Legal Question in Credit and Debt Law in California

Outstanding Collections Account

Help! I have an outstanding collections account that I want to pay off- it is now 6 years old. The initial amount owed was a check of $20. This amount was submitted for collections to a law firm that now wants to charge me as follows : service charge=$25 + Treble Damages=$100 + Interest=$86(no interest rate stated). They ask me to pay the total of $231 in order for them to take it off my credit report. Can they legally charge all those fees( I never got contacted by them)or am I being ripped off?


Asked on 4/27/98, 9:18 pm

1 Answer from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Dont pay the bastards

The only thing they would legally be entitled to if it went to court would be interest at the legal rate which in California is 10% simple interest per year.

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Answered on 5/19/98, 3:23 am


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