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If something has been sent to collection can the collection agency charge extra Fees?
Wiki User
∙ 16y ago
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.
Wiki User
∙ 16y ago
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