Legal Question in Credit and Debt Law in Virginia
All "Fee Property Managers" governed by FCRA or are they exempt?"
In publications and recent legal seminars, I have been given to understand that fee property managers - agents for property owners * NOT PROPERTY OWNERS THEMSELVES* are governed by amended FCRA in that any communication with tenants regarding collection of funds, including 3-Day (5-Day) Notice to Pay or Quit for eviction must have wording to effect that Debtor/Tenant must contest in 30 days. There was NY case late in '97 which in on appeal in NY and Institute of Real Estate Management outside council says managers are exempt as agents of property owners and are not debt collectors and subject to FCRA rules.
1 Answer from Attorneys
Re: All
It's not the Fair Credit Reporting Act that you are concerned about; it's the Fair Debt Collections Practices Act. And yes, you heard right about the NY case, which is, in my opinion, properly decided based on the text of the law, but shows how absurd the law can be in certain circumstances. It is arguable that the property owner's agent can get around the law by not demanding payment, just possession (so it's not about a debt), but I don't think there is any judicial opinion support for this position yet. The case is also not necessarily going to be followed in other courts. In any event, if you are a property manager, you may want to consult with counsel to make as certain as possible that you are in compliance with the Act.
Daniel Press
Chung & Press, P.C.
6723 Whittier Ave., Suite 302
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