Are Collection Agencies Allowed to Charge Fees in Addition to the Bill?
- A debt collector may not charge you more than you actually owe, according to federal law. However, the federal law offers a general guideline for the country, but allows for exceptions.
- If the state in which the debt occurred allows for the collection of fees or interest under its law, collectors may add reasonable charges to your bill. Additionally, if your contract for the original debt expressed the charge of fees, and this is not banned by law in your state, the collector may add charges to the original bill.
- Review your bill and request that the collector break down the charges for you. If fees comprise part of the amount owed, know the original balance and the interest and fee amounts. When you orally negotiate a payment plan, request that the collector send you a copy in writing for your records.