Texas Property Code §§ 209.0064 and 209.0065: HOA Collection Agent Fees and Credit Reporting

Quick Answer

Texas Property Code § 209.0064 limits when a property owners' association can pass the fees of a collection agent on to an owner. The association must first send a certified-mail notice that lists each delinquent amount, describes the owner's options (including a payment plan where one applies), and gives at least 45 days to cure. Section 209.0065 separately limits credit reporting: no reporting of amounts in a pending dispute, a detailed report of delinquent charges sent at least 30 business days earlier, an opportunity for a payment plan, and no fee charged to the owner for the reporting. Both sections took their current form from SB 1588, effective September 1, 2021.

At a Glance

What the Law Says

Section 209.0064: collection agent fees

Subsection (a) defines "collection agent" as "a debt collector, as defined by Section 803 of the federal Fair Debt Collection Practices Act (15 U.S.C. Section 1692a)."

Subsection (b) says an association "may not hold an owner liable for fees of a collection agent retained by the association unless the association first provides written notice to the owner by certified mail that":

• "specifies each delinquent amount and the total amount of the payment required to make the account current";
• if the association is subject to § 209.0062 or its dedicatory instruments require offering a payment plan, "describes the options the owner has to avoid having the account turned over to a collection agent, including information regarding availability of a payment plan through the association"; and
• "provides a period of at least 45 days for the owner to cure the delinquency before further collection action is taken."

Subsection (c) says an owner is not liable for collection agent fees if the association's payment obligation to the agent is "in any way dependent or contingent on amounts recovered," or if the agreement between the association and the agent "does not require payment by the association of all fees to a collection agent for the action undertaken."

Subsection (d) says the agreement with the collection agent "may not prohibit the owner from contacting the association board or the association's managing agent regarding the owner's delinquency." Subsection (e) says an association "may not sell or otherwise transfer any interest in the association's accounts receivables for a purpose other than as collateral for a loan."

Section 209.0065: credit reporting

Subsection (a): the association or its collection agent "may not report any delinquent fines, fees, or assessments to a credit reporting service that are the subject of a pending dispute between the owner and the property owners' association."

Subsection (b) allows the association to report the delinquent payment history of assessments, fines and fees "only if":

• "at least 30 business days before reporting to a credit reporting service, the association sends, via certified mail, hand delivery, electronic delivery, or by other delivery means acceptable between the parties, a detailed report of all delinquent charges owed"; and
• "a property owner has been given the opportunity to enter into a payment plan."

Subsection (c): the association "may not charge a fee to an individual property owner for the reporting."

What This Means in Practice

For boards and managers

The § 209.0064(b) notice is a gate. Our reading: if the notice is not sent, or is missing a required element, the association cannot pass the agent's fees to the owner, so the account should not be turned over until a compliant notice has gone out and the cure period has run. The statute ties the 45 days to "further collection action," so count from the date the notice is provided and keep the certified-mail receipt.

Check the collection agreement against subsection (c). A fee arrangement where the association pays only if money is recovered, or does not owe the agent for all of the work done, removes the owner's liability for those fees as the text is written. Also check that nothing in the agreement stops owners from calling the board or the manager (subsection (d)).

Before reporting to a credit service, confirm three things: no dispute is pending on the amounts being reported, a detailed report of all delinquent charges went out at least 30 business days earlier, and the owner has been offered a payment plan. Pair this with the notice rules in § 209.006, which also governs notice before reporting a delinquency.

For owners

A letter that gives no cure period, or gives fewer than 45 days, does not meet § 209.0064(b)(3). If you dispute an amount, § 209.0065(a) bars reporting that amount while the dispute is pending. The statute does not define "pending dispute," so put the dispute in writing and keep a copy. See § 209.0062 payment plan guidelines for what a plan may include.

What the sections do not say, and open questions

• Neither section says what happens to fees already paid to a collection agent without a proper notice. Our reading is that subsection (b) removes the owner's liability, but a refund process is not described. Confirm with counsel.
• "Pending dispute" is not defined in § 209.0065.
• The 30 business days in § 209.0065(b)(1) and the 45 days in § 209.0064(b)(3) are different clocks, counted in different units (business days and days). They are not stated to run together.
• The statute does not say whether an attorney who sends collection letters is a "collection agent." That depends on the federal definition cited in subsection (a). Confirm with counsel.
• Lien filing has its own notice sequence. See HB 886.

Timeline

Related Texas Law

• SB 1588: the 2021 omnibus bill that enacted § 209.0065
• § 209.0063: priority of payments
• § 209.0062: payment plan guidelines
• § 209.006: notice before enforcement action
• HB 886: two notices before an assessment lien
• §§ 209.009 and 209.0092: foreclosure limits
• § 209.017: justice court suits
• Chapter 209 overview
• Texas HOA laws complete guide

Board Checklist

• Send the § 209.0064(b) notice by certified mail before turning any account over to a collection agent.
• List each delinquent amount and the total needed to make the account current.
• Describe the owner's options, including the payment plan where § 209.0062 or the dedicatory instruments call for one.
• Give at least 45 days to cure and keep proof of the mailing date.
• Review the collection agreement for contingent-fee terms and any limit on owner contact with the board or manager.
• Before credit reporting, confirm no pending dispute, send the detailed delinquency report at least 30 business days ahead, and offer a payment plan.
• Never charge the owner a fee for the credit reporting itself.
• Do not sell or transfer receivables except as collateral for a loan.

Frequently Asked Questions

How long must a Texas HOA give me to cure before sending my account to collections?

The notice must provide "a period of at least 45 days for the owner to cure the delinquency before further collection action is taken" (§ 209.0064(b)(3)). Without that notice, the association may not hold the owner liable for collection agent fees.

How must the notice be sent?

By certified mail (§ 209.0064(b)). It must specify each delinquent amount and the total needed to make the account current.

Can the HOA's collection agent be paid only if it collects?

The association can make that deal, but under § 209.0064(c) the owner is not liable for the agent's fees if the association's payment obligation is "in any way dependent or contingent on amounts recovered."

Can an HOA report my delinquency to a credit bureau?

Only if it first sends a detailed report of all delinquent charges at least 30 business days before reporting and has given you the opportunity to enter a payment plan (§ 209.0065(b)). It may not report amounts that are the subject of a pending dispute (§ 209.0065(a)).

Can the HOA charge me for reporting to a credit service?

No. Section 209.0065(c) says the association "may not charge a fee to an individual property owner for the reporting."

Can the collection agent stop me from talking to the board?

No. The agreement between the association and the agent "may not prohibit the owner from contacting the association board or the association's managing agent regarding the owner's delinquency" (§ 209.0064(d)).

Does this apply to condominiums?

Chapter 209 does not apply to a condominium as defined by Section 81.002 or 82.003 (§ 209.003(d)). Condominium associations should review Chapter 82 and their governing documents.

Where This Comes From

We read the current text of §§ 209.0064 and 209.0065 as compiled in the 2025 Texas Statutes (Justia mirror of the Texas Property Code), including the session-law history notes, and the related collection sections for cross-references. The official statute site is at statutes.capitol.texas.gov. We did not re-read the enrolled text of SB 1588 for this page, so we do not describe what the 2021 amendment changed from earlier law.

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Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed Texas attorney before acting.