Late fees on collections?

Jul 21, 2009

Late Fees on Collection Accounts
by: Gerri

If the creditor still owns the debt, and has just hired the collection agency to try to collect, then they most likely can continue to charge interest and penalties on the debt, most likely as they would before the debt became delinquent. If the debt has been purchased by the collection agency, then they can charge interest or penalties but they will be regulated by state law.

That's not to say these charges are always correct, or legal. There have been instances where collection agencies have been found to be illegally inflating debts.

Increasing fees and penalties are another good reason for resolving your collection accounts, whether you end up settling your debt for less than the full balance or you get a free consultation with a bankruptcy attorney.

If you think the charges have been inflated, check with a consumer law attorney or your state attorney general to find out if they are legal.

Late fees on collections?

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Late fees on collections?