Legal Question in Credit and Debt Law in New Jersey

Without commenting on the exact amount of any charges, the increase is almost certainly due to collection fees. When you signed the credit agreement, it probably provided that, in the event of a default (nonpayment) you agreed to pay collection costs including attorney fees. That is a very common term. When you stopped paying on the card and the creditor turned it over for collection, the costs and fees due to the collection efforts were added. That will continue to happen until the debt is paid or a settlement is reached. You can ask for an explanation of fees, contest them in court, or reduce them through a settlement agreement. However, there is nothing wrong or unusual about the fact that some costs and fees were added provided that this was in the original agreement. Ask for a copy of the agreement. If the collection firm cannot produce one, the fees will not be allowed by a court. /p/ See also: http://info.corbettlaw.net/lawguru.htm