Does a PREDATORY HOA collections company have your association in an abusive relationship?


Ask yourself the following:

Is our collections company the defendant in multiple lawsuits?

Do they have "out of control" fee structures for delinquent homeowners?

Do their contracts have clauses leaving YOUR association on the hook for fees!?

Avoid Predatory HOA Collections Company

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Predatory Collections Companies Can have HOA's feeling Trapped.
Predatory Collections Companies Can have HOA's feeling Trapped.

Predatory HOA Collection Tactics

Collections of delinquent assessments in community associations are always a troublesome issue. Board members feel pressured to collect anything as quickly as possible, and homeowners often feel like they have no alternatives but to be made homeless or bankrupt. That’s because the traditional way to collect has always been to hand off the file to an attorney, let them file a lien, and eventually foreclose.

Unfortunately, while direct-to-foreclosure is the most common high-risk collection practice used today, it certainly isn’t the only one.

It’s essential to remember that "legal" does not always mean "ethical." Complying with the FDCPA is a requirement, not a stamp of success or fairness. Many HOA collections companies are focused on generating revenue, nothing more. Keeping an owner in collections can prove lucrative, despite being extremely unethical for these disreputable collection companies. But these tactics don’t always look abusive or predatory at first blush.

These companies might try to convince you that it’s standard to charge monthly fees for outreach and communication (a flat-out lie) or that foundational collections tasks like skip tracing and arranging payment plans warrant additional charges (another fabrication). These fibs are designed to bully you into thinking that all collection efforts are costly. Don’t fall into their trap! Learn to spot these big warning signs.

Spotting The Signs

Sometimes the signs aren't obvious.
Sometimes the signs aren't obvious.

This is surprisingly easy to find, but these companies know how to sweep that lousy press under the rug. Because in many cases, these predatory HOA collections companies have dozens of settled cases where the judicial ruling is in their favor. But all this means is that the company has much experience being sued–not a good sign. And if you look at court documents where judicial rulings favored them, many names not only the collections company as the defendant but also the community association. This makes engaging with these kinds of companies a massive risk. Every lawsuit, even those that are settled or won, is costly and damaging to a community. And if the ruling does favor the homeowner, the cost to the community can be staggering.

Every collections company wants to get paid at the end of the day (yes, even us). The difference is how they make that money and the amount of profit they’re standing to clear. Burying delinquent owners in extra fees is a common tactic predatory HOA collections companies use to inflate their profit margins. If you’re considering or already working with a company that tacks on late fines or interest fees so significant that they are likely to match or surpass the past-due principal, run. Collections fees should only ever total a small percentage of the total balance; they should not force delinquent homeowners deeper into a desperate situation.

This is their most enormous red flag and speaks to the fact that their business model cares only about their bottom line. These companies aren’t interested in recovery, let alone in making a community association whole. Their entire business model is designed to drive profit, win, lose, or draw, so they aren’t concerned with which outcome they get. And if they can increase the odds of guaranteed profit by shifting those outrageous fee structures onto the association, if you decide their services are cutting it, they’ll do that, too. This kind of contract forces the association into a hostage situation where the only one who wins is the collections company.

...And The Red Flags

firms that charge any recurring, monthly fee for "monitoring" or "outreach." This is the easiest way for collection fees to balloon out of control. 

Be wary of a fee structure incentivizing the service provider to let a file drag on. A monthly fee is the most obvious example. It allows the costs to balloon and increase without requiring additional work or effort. 

90% of what collection companies are hired to do is outreach and engagement, so this is not something that should be "itemized." This includes charging for call center access, repeated phone calls, etc. 

Skip tracing should be a standard proactive for any collection company and costs the collection company next to nothing in terms of time and money (it takes ~30 seconds and about $0.05 to run a skip trace). 

Anybody who requests a payment plan has trouble meeting their immediate financial obligations. Why would you add insult to injury by charging unnecessary fees to someone making a good-faith effort to get back on track?

Plus, any modern collection company worth its salt should be able to automate this process. 

Companies that require exclusive contracts with strict termination clauses make the association liable for all the excessive fees mentioned above. In this arrangement, the collection company knows it will get paid, win-lose, or draw and has the mentality of "in that case, let's rack up as many fees as possible." 

