Can a debt be transferred to a collection agency without warning?

I received a bill from my HOA last week stating the balance due of $285, $200 of which was delinquent because I did not get any bills from them. The due date is the last day of this month. Then 3 days later with the full payment already mailed out, I received a lawyer’s letter saying that I was in default and wanted $485; $285 were lawyer fees.

Asked on October 11, 2011 under Bankruptcy Law, Arizona


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Yes, in many situations a creditor will assing his or her claims for an obligation owed to a debt collection company without any notice to the debtor. This apparently happened in your situation.

Since you have made the full payment before you received notice of the increase in the amount owed you should write the homeowner's association about the situation stating that the obligation has been paid in full while keeping a copy of the letter for future reference.

You also need to carefully review all documents concerning your dispute with your homeowner's association for a basis as to the claim for attorneys fees. Most likely there is no legal basis for such fees.

Good luck.

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