is it legal for debt collectors to charge interest on medical bills just needed to know thanks in advance!!!!
2007-01-28 08:11:38 · 3 answers · asked by BlessedMommyof3.. 5 in Business & Finance ➔ Credit
Probably not. They can only charge the interest rate that your original agreement with the original creditor states that will be charged.
2007-01-28 08:15:43 · answer #1 · answered by Ti 7 · 0⤊ 0⤋
when the hospital turns your account over to collection agencies, they literally sell it to the agancies (usually for pennies on the dollar) and it becomes their account. the collectors can then turn around and charge whatever extras (to the extent of the law) they want. this is how they make money on whatever they are able to recover from you.
thats why i NEVER let my debt get into the hands of a collection agency. i always work out a payment plan with the original company or in this case- the hospital
but the hospital is allowed to charge interest up to 5%
2007-01-28 16:22:36 · answer #2 · answered by morequestions 5 · 0⤊ 2⤋
Not on medical bills. That's illegal.
2007-01-28 16:26:31 · answer #3 · answered by da_hammerhead 6 · 0⤊ 0⤋