how much can a collection agency add in fees to collect a bill I am just getting from 14 months ago ??? The check was for $ 21.39 and they want me to pay $ 117 plus $ 12 convience fee !
A collection agency can only add fees if the contract you signed with your creditor when you incurred the debt expressly allows it or if the law in your state permits the addition of fees. The collector cannot add fees if your contract specifically prohibits it or if the law in your state prohibits it. I do not know what sort of debt you are writing about but if it is credit card debt, credit card agreements typically allow the addition of fees.
Of course even when collectors are not allowed to add fees, many of them do anyway because they know that consumers tend to be afraid of them and therefore, will pay them whatever they can -- even if some of the money the collectors are demanding the consumers are not obligated to pay. Also, in situations when a collector is permitted to add fees, the amount of the fees the collector ads may be excessive.
What all of this means is that you are right to question whether or not you must pay the fees that the collector is demanding. Therefore, I recommend that you review the contract/agreement related to the debt that is in collections to see what it says about fees and that you ask the collector for a written accounting of what you are being asked to pay -- a breakdown of the types and amounts of fees and other charges the collector has added to your debt. Put your request in writing send it certified mail with a return receipt requested. The collector may not provide you with the information you are asking for but you will have created a written record that you asked for it which may be useful to you later if you have reason to take legal action against the collector.
If reading your contract/agreement and getting information about the fees you are being charged from the collector does not answer your question, then I recommend you go here free legal advice about debt collection. This page provides you with information about free and low cost legal resources that can help you determine if the collector is legally entitled to do what it is doing. If the collector is violating the law, the resources can advise you about your next steps, which might include having an attorney write a letter to the collector and/or suing the collector.
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