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Credit Reporting Services

The board’s role is to enhance and protect your community, and you can’t fulfill that role without on-time membership fees. But too often, fees arrive late—and when they do, members are either faced with a lack of consequences or severe measures that jeopardize neighborhood cohesion. Traditional collection methods require time and energy that you can better spend elsewhere.

We offer a much better way.

To protect the board’s efficiency and ensure a thriving neighborhood, we offer credit reporting services. This equips you with a proactive way to prevent HOA fee delinquencies, optimize cash flow, and maintain a high-quality community with healthy market values. 

Credit reporting gives you an additional option beyond traditional collection methods, one that can reduce legal collections fees and preserve community relationships. Plus, the modest amount you’ll pay for this service will be offset by the fees you collect on late accounts.

The Benefits of Credit Reporting for HOAs and Condo Associations

Credit reporting is nothing new for credit card companies, banks, and other lenders. Homeowners’ and condominium associations now recognize the importance of credit reporting to their operations as well. This system rewards residents for on-time fees and educates everyone on the consequences of delinquent accounts.

When you use our credit reporting services, you can alert the three major credit reporting companies (Equifax, Experian, and TransUnion) when an individual has paid or failed to pay a bill. This information is then reflected in the individual’s credit score. This offers benefits on the individual and community level:

  • Rewarding Property Owners: All owners have a greater incentive to make on-time payments, and those who do can increase their credit scores, offering a ripple effect of positive benefits.
  • Greater Community Cohesion: We’ve found that increased accountability within communities instills a fair system that creates greater trust and cohesion between residents.
  • Simplified Board Operations: Boards can avoid the hassle of late fees, delinquent accounts, and property owner disputes.

The Federal and State Fair Credit Reporting Acts (FCRA) allows all associations to report payment histories. Association assessments are classified as revolving debt payments, much like a credit card or auto loan. Associations have the legal authority to refer delinquent accounts to collection agencies, and to report positive and negative payment histories to assist in debt collection.

When Should a HOA or COA Use Credit Reporting?

We recommend using credit reports from the beginning. Don’t wait until residents fall months behind on their dues; that undermines the board’s work and underfunds your community. When you offer a consistent approach with consistent consequences, adherence to rules improves. When property owners realize that late payments can impact their credit scores up to seven years, they more fully understand the importance of your association’s deadlines. And when they see their credit scores improving because of their association dues, they’ll have a new appreciation for their involvement. This signals to your community that everyone has equal responsibility for supporting the association.

Collect Fees While Preserving Community Cohesion

To understand the benefits of credit reporting, it helps to compare it to the conventional approach for unpaid dues—placing a lien on an individual’s property. Executing a lien is a reactive strategy that places increased strain on your resources and alienates homeowners.

Credit reporting, on the other hand, is a proactive strategy that doesn’t rely on punitive measures: It offers rewards for compliant owners as much as a consequence to noncompliant ones. When you employ credit reporting services, you can reserve formal actions—such as liens and foreclosures—for follow-up measures, rather than your first line of defense. This can save you a substantial amount of time and legal costs.

Giving You a Hands-Off Approach

At Community Association Management, we streamline and automate your credit reporting process. We automatically reformat your residents’ payment histories to prepare them for delivery to the credit bureaus. If any property owner disputes occur, Community Association Management facilitates them. This gives you a hands-off approach and relieves your board of management hassles and unnecessary tension.

The process is simple and secure. Our team is always ready to help.

Begin Credit Reporting Services Today

Are you ready to end the era of late fees and homeowner payment disputes? We offer this service exclusively to our clients, and we’re happy to offer them a consultation about the benefits of using cost-effective credit reporting services. 

Download the brochure today to learn more.

Don’t wait for delinquencies to pile up …

Secure the health of your association today!