ComplaintsforJenkins Bagley Sperry, PLLC

• Initial Complaint

  03/19/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  On January 29th I received a certified letter from the law firm Jenkins Bagley Sperry notifying me that as of January 1st I was 3 months past due on my HOA fees and I owed $545 with late fees included. On top of that they were charging me almost $700 for their fees to collect this debt. I was confused because I have owned this property for 15 years and have always been on time paying my fees as well as at one point even having a surplus of $1000 on my account for over paying. Upon receiving this notice, which was the first notice I had received, I immediately paid the $545 owed as well as reinstated auto pay for any future payments. After only 2 more emails with this law firm discussing the matters of their fees and how they justified charging almost $700, they notified me that they were now increasing the amount I owed them by $346 because of this additional email sent to me and would continue to increase the amount if I further contacted them regarding the amount owed. Today, March 18th, I received a new letter from them notifying me that not only have they increased the amount I initially owed them to $1675.86, they also now have placed a lien on my property despite my payments towards my account bringing my account current with my Home owners association.

  Business response

  03/25/2024

  March 25, 2024
  
  Better Business Bureau
  **** ** **** **
  Salt Lake City, UT 84129
  *****************
  
              Re:       Response to Complaint ID ********
  
  To Whom It May Concern:
  
              Thank you for bringing this matter to our attention. We are pleased to respond to the complaint that was submitted on March 18, 2024, with an ID of ********.
  
              On January 9, 2024, a Homeowners Association (the “Association”) which I and the law firm of Jenkins Bagley Sperry, PLLC (the “Firm”) represent, assigned this collection account to our office for the purpose of collecting delinquent assessments owed by the homeowner to the Association. The Association was owed $545.00 as of the date of assignment of the account to our Firm, which amount consisted of assessments and late fees incurred between September 1, 2023 and January 1, 2024.
  
              On January 23, 2024, our office sent to the homeowner, via regular and certified mail, a letter regarding the delinquent assessments (the “Pre-Lien Letter” attached as Exhibit A). The attorneys’ fees and costs incurred in creating the file, performing research of the property and homeowner, studying the Association’s governing documents, and drafting the Pre-Lien Letter and FDCPA validation notice totaled $546.80 as of the date said letter was sent. The Pre-Lien Letter included the assessment balance as of January 1, 2024, plus a $10.00 late fee that was incurred on January 15, 2024, and the attorneys’ fees for a total outstanding balance of $1,101.80. The Pre-Lien Letter provided a deadline of 30 days to pay the outstanding balance and informed the homeowner that failure to bring the account current within 30 days would result in a lien being recorded against the property at a significant increase in legal fees and costs.
  
              On January 29, 2024, at 3:26 pm, our office received an email from the homeowner in response to our January 23rd Pre-Lien Letter whereby the owner requested we verify with our client the accuracy of the amounts owing. Attached to the homeowner’s email was an account statement dated January 1, 2023 with a credit balance of $985.00. That is, as of January 1, 2023, a year prior, the homeowner was ahead, not behind, on assessment payments.
  
              On January 29, 2024, at 4:27 pm, our office responded to the homeowner’s email and included an account statement which included a full account history from April 1, 2016 through January 1, 2024. It was pointed out that this statement also reflected a $985.00 credit balance as of January 1, 2023, and that the delinquency began to accrue as of September of 2023. An updated payoff amount of $1,246.81, which was good through February 22, 2024, was also provided in that email response. (A copy of the email correspondence is attached as Exhibit B). The February 2024 assessment and late fee were also included in the provided payoff amount and the attorneys’ fees incurred for the time it took to respond to the homeowner’s email were waived as a courtesy, as an effort to resolve the matter.
  
              On January 29, 2024, at 6:10 pm, we received the following email response from the homeowner: “Why have I not received any notices that I was in default? This is the first notice I am seeing. I will pay the original amount owed plus late fees but I am not going to pay attorney fees for collections when I was not given proper notice of late payment.”
  
              On February 5, 2024 at 4:02 pm, our office sent the following email response to the homeowner, and the attorneys’ fees incurred for the time spent doing so were, once again, waived as a courtesy and as an effort to resolve the matter:
  
  “Thank you for your email and expressing your concerns. I did want to mention that the homeowner is put on their notice and obligation to pay assessments through the governing documents when they take ownership of the property. This is agreed to by the acceptance of the Deed. With that, the Association is not obligated to send notice of your delinquency, and if they do it is out of a courtesy.
  
