Doskocz v. ALS: HOA Payment-Plan Waivers Void (CA)

Quick Answer

In Doskocz v. ALS Lien Services, 102 Cal.App.5th 107 (2024), the First District Court of Appeal affirmed a ruling that a lien-services company hired by an HOA could not require a homeowner to waive Civil Code section 5655(a) in a payment plan. Section 5655(a) requires that a payment on a delinquent assessment go first to the assessment, and only then to late charges, collection costs and attorney's fees. Both the federal court and the state court treated a waiver of that protection as void because it conflicts with public policy. The opinion was certified for partial publication, so check which parts you cite.

What Happened

A homeowner sued ALS Lien Services, a company her HOA hired to collect delinquent assessments. She said ALS violated the federal Fair Debt Collection Practices Act and California's unfair competition law. The key issue was ALS's practice of having owners waive section 5655(a) when they signed payment plans, which let the company apply payments to its own fees before assessments.

Why the Waiver Failed

The courts reasoned that section 5655(a) exists to protect owners from foreclosure by making sure payments reduce the assessment debt promptly, which protects their equity. A waiver would undermine that purpose, so it could not be enforced. Section 5655 is part of the Davis-Stirling collection scheme; read it on the official California legislative site.

What This Means for Boards

• Review your collection agreements. Ask your management company and any collection vendor in writing whether payment plans include any waiver of section 5655.
• Apply payments in the statutory order. Assessments first, then collection costs, late charges and interest.
• Remember vendor risk. The association chose the collector, so a vendor's practice can become the association's problem.
• Update your collection policy and keep it consistent with the Act. See our guide to assessments and the plain-language Davis-Stirling guide.

How APM Helps

APM applies owner payments in the order the Act requires, uses written payment-plan templates reviewed by counsel, and keeps collection records. See our California resources or contact us.

Source: Doskocz v. ALS Lien Services (2024) 102 Cal.App.5th 107 (Cal. Ct. App., 1st Dist., Div. 1, No. A166299), as summarized by Adams Stirling PLC and Severson & Werson.

This article is general information, not legal advice. Court summaries are based on the published opinion and law-firm case summaries; read the opinion and consult your association's attorney before relying on it. Last verified October 24, 2026.