Late fees on collections?

Can an original creditor continue to charge late fees and interest once they submit to a collection agency?

Comments for Late fees on collections?

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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.

May 05, 2010
No Mention of Late Fees on Statement
by: Anonymous

My mortgage statement has no mention of penalties or late fees or how or when they are accrued.

But, this month, they have added a $70 late fee.

My payment was not paid late.

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