can a collection agency legally tack on additional charges to a bill that has been charged off?

Answer 1

Read your contract. It may say that the original creditor can add up to XX% in collection/attorney fees and charges. If it says "original creditor" then the collection agency cannot add any charges. Also, most states limit the amount that can be tacked on to the debt for collection/attorney fees. The norm is 15% of the balance at the time of default. If the original creditor has already added the maximum amount then the collection agency cannot tack on any more charges. Good Luck

Answer 2

"Charged off" simply means the original creditor no longer believes they will get paid. If has ZERO effect on you owing the money. Most contracts specifically allow collection fees to be added to delinquent accounts. Depending on how long your account has been delinquent, the collection agency may has bought the debt at a discount. If that is the case, the fees are negotiable. They won't tell you that, but if you make an offer for a one time payment, they may accept it.

Answer 3

Read the fine print in the contract. It probably states that any reasonable collection fees can be added. Charged off just means that the original company gave up and sold it to a collection company. The collection company now owns the loan.

Answer 4

I am guessing the original creditor is the one that wrote off the debt, however they sold the debt to another company that is now trying to collect.

There is a statue of limitations on how long it can be for them to try and collect .. if you are past the SoL then you can tell them to not contact you anymore, if you are within the SoL, then they will keep up and could take you to court to collect the money.

GL

Answer 5

Why not? The debter stills owes the money whether it has been charged off the creditors books or not.