I am in the process of settling my debt. A collection agency which bought my account is charging more than double what I owed. Is this legal? How much can a collection agency legally charge? Please if you dont really know the answer to my question do not respond. I need to know the answer. Thanks
2006-08-21 15:39:47 · 9 answers · asked by mertz 1 in Business & Finance ➔ Credit
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2006-08-23 14:55:54 · answer #1 · answered by Anonymous · 0⤊ 0⤋
This Site Might Help You.
RE:
Can a collection agency charge more for a debt than what you owe?
I am in the process of settling my debt. A collection agency which bought my account is charging more than double what I owed. Is this legal? How much can a collection agency legally charge? Please if you dont really know the answer to my question do not respond. I need to know the answer. ...
2015-08-16 18:46:37 · answer #2 · answered by Anonymous · 0⤊ 0⤋
A collection agency bought the account from the institution you were orginally with. If that institution kept your account active (and continued to charge the interest rate) depending upon how long before they sold the account to the collection agency then yes. If the late fees and interest added up to about the same amount as the original amount of debt. On a side note, usually collection agencies buy these accounts pennies on the dollar. So you may be able to make a deal with them and offer a smaller amount. And they might settle for it because they would still be getting a profit.
2006-08-21 15:51:54 · answer #3 · answered by Ben 2 · 2⤊ 0⤋
Under the Federal Fair Debt Debt Collection Practices Act, a debt collector can only seek payment for an amount permitted by law or by the contract. So the answer to your question turns on how much interest your contract called for upon default.
My advice, send a letter to the collection agency asking for a complete accounting of the amount they seek to collect. Make sure to send the letter via certified mail. Depending on when your first made contact with them, they are required under federal law to provide the requested information or simply stop collection. Here is a link for some additional information. On the FTC's site you will find information regarding how much a debt collector may charge. Best of luck.
2006-08-22 13:09:26 · answer #4 · answered by Q Ball 2 · 3⤊ 0⤋
Some charge interest on the debt owed. Also when companies turn your balance over to an agency, the agency sometimes carry a fee on top of the interest.
2006-08-21 15:46:09 · answer #5 · answered by Anonymous · 1⤊ 1⤋
Arizona is a community property state and as such, all debts incurred during a marriage are the responsibility of both spouses even if only one is on the debt. So having only you on the agreement means that they could go after your wife separately for the full remaining balance. Who is the person you are dealing with? If they work for you, listen to them. If they work for the credit card lender, get your own legal advice. Even if it costs you $150 for an hours chat, it is worth it.
2016-03-17 13:12:41 · answer #6 · answered by Anonymous · 0⤊ 0⤋
The short answer is no unless they have obtained a judgment against you. You may have a cause of action against the debt collector under the Fair Debt Collection Practices Act. Visit this web site for more information: http://www.debt-releif-law.com.
2014-08-29 08:53:16 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Yes it's legal.
2006-08-21 15:45:42 · answer #8 · answered by Jen G 6 · 0⤊ 2⤋
How many times are u going to ask this question?
2006-08-21 15:47:34 · answer #9 · answered by Luckys Charm 4 · 0⤊ 3⤋
Yes, it is called interest. Weeee!
2006-08-21 15:45:05 · answer #10 · answered by Anonymous · 0⤊ 4⤋