0
Can a collection agency you paid in full for a debt still charge you interest and other fees?
Wiki User
∙ 15y ago
If you have paid them the total of the amount you woed and they were attemtping to collect, they cannot add any further fees on top of it.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
Can a third party collection agency that bought a charged off debt continue to charge interest on that debt?
Yes. If they decide to pursue legal remedies, such as a lawsuit. They may also, in some instances, recover legal expenses incurred in the process. Under Section 808 Unfair Practices of the Fair Debt Collection Practices Act under the Consumer Credit Protection Act, federal law prohibits a debt collector from collecting any amount (including any interest, fees, charge, or expense incidental to the principal obligation) unless such amount is expressly authoized by the agreement creating the debt or permitted by law. If a debt collection agency owns your account, and you did not expressly enter an agreement to pay interest and fees to that collection agency, than they cannot charge you anymore than what the already existing balance is. The above is putting words in...if the agreement authorizes interest payments, and or other charges, (like expenses in collection or enforcing the agreement)...they are absolutely part of the rights another purchaser (the collection agency) may and does purchase. These terms are virtually always included in any loan agreement. There is no such requirement that any future owner of the rights be named in the original agreement..for obvious reasons (like that requires knowing who the buyer, maybe years in the future, would be....loans of all natures are bought and sold, or transferred between companies for their own accounting/finance purposes all the time...daily). And rightfully so, as who you owe it too is entirely irrelevant to your obligation to pay, and pay the losses they incur.
What would happen if you took a cash advance from your credit card and could not pay it off?
The same thing that would happen if you didn't pay for any other charges. Charge off, collection agency, collection attorney, possible lawsuit, judgment, judgment action. This is a bit simplified but the basics are,your wages and bank accounts can be garnished, property can be seized and sold (seldom happens)etc. It would be in your best interest to consult with an attorney, most offer free or minimal charge consultations
What do you do if an account was turned over to a collection agency but the original creditor accepted your payment in full?
Contact the original creditor. Provide proof of your payment. They need to retract the account from the collection agency. The account could have been sold to the collection agency or simply assigned to them. For your purposes, it does not matter which situation applies. You paid the original creditor and your credit report needs to reflect this. After they do what they need to do to get the account back; you then dispute the entries with all three credit bureaus. The original account should show as a paid collection and the other collection account should be removed from your credit report entirely.
What banks do not charge a fee to cash out of country check?
All banks will charge you for collection of an out of country check. Since the process of check collection of an out of country check involves liaising with banks from other countries, banks usually charge a fee to the person who is cashing that check. It will take 2-3 weeks to get your cash from an international check.
What is charged in an interest rate?
Interest Rate is the cost of borrowing money. When a bank or other lending institution lends money to you, they charge what is called an interest rate. This interest rate is typically set by governing bank of the country - for example, in Canada it is the Bank of Canada, in the USA it is the Federal Reserve. This is called the Prime Rate and is the rate of interest banks charge their best customers. You and I usually get .5% or 1.5% more than that. Credit Cards charge a lot of interest - typically 20% to 22% per annum.
Can you be charged interest on medical bills by a collection agency?
Yes, unfortunately a collection agency can charge interest and other fees when they obtain a debt.
Can a debt be listed on your credit report by the collection agency as two separate entries with one as a charge off and the other as a collection fee?
Yes, the charge off is entered by the original creditor, and the collection fee is a separate debt.
Can collection agencies charge interest?
Yes, unfortunately they can charge interest and other fees if they have purchased the debt from your original creditor. However, it is always a good possibility to negotiate collections for a fraction of what you owe (including extra fees).
If the collection agency amount is more than the creditor amount which amount do you legally have to pay?
A collection agency legally require the amount of the debt, plus any other charges/penalties incurred in the collection of the debt.
If you are advised not to give your bank account information to a collection agency does that mean you should not pay by personal check?
It is in the best interest of the debtor to not allow access to his or her financial information and most particularly not to agree to an automatic withdrawal from a bank account by a collection agency. The safest method is to pay other means, such as a USP money order with return receipt.
Can a third party collection agency that bought a charged off debt continue to charge interest on that debt?
Yes. If they decide to pursue legal remedies, such as a lawsuit. They may also, in some instances, recover legal expenses incurred in the process. Under Section 808 Unfair Practices of the Fair Debt Collection Practices Act under the Consumer Credit Protection Act, federal law prohibits a debt collector from collecting any amount (including any interest, fees, charge, or expense incidental to the principal obligation) unless such amount is expressly authoized by the agreement creating the debt or permitted by law. If a debt collection agency owns your account, and you did not expressly enter an agreement to pay interest and fees to that collection agency, than they cannot charge you anymore than what the already existing balance is. The above is putting words in...if the agreement authorizes interest payments, and or other charges, (like expenses in collection or enforcing the agreement)...they are absolutely part of the rights another purchaser (the collection agency) may and does purchase. These terms are virtually always included in any loan agreement. There is no such requirement that any future owner of the rights be named in the original agreement..for obvious reasons (like that requires knowing who the buyer, maybe years in the future, would be....loans of all natures are bought and sold, or transferred between companies for their own accounting/finance purposes all the time...daily). And rightfully so, as who you owe it too is entirely irrelevant to your obligation to pay, and pay the losses they incur.
Can a collection agency call your relatives even if they are not on your list of contacts?
A collection agency can call anyone. The Fair Debt Collection Practices Act indicates that they cannot identify themselves as a collection agency to anyone other than the debtor. Other activities that restrict them include: Sending a postcard or an envelope with a designation that indicates it is from a collection agency, contacting the debtor outside of legal accepted hours of business, publish a list of debtors, or advertise a debt. See the following website for the text of the Fair Debt Collection Act: http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm
What would happen if you took a cash advance from your credit card and could not pay it off?
The same thing that would happen if you didn't pay for any other charges. Charge off, collection agency, collection attorney, possible lawsuit, judgment, judgment action. This is a bit simplified but the basics are,your wages and bank accounts can be garnished, property can be seized and sold (seldom happens)etc. It would be in your best interest to consult with an attorney, most offer free or minimal charge consultations
If something has been sent to collection can the collection agency charge extra Fees?
Typically it is NOT the collection agency that adds "extra fees". When the original creditor has exhausted all of it's internal collection efforts, it sends the debt to a collection agency. The agency is typically paid on a contingency basis (meaning they only get paid if they collect) so the original creditor will add collection costs to the original debt. Collection costs can be whatever the creditor deems appropriate, though it's usually in the 30% range. If you don't like the fees, be careful about the contracts you sign. We all sign the same contracts. The lenders cover themselves ahead of time because they know a percentage of their loans will go into default. If your account is in default, you will pay for it one way or the other. That's how it works.
How do you pay credit card charge-offs?
I am a professional debt collector and would say the best answer would be to either contact your credit card company and see to whom they sold the debt, as they no longer own the debt and therefore can not help you rectify the situation. The other option would be to pull a credit report on yourself and check to see if the collection agency is on your report, or if there was an inquiry on your report from a collection agency.
Can a collection agency collect on an unpaid medical bill even after the hospital closed down?
Yes, the debt is a legal "thing" and can be sold on to other organizations for collection.
Will a charge off get rid of the collection attempts?
No, a "charge off" does not mean the debt has been cancelled by the creditor, the debt is still valid and collectible. The term simply indicates that the creditor is removing the delinquent account from their "books" and will pursue other means such as referring it to a outside collection agency, selling it to a third party collector or using litigation in the form of arbitration or a civil suit to recover money owed.
