Doskocz

I. BACKGROUND

A. ALS Collection from Doskocz

Doskocz owns a townhouse in Danville, California that is part of Danville Green Homeowners Association, Inc. (Danville Green). Danville Green hired ALS to collect unpaid HOA assessments from Doskocz. At the time of trial, ALS was working with approximately 100 HOAs throughout the state. ALS uses the nonjudicial foreclosure process to collect assessments and other charges. In November 2013, ALS sent Doskocz its standardized “pre- lien letter,” which stated that Doskocz was delinquent in the payment of assessments and owed Danville Green $1,239.08. It also stated that Doskocz could request a payment plan for the debt. The next month, ALS recorded a delinquent assessment lien against Doskocz’s townhouse.

2 Doskocz agreed to a payment plan. The plan included a waiver of Civil Code section 5655, subdivision (a) (section 5655(a)), 1 which requires payments “first be applied to the assessments owed, and, only after the assessments owed are paid in full shall the payments be applied to the fees and costs of collection, attorney’s fees, late charges, or interest.” ALS’s standard payment plan includes this waiver, and its standard collection…