Limits on pursuing delinquent condo owners
Q. Are there any restrictions on a management company or board on performing ongoing collection activity on a delinquent unit owner’s account? If the unit owner is in bankruptcy, does this have any affect on collection activity?
A. While a board of directors must be diligent in pursing delinquent accounts, restrictions on the means of communication are governed by the federal Fair Debt Collection Practices Act and the Illinois Code of Civil Procedure.
Federal law requires that delinquency notices comply with certain requirements, including an explanation of the calculation of the delinquent amount. The demand for possession required by Illinois law states that an owner must be given 30 days to pay the delinquency.
The proper format of a delinquency assessment notice is to state the amount of the claim, including legal fees, by attaching an account ledger with an itemization of all charges.