Can a collection agency add fees on the debt?

When a creditor sells a past due debt to a collection agency, the collection agency becomes the owner of debt. They may add additional interest and fees to the balance as part of their collection efforts, so the collection amount may be greater than the original amount that was written off by your creditor.

Is it better to pay the original creditor Instead collection?

Working with the original creditor, rather than dealing with debt collectors, can be beneficial. Often, the original creditor will offer a more reasonable payment option, reduce the balance on your original loan or even stop interest from accruing on the loan balance altogether.

Are collection fees legal?

Under the FDCPA, collection agents may not engage in unfair practices when they try to collect a debt. One unfair practice listed in the FDCPA is trying to collect any interest, fee, or other charge on top of the amount you owe. In other words, collection agents cannot add anything extra to an account it is collecting.

Can a collection agency charge more than the original debt?

A collection agency may add additional interest and fees to the balance as part of their collection efforts, so the collection amount may be greater than the original amount that was written off by your creditor.

Can a debt collector add to your debt?

The collector would likely be permitted to add these costs to the original debt. If you find that a debt collector has charged you interest and fees that have greatly increased the total amount owed, you may need the help of an experienced and knowledgeable consumer lawyer to protect your interests and validate the amount.

Can you add attorney fees to a collection fee?

Clients often wonder if they can add our collection fees, or attorney fees, to the amount to be collected. These costs can only be added in specific situations. If there is a contract between the parties that indicates collection fees are due in the event of late payment, then collection fees can be included.

Can a debt collector charge interest outside of a credit agreement?

Any additional charges outside of the debt agreement must be permitted by Ohio law – otherwise, it is prohibited. Many credit agreements now specify how much debt collectors can tack on. For example, agreements might stipulate that interest continues to accrue on a debt even after it falls into debt collection.