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Can a debt collecting agency add too the cost of the debt they buy from a client?
Can a debt collecting agency add to the cost of the debt they buy from a client?
All Debt Collection Questions & Advice
A debt collector is making threats to ruin my reputation, is this legal?
I recently started to receive threatening phone calls from a debt collection agency stating that they are going to ruin my reputation, is this an ille...Can a debt collecting agency add too the cost of the debt they buy from a client?
Can a debt collecting agency add to the cost of the debt they buy from a client?Can a debt collection agency commence bankruptcy proceedings against me?
Can a debt collection agency commence bankruptcy proceedings against me?Can a debt collector physically show up to your home to collect on a home equity mortgage?
Can a debt collector physically show up to your home to collect on a home equity mortgage?Can debt collectors come after your assets if your spouse incurred the debt before you were married?
Can debt collectors come after your assets if your spouse incurred the debt before you were married?How can I tell if an email from a debt collector is a scam or legitimate?
How can I tell if an email from a debt collector is a scam or legitimate?Is it legal for debt collectors to continue to call me and leave messages if I already filed for bankruptcy?
Is it legal for debt collectors to continue to call me and leave messages if I already filed for bankruptcy?They could send my wife and I to jail for not paying the debt?
We’re trying to work something out with the collections agency representing a hospital. We owe the hospital $60,000 for an uncovered stay, but can...What do I need to do if a collection company cannot validate a debt on record?
What do I need to do if a collection company cannot validate a debt on record?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.
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Posted by Jason Tong on 24 Jun 2010