Are on-site, employee managers exempt from debt-collection standards? Is an HOA liable if its employee or manager violates statutes?

The Federal and Colorado Fair-Debt-Collection-Practices Acts regulate third-party debt collectors, not individuals or businesses engaged in collecting debts owed to themselves. Generally, a manager acting as agent for, or an employee of an incorporated community association is not regulated by those Acts. Collection agencies and even law firms engaged in collecting debts for community associations are subject to the Acts and may be responsible to pay actual damages and monetary penalties for violations. Broader questions of "vicarious liability" of a corporation for employees' acts are fact-specific and subject to an extensive body of law.

Community Essentials - March 2004