than 14 lots "shall adopt reasonable guidelines to establish an alternative payment schedule by which an owner may make partial payments to the property owners' association for delinquent regular or special assessments or any other amount owed to the association without accruing additional monetary penalties" (§ 209.0062(a)). Reasonable costs of administering the plan and interest don't count as monetary penalties. The minimum term is three months, and the association isn't required to allow a plan that extends more than 18 months from the request, to offer one to an owner who defaulted on a previous plan within the past two years, to offer one after the cure period in § 209.0064(b)(3) has expired, or to allow more than one plan in any 12-month period (§ 209.0062(b)–(c)).
Colorado. In collecting past-due assessments, an association must "make a good-faith effort to coordinate with the unit owner to set up a payment plan," and the plan "must permit the unit owner to pay off the deficiency in equal installments over a period of at least eighteen months" (§ 38-33.3-316.3(1)(b), (2)). The section doesn't apply to a non-occupant owner who acquired the unit through a mortgage default or a foreclosure of the association's lien, and an association isn't obligated to negotiate a second plan with an owner who has already had one. An association may not foreclose its lien while the owner is in compliance with a required plan (§ 38-33.3-316.3(3.5)). Before a judicial foreclosure over assessments, Colorado also requires a written offer of an 18-month repayment plan in which the owner may choose the monthly amount, as long as each payment is at least $25 (C.R.S. § 38-33.3-209.5(7)(a)(II)).
California. The statute guarantees a meeting rather than a plan. An owner "may submit a written request to meet with the board to discuss a payment plan," and if the request is mailed within 15 days of the postmark of the association's pre-lien notice, the board (or, when no regularly scheduled board meeting falls in that period, a committee of one or more directors) must meet with the owner in executive session within 45 days of the request's postmark (Cal. Civ. Code § 5665). The section doesn't say the board must approve a plan. When one is agreed, "additional late fees shall not accrue during the payment plan period if the owner is in compliance with the terms of the payment plan," but a plan doesn't stop the association from recording a lien (§ 5665(c)–(d)).
Vermont. Under the Uniform Common Interest Ownership Act, a payment plan is a condition of foreclosure. An association may not begin an action to foreclose its lien unless the owner owes at least three months of common expense assessments "and the unit owner has failed to accept or comply with a payment plan offered by the association," and the board has voted to foreclose against that specific unit (27A V.S.A. § 3-116(m)).

Florida's HOA statute, chapter 720, is one state law without a payment-plan requirement. The closest provision lets an owner who has been sued to foreclose a lien, in some circumstances, file one "qualifying offer" to pay the full amount, which pauses the case for up to 60 days (Fla. Stat. § 720.3085(6)). Where state law is silent, whether a plan is offered generally turns on the declaration, the bylaws and the board's written collection policy.

How much can an HOA charge in late fees?

It depends on the state and the declaration. California caps a late charge at 10% of the delinquent assessment or $10, whichever is greater, plus interest of up to 12% a year (Cal. Civ. Code § 5650(b)). Colorado bars daily late fees and caps interest at 8% a year (C.R.S. § 38-33.3-209.5(1.7)(b), (8)(a)).

In these examples, the statute works as a ceiling and the declaration controls below it:

California. Assessments become delinquent 15 days after they are due unless the declaration allows longer. The association may then recover "a late charge not exceeding 10 percent of the delinquent assessment or ten dollars ($10), whichever is greater, unless the declaration specifies a late charge in a smaller amount," along with interest at "an annual interest rate not to exceed 12 percent, commencing 30 days after the assessment becomes due," or a lower rate if the declaration specifies one (§ 5650(b)(2)–(3)).
Colorado. An association "shall not impose" late fees on a daily basis (§ 38-33.3-209.5(1.7)(b)(I)), may not charge interest on unpaid assessments, fines or fees "in an amount greater than eight percent per year," and may not charge a fee for giving the owner a statement of the total amount owed (§ 38-33.3-209.5(8)(a)–(b)). Its written collection policy must list any late fees and interest the association may impose (§ 38-33.3-209.5(5)(a)(II)).
Florida. Late assessments bear interest at the rate in the declaration or bylaws, or 18% simple interest if none is set, and compound interest is not allowed. If the declaration or bylaws so provide, the association may also charge "an administrative late fee not to exceed the greater of $25 or 5 percent of the amount of each installment that is paid past the due date" (§ 720.3085(3), (3)(a)). The statute adds that a late fee "is not a fine" (§ 720.3085(3)(b)).
Georgia. In a community that has opted in to the Property Owners' Association Act, and to the extent its declaration provides, the owner's obligation and the lien can include "a late or delinquency charge not in excess of the greater of $10.00 or 10 percent of the amount of each assessment or installment thereof not paid when due," plus interest "at a rate not in excess of 10 percent per annum" (O.C.G.A. § 44-3-232(b)).

In a state without a statutory cap, the amount and timing of late fees come from the declaration and any rule the board has adopted under it. The overview of HOA fees and dues covers how late charges differ from fines.

