Texas Property Code 209.0064 – Third Party Collections
(a) In this section, “collection agent” means a debt collector, as defined by Section 803 of the federal Fair Debt Collection Practices Act (15 U.S.C. § 1692a).
(b) A property owners’ association may not hold an owner liable for fees of a collection agent retained by the association unless the association first provides written notice to the owner by certified mail that:
(1) specifies each delinquent amount and the total amount of the payment required to make the account current;
(2) if the association is subject to § 209.0062 or the association’s dedicatory instruments contain a requirement to offer a payment plan, describes the options the owner has to avoid having the account turned over to a collection agent, including information regarding availability of a payment plan through the association; and
(3) provides a period of at least 45 days for the owner to cure the delinquency before further collection action is taken.
Terms Used In Texas Property Code 209.0064
- Dependent: A person dependent for support upon another.
- Fair Debt Collection Practices Act: The Fair Debt Collection Practices Act is a set of United States statutes added as Title VIII of the Consumer Credit Protection Act. Its purpose is to ensure ethical practices in the collection of consumer debts and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information's accuracy. It is often used in conjunction with the Fair Credit Reporting Act. Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Property: means real and personal property. See Texas Government Code 311.005
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) An owner is not liable for fees of a collection agent retained by the property owners’ association if:
(1) the obligation for payment by the association to the association’s collection agent for fees or costs associated with a collection action is in any way dependent or contingent on amounts recovered; or
(2) the payment agreement between the association and the association’s collection agent does not require payment by the association of all fees to a collection agent for the action undertaken by the collection agent.
(d) The agreement between the property owners’ association and the association’s collection agent may not prohibit the owner from contacting the association board or the association’s managing agent regarding the owner’s delinquency.
(e) A property owners’ association may not sell or otherwise transfer any interest in the association’s accounts receivables for a purpose other than as collateral for a loan.