  Additionally, below please find Article 6 section 9 of your Associations CC&R's.
  
  6.9 Personal Obligation and Costs of Collection. Assessments imposed under this Declaration, together with late charges and interest at a rate to be established by the Board, not to exceed the maximum permitted by law, and costs and reasonable attorneys' fees incurred or expended by the Association in the collection thereof (whether or not a lawsuit is initiated), shall also be the personal obligation of the Owner holding title to any Unit at the time when the assessment became due.
  
  Although I have spent additional time corresponding with you, I have waived the costs for my time spent on this correspondence and will honor the previously provided payoff quote of $1,246.81 provided to you on January 29, 2024. If any additional time is necessary, it will be billed and added to your account balance.”
  
              On February 5, 2024, at 3:23 pm, we received the following email response:
  
  “Well Utah code states:
  
  The creditor shall establish the amount of the collection fee imposed under this Subsection (2), except that the amount may not exceed the lesser of:
  (i)    the actual amount a creditor is required to pay a third party debt collection agency or licensed attorney, regardless of whether that amount is a specific dollar amount or a percentage of the principal amount owed to the creditor for a debt; or
  (ii)   40% of the principal amount owed to the creditor for a debt.
  
  So how is it legal that you charge a fee of more than 98%?”
  
              On February 6, 2024, at 4:52 pm, we responded to the email with the following:
  
  “Attached please find Utah Code § 12-1-11 in its entirety and note that § 12-1-11(2)(c) states that "an obligation to pay a collection fee imposed under this Subsection (2) is in addition to any obligation to pay attorney fees that may otherwise exist." Our firm does not charge a collection fee and pursuant to the Association's CC&Rs, owners are obligated to pay attorneys' fees and costs incurred for the collection of delinquent assessments.
  
  I hope this is sufficient information to answer your question. Please be aware that we are a fee-based firm and collect on an hourly rate charge and all time spent in efforts to collect, including all correspondence with you, is billed and added to your balance. Therefore, the previously provided payoff amount is now inaccurate. The updated payoff amount through today's date is $1,592.81 and if no additional collection efforts are required, is good through February 22, 2024.”
  
              As a result of time spent studying Utah Code and responding to the homeowner, $175.00 in attorneys’ fees were incurred. Also included in the payoff amount provided to the homeowner was the March 2024 assessment and a $36.00 electronic service fee that would be automatically charged against the file before the February 22, 2024 deadline.
  
              On February 6, 2024, at 5:35 pm, we received the following email:
  
  “But I’ve already paid the full amount to the HOA’s including the late fees.
  
  Good luck. I promise you this will not hold up in court. Especially Utah.”
  
              On or about February 9, 2024, the Association forwarded to us a partial payment in the amount of $375.00. Then on or about February 14, 2024, the Association forwarded to us another partial payment in the amount of $550.00.
  
              On or about February 16, 2024, the partial payments were credited to the outstanding balance; however, they were not sufficient to satisfy the full amount owed. Pursuant to the collection policy in place with the Association, $462.50 of these payments were applied towards attorneys’ fees and costs of collection. As a result, additional attorneys’ fees and costs in the amount of $94.14 were added to the account for the time it took our office to deposit the funds, cut a check to the Association, account for fees and costs owed to our Firm and to review and update the account.
  
              Because the account was not paid in full by the deadline, a Notice of Lien was recorded against the property and a copy of the notice and a demand letter was sent to the homeowner via regular and certified mail on March 13, 2024. As a result, additional attorneys’ fees and costs in the amount of $857.75 were added to the balance. (A copy of such letter and lien are attached as Exhibit C).
  
              Moreover, Section 6.8 of the Association’s CC&Rs provides for recovery of attorneys’ fees for collection of assessments whether or not legal action is instituted.
  
              To settle this matter at a discount, by Friday, April 5, 2024, the homeowner can pay, via certified funds, $1,820.60, which includes the April assessment and all assessments, attorneys’ fees and costs accrued prior to responding to this complaint.
  
  
  Sincerely,
  Jenkins Bagley Sperry, PLLC     
  Bruce *. J******, Esq
  

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