Popular searches:
unsecured debt settlement negotiate debt mortgage debt settlement
Can a debt collecting agency add too the cost of the debt they buy from a client?
Talk to a Debt Relief Attorney
Get Help with Debt from an Attorney Near You
Select the type of Lawyer you need
Can a debt collecting agency add to the cost of the debt they buy from a client?
This site does not provide legal advice and users of this site should not interpret any of the information presented here as legal advice. The information provided merely conveys general information related to commonly asked legal questions. We are not a law firm and the employees responding to questions are not acting as your legal attorney. You should ultimately consult with a Lawyer for your case.
Answers
Under the Fair Debt Collection Practice Act, it is prohibited for debt collectors for collecting any amount unless it is expressly authorized by the agreement creating the debt. Any type of charges, interest, or fees that were included in the original contract of the loan can be used by the debt collector to add to the debt. These charges need to be expressly provided for in the contract that created the debt, and it needs to be allowed by law in the state this is occurring in. The state law may also permit the collection of “reasonable” fees as determined by each state’s laws regarding debt collection.
Talk to a Debt Settlement Lawyer for legal advice regarding your situation, and find out what options you have to settle the debt legally.
References:
Posted by Jason Tong on 24 Jun 2010
1 person found this useful
(1 Votes)Not sure where to start? Use this form to contact an experienced attorney. They will provide a free consultation and assist you with choosing the right path for your case.
Talk to a Lawyer
Describe Your Case
Tell us more about your case so that we can show you lawyers that serve your area.