Anonymous
Anonymous asked in Business & FinanceCredit · 1 month ago

Why does debt collector agency increase debt amount more than what I owed?

Is that legal? 

6 Answers

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  • 4 weeks ago

    I guess it depends whatever you've agreed to on your credit card, loans, other credit.  Was there fees and penalties you didn't know about?  There can be so many things in fine prints. 

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  • 1 month ago

    Interest and fees are perfectly legal, under the Fair Debt Collection Practices Act  -  IF your original debt agreement specified that such charges could be added to the debt.  IF it did, then any debt collector who purchased the debt from the original creditor may add those charges per the agreement.  The age of the debt is a factor because old debts can expire.

    Whoever cited the Fair Credit Reporting Act doesn't know what they're talking about. That legislation regulates what the reporting bureaus can and can't do with your credit information that they collect on you. 

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  • 1 month ago

    Are you in the united states? If you are in the united states, then yes, it is illegal. The Fair Credit Reporting Act prohibits debt collectors adding on fees to debts that they buy from creditors to attempt to collect on. They can't add a single penny to it. You should contact a consumer protection attorney. Debt collectors or debt buyers often buy these debts at "pennies on the dollar" depending on how old they are. This means that they haven't even themselves paid the face value of the debt they are attempting to collect. They can't add interest, penalties or late fees to the debt. For example I once owed a credit card company $500. I didn't pay it. It got charged off and picked up by a debt collector. I still only owed $500, which I never did pay to the debt collector either. Of course this only applies to consumer debts.

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  • Anonymous
    1 month ago

    They may be able to add their fees. I worked collections briefly 30 years ago and almost none of ours did that but one did.  That may have changed. I don't know for sure.

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  • 1 month ago

    They are adding on "their fees"

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  • DON W
    Lv 7
    1 month ago

    Yes. They are legally allowed to add interest, penalties, and processing fees to the amount you owe.

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    • curtisports2
      Lv 7
      1 month agoReport

      The FCRA does NOT apply. The FDCPA applies, and it permits adding interest and fees if certain conditions are met.

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