Legal Question in Credit and Debt Law in Maryland

Re: House Lien

Read the attorney`s letter carefully. It`s hard to believe they would try to charge you $150 attorney`s fees. Perhaps the attorney didn`t know you paid the $150 front foot fee, and his second letter was another attempt to collect the front foot fee, not attorney`s fees. The phrase"for the purpose of collecting a debt" may be referring to the purpose of the letter, i.e., to collect the $150 front foot fee debt, not that you are being charged another $150 for their expenses in collecting the front foot fee.

Re: House Lien

Debt collection practices vary from attorney to attorney. Many charge a percentage of the amount collected and/or a flat fee, this depends mostly on the type of debt, the period of delinquency, whether it is paid with or without court action, and other factors. As a side note, I generally charge a percentage of recovery but may charge a flat or split contingent/flat fee depending on the circumstance. If you require additional information, search my responses were I answer another question for someone seeking to have a debt collected.

Nonetheless, YOU cannot be charged any fee by the attorney who collects the debt unless: (1) the contract, loan agreement, note, or other legal document specifies that you agree to pay collection or attorney's fees, or (2) the collection or attorney fees were liquidated, that is adjudged and set in an amount, upon your taking a judgment in a court of law.

If the legal documents specifies that you agree to pay collection or attorney fees, then it must say what those fees are or how they are computed and, in all events, the fee must be reasonable. If an attorney attempts to force payment of a fee that has not been adjudged or part of the legal document under which collection is being pursued, then that attorney is practicing outside of the law. Strict penalties apply under Federal law for unfair debt collection practices and the attorney may be subject to disciplinary action. Damages also apply for collection practices that are illegal.

As to what constitutes a legal document, this is a matter that should be reviewed by an attorney as not all documents that appear to be legal are such.

In certain cases, either based on factual situations or by law, the charging of collection or attorney fees is either not permitted or unlikely of being recovered. Your case may be the latter.

A collector or attorney has no right to ruin your credit and cause you injury in this regard.

If you would like to discuss the matter, please feel free to contact me.

G. Joseph Holthaus III

(410) 799-9002