Collection costs and attorney's fees

The statutes in these examples let an association pass reasonable collection costs and attorney's fees on to the owner, and most attach notice requirements first:

Florida. A claim of lien secures unpaid assessments "as well as interest, late charges, and reasonable costs and attorney fees incurred by the association incident to the collection process" (§ 720.3085(1)(a)). But an association "may not require payment of attorney fees related to a past due assessment without first delivering a written notice of late assessment" that gives the owner an opportunity to pay without attorney fees; the statutory form allows 30 days (§ 720.3085(3)(d)). Payments are applied first to interest, then to late fees, then to collection costs and attorney fees, and only then to the delinquent assessment (§ 720.3085(3)(b)).
Texas. An association may not hold an owner liable for the fees of a collection agent unless it first sends a certified-mail notice that itemizes the delinquency, describes the payment-plan option where one is required, and gives at least 45 days to cure (Tex. Prop. Code § 209.0064(b)). The owner isn't liable for a collection agent's fees if those fees are contingent on the amount recovered (§ 209.0064(c)). Texas defines "collection agent" by reference to the federal definition of a debt collector in 15 U.S.C. § 1692a (§ 209.0064(a)). Attorney's fees separately require written notice that fees will be charged if the delinquency continues after a date certain, and on written request the association must provide copies of the invoices (§ 209.008(a), (d)).
Colorado. A delinquent account may be referred to a collection agency or attorney "only if a majority of the executive board votes to refer the matter in a recorded vote" (§ 38-33.3-209.5(1.7)(a)(II)). Before the referral, the association must send a certified-mail notice of delinquency with an accounting of the total, whether a payment plan is available, and the name of a person from whom the owner can get a copy of the ledger, which must be provided within seven business days of the request (§ 38-33.3-209.5(5)(a)(V)).
California. The association may recover "reasonable costs incurred in collecting the delinquent assessment, including reasonable attorney's fees" (§ 5650(b)(1)), and at least 30 days before recording a lien it must send an itemized statement of the charges, including collection costs and attorney's fees (Cal. Civ. Code § 5660(b)).
Georgia. For opted-in communities, the lien includes costs of collection, including "reasonable attorney's fees actually incurred" (§ 44-3-232(b)). SB 406 added a separate rule, codified at § 44-3-235(d) and applicable to actions filed on or after July 1, 2026: outside emergencies, before an association may collect or be awarded attorney's fees, it must send a certified-mail or statutory-overnight notice "identifying any outstanding fines or delinquent fees," give the owner 30 days from receipt to pay them, and provide "an itemized list of reasonable attorney's fees claimed." In a bench trial, the judge must also rule on whether the fees claimed were reasonable before awarding them (§ 44-3-235(e)).

Federal law adds a layer when an outside collector is involved. If the FDCPA covers the collector, collecting "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" is an unfair practice (15 U.S.C. § 1692f(1)). For an HOA balance, the governing documents and state statute are what authorize or limit those add-on charges.

Does the FDCPA apply to HOA debt collection?

It can, depending on who is collecting. The association collecting its own assessments is generally the "creditor" under 15 U.S.C. § 1692a(4); the Act's rules mainly govern "debt collectors," which § 1692a(6) defines to include anyone who "regularly collects or attempts to collect" debts owed to another, so an outside agency or law firm may be covered.

Three definitions in § 1692a decide most of this:

Creditor. A creditor is "any person who offers or extends credit creating a debt or to whom a debt is owed" (§ 1692a(4)). An association collecting its own assessments in its own name fits there, and the definition of debt collector excludes "any officer or employee of a creditor while, in the name of the creditor, collecting debts for such creditor" (§ 1692a(6)(A)). One exception runs the other way: a creditor that uses "any name other than his own which would indicate that a third person is collecting" is treated as a debt collector (§ 1692a(6)).
Debt collector. The definition reaches any person whose principal business purpose is collecting debts, or who regularly collects debts "owed or due or asserted to be owed or due another" (§ 1692a(6)). There is no exclusion for attorneys: a 1986 amendment struck the former exception for an attorney collecting a debt for a client, as the official notes to § 1692a record. Whether a particular management company or law firm is covered can depend on the facts, including the exclusions in § 1692a(6)(F), one of which covers a debt that "was not in default at the time it was obtained" by the person collecting it.
Debt. The Act covers an obligation "arising out of a transaction in which the money, property, insurance, or services which are the subject of the transaction are primarily for personal, family, or household purposes" (§ 1692a(5)). The statute doesn't mention HOA assessments by name, so whether a given balance fits can depend on the facts, such as how the property is used.

The same definitions appear in Regulation F, the Consumer Financial Protection Bureau's FDCPA rule (12 C.F.R. § 1006.2). State debt-collection laws may also apply alongside the FDCPA, and some HOA statutes tie their own rules to it, as Texas does in § 209.0064. Whether a specific collector and a specific balance are covered is a question for a licensed attorney in your state.

Can I dispute an HOA debt with a collector?

If the collector is covered by the FDCPA, a written dispute within the 30-day validation period may be available. Under 15 U.S.C. § 1692g(b), the collector must then stop collecting the debt, or the disputed portion, until it mails the owner verification of the debt or a copy of a judgment.

Within five days after its first communication about the debt, a covered collector must send a written notice, unless that information was in the first communication or the debt has been paid, with the amount of the debt, the name of the creditor, and statements explaining the 30-day dispute window (§ 1692g(a)). Regulation F fills in the details. The validation notice must include an itemization of the current amount "reflecting interest, fees, payments, and credits since the itemization date," which for an HOA balance is where added late fees and collection charges show up, and the date the collector will treat as the end of the validation period (12 C.F.R. § 1006.34(c)). That period ends 30 days after the consumer receives the information, and the collector may assume receipt five business days after sending it (§ 1006.34(b)(5)).

Two other points in § 1692g are worth knowing. Not disputing a debt "may not be construed by any court as an admission of liability" (§ 1692g(c)). And collection activity during the 30 days "may not overshadow or be inconsistent with" the disclosure of the right to dispute (§ 1692g(b)). Separately, if a consumer notifies a collector in writing that the consumer refuses to pay or wants communication to stop, the collector generally must stop communicating, apart from limited notices such as one that the collector or creditor may invoke specified remedies (15 U.S.C. § 1692c(c)). That limits contact; it doesn't erase the debt or the lien.

State HOA statutes can add their own dispute routes that apply whether or not a collector is involved. California's pre-lien notice must tell the owner of the right to dispute the debt through the association's "meet and confer" program (§ 5660(e)). Colorado requires the ledger copy described above (§ 38-33.3-209.5(5)(a)(V)(C)). Texas bars an association or its collection agent from reporting amounts that are the subject of a pending dispute to a credit reporting service (Tex. Prop. Code § 209.0065(a)).

Where state law and the FDCPA are silent

Much of HOA collection isn't covered by any statute. In states without payment-plan or late-fee rules, and for an association collecting its own account without an outside collector, the main limits come from the governing documents: the declaration's assessment and late-charge provisions, the bylaws, and any written collection policy the board has adopted. Some states require such a policy (Colorado does in § 38-33.3-209.5(1)(b)(I) and (5)(a)), and where none is required, an association may still have adopted one. The guide to bylaws, CC&Rs and rules explains how those documents fit together.

Owners questioning a late fee or a collection charge commonly compare the itemized ledger against what the declaration and any state statute allow, check the dates the charges were applied, and ask the association in writing for the policy it relied on. Whether any remedy is available depends on the documents, the state and the facts.

Frequently asked questions

What is the 7-7-7 rule for debt collectors?

It's an informal name for Regulation F's call-frequency presumption. A covered debt collector is presumed to comply with the limit on repeated calls if it doesn't call a particular person about a particular debt "more than seven times within seven consecutive days," or within seven consecutive days after having a telephone conversation with that person about the debt (12 C.F.R. § 1006.14(b)(2)). Going over either limit creates a presumption of a violation. Some calls don't count, such as calls the person consented to and calls that don't connect (§ 1006.14(b)(3)). The rule applies only to debt collectors covered by the FDCPA, not to an association calling about its own account in its own name.

Can an HOA debt collector contact my neighbors or employer?

Generally not about the debt. Without the consumer's consent, a court's permission, or a need tied to a postjudgment remedy, a covered debt collector "may not communicate, in connection with the collection of any debt, with any person other than the consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector" (15 U.S.C. § 1692c(b)). The exception is a limited contact to obtain location information, in which the collector may not state that the consumer owes any debt (§ 1692b). A collector also may not contact a consumer at work if it knows or has reason to know the employer prohibits it (§ 1692c(a)(3)), and Regulation F bars a collector from publishing a list of consumers who allegedly refuse to pay debts, other than to a consumer reporting agency (12 C.F.R. § 1006.14(e)).

Can a collector report my HOA balance to credit bureaus?

A covered debt collector can, but Regulation F sets a precondition. The collector "must not furnish to a consumer reporting agency" information about a debt before it either speaks to the consumer about the debt in person or by phone, or mails a letter or sends an electronic message about the debt and waits a reasonable period for a notice that it couldn't be delivered (12 C.F.R. § 1006.30(a)). State law can add limits. In Texas, for example, an association may report delinquent amounts only after sending a detailed report at least 30 business days in advance and giving the owner the opportunity to enter into a payment plan, and it may not report amounts under a pending dispute (Tex. Prop. Code § 209.0065).

Where can an HOA debt collector sue me?

It depends on the kind of case. A covered debt collector bringing "an action to enforce an interest in real property securing the consumer's obligation," such as a lien foreclosure, must file only in the judicial district where the property is located (15 U.S.C. § 1692i(a)(1)). Any other suit on the debt must be filed where the consumer signed the contract sued on or where the consumer lives when the case begins (§ 1692i(a)(2)). Regulation F repeats the same venue rule (12 C.F.R. § 1006.30(d)). The Act "shall not be construed to authorize the bringing of legal actions by debt collectors" (§ 1692i(b)); whether a suit can be brought at all turns on state law and the governing documents.

Sources

Keep reading

The rules above are the general picture; the details come from state law. Every state's article on this question is listed on HOA fees & dues by state, and each state guide explains the governing statute.