This is the enormous red flag of them all!

Companies live and breathe based on their reputation. Many of these Predatory Collections companies don’t have a positive standing with their current or former clients and refuse to list them as references. Always ask for a list of references when choosing to work with a collections company; if they only furnish 1 or 2 options, that doesn’t cut it!

Here are some Red Flags to look out for!
Here are some Red Flags to look out for!

Next-Generation Technology

Proprietary technology & tools that allow you to stay informed at every stage of the collections process, providing valuable insight and complete transparency.

Culture of Caring

Debtors are people and deserve to be treated ethically and with compassion. We ensure a proper process that treats delinquent owners as people with respect and fairness, not as paychecks.

Speedy Recovery

Our average recovery time is 67 days. Compare that to a lien judgment where you then have to try to rent out the unit and collect rental fees!

Full Transparency

We provide you with easy-to-understand monthly reports. You'll have access to your customer portal 24/7, so you can instantly check the status of any account.

24 reviews on
john hooper
john hooper
Our experience has been great; from the initial introduction from Mitch to our account manager Jordan. Everyone is very professional, responsive and very knowledgable. This attention is match by their online portal which provides us with a detailed look at every action taking by the collection staff including the results of every interaction with our HOA members. Very impressive.
Cindy Bingham
Cindy Bingham
Axela is a great company to be associated with. Due to my lack of not reviewing important information on our contract, I had some upset homeowners. I contacted Mitchell and he helped me right away to rectify the situation and offer support that they did not have to give due to my mistake. I will definitely continue working with them!
Myrna Hernandez
Myrna Hernandez
Thank You, Axela Technologies. You have been the best decision that I have made in hiring this company, your customer service has been top notch and your knowledge and the way you explain how you work makes me feel so secure and happy that I have made the right decision. Thank you so much and I 120% recommend this company trust me you will not regret. MHPM, Corp
Abhishek Singh
Abhishek Singh
Nice sir.. 😊
Fabio S. Ades
Fabio S. Ades
We have been working with Axela for a few years, and they have collected every cent that we have asked them to collect. The best part is that our community associations did not have to spend a penny in attorney or collection costs which makes my boards of directors very pleased with the services we provide. You can't buy loyalty, but you can earn it if you have the right solutions. Great job Axela. Fabio Setton PMI Top Florida Properties
Jevarus Howard
Jevarus Howard
We literally wouldn't know where to start without this group. They have streamlined our HOA/COA collections so well and we can depend on them to get the job done. Our communities love them and its a pleasure to let communities know we work with the experts at Axela to get things done! Thanks, PMI Upstate SC - Greenville SC
Alisher and the whole team at Axela are a pleasure to work with. Knowledgeable about all things collections for HOA/POAs. When I have a question, someone always answers that day or the next. They have done an excellent job of collecting back assessments and are less expensive for our property owners than other services we have tried. Highly recommend them.
Rebekah Romero
Rebekah Romero
Axela should be the industry standard of how collection firms should operate and conduct business. Not only are they responsive, reliable and a helpful company they also allow management companies, Boards and owners to have a very transparent transaction that eliminates the emotional aspect when sending owners into collections for being past due because of their automated systems and client portal that is available to owners, Boards and management. Thank you for allowing us to help our Associations collect funds owed to them. Hands down Axela is breaking old school processes in the HOA industry and we are pleased to have a great partnership with Axela.
Kevin Lehman
Kevin Lehman
Alisher Sabirov and his full team at Axela are fantastic! Our Management company recently transitioned from another company and are so grateful to have such a great partnership. They helped several our communities significantly reduced their delinquencies. I highly recommend them to any company that wants a company that excels, embraces technology, and is just fun to chat with. Thank you!

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Think Your HOA is Involved With A Predatory Collections Company?


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How to improce HOA delinquencies

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Download our How to Reduce Your Condo/HOA Delinquency Rate [ebook]

Unlike a predatory HOA collections company would have you believe, there is no magic bullet to reduce delinquency rates. But some techniques work. For over 20 years, our team has been building solutions to help communities reduce or eliminate bad debt, encourage homeowners to pay on time, and help communities recover delinquent